Expansion Guide

Business Expansion Loans UK 2025

Finance business growth, second locations, acquisitions. £25k-£5m for established profitable UK businesses seeking expansion.

£25k-£5m

Funding range

5-10%

Best APR

3-15yrs

Term length

3 types

Options available

Types of Expansion Funding

Secured Expansion Loan

Amount:

£25k-£5m

APR:

5-10% APR

Term:

3-15 years

Secured:

Secured on property

Best for:

Major expansion, multiple locations, business acquisition

Unsecured Growth Capital

Amount:

£10k-£500k

APR:

8-18% APR

Term:

1-5 years

Best for:

Proven businesses, marketing investment, staff expansion

Revenue-Based Financing

Amount:

£50k-£5m

Cost:

1.3-1.8x repayment cap

Flexible:

Repay as % of revenue

Best for:

High-growth businesses, SaaS, e-commerce

Requirements for Expansion Loans

2-3 years profitable trading

Strong financial statements

Clear expansion plan with ROI projections

Proven business model (successful first location)

Management capacity for growth

Second Location Financing

For retail/restaurant chains opening 2nd, 3rd locations:

Lenders more confident - proven model in location 1

Can borrow 60-80% of new location costs

Better rates than startup (track record)

Faster approval (2-3 weeks vs 6-8 weeks for startups)

Business Acquisition Loans

Buying an existing business:

Typical loan: 50-70% of purchase price

Seller finance: 20-30% (seller lends portion)

Your cash: 10-30%

APR: 6-12% for good businesses

Expansion Finance Quotes

Compare expansion loans, growth capital, and acquisition finance

Best rates for established businesses seeking growth

Get Expansion Funding

Frequently Asked Questions

What types of expansion funding are available?

Three main types: Secured Expansion Loans (£25k-£5m, 5-10% APR, 3-15 years, secured on property) for major expansion/multiple locations/acquisitions. Unsecured Growth Capital (£10k-£500k, 8-18% APR, 1-5 years) for proven businesses/marketing/staff expansion. Revenue-Based Financing (£50k-£5m, 1.3-1.8x cap, flexible repayment) for high-growth businesses/SaaS/e-commerce.

What are the requirements for expansion loans?

Requirements include: 2-3 years profitable trading, strong financial statements, clear expansion plan with ROI projections, proven business model (successful first location), and management capacity for growth.

Can I finance a second location?

Yes! For retail/restaurant chains opening 2nd, 3rd locations: Lenders more confident (proven model in location 1), can borrow 60-80% of new location costs, better rates than startup (track record), faster approval (2-3 weeks vs 6-8 weeks for startups).