Business Expansion Loans UK 2026

Types of Expansion Funding

1. Secured Expansion Loan

• Amount: £25k to £5m
• APR: 5 to 10% (secured on property)
• Term: 3 to 15 years
• Best for: Major expansion, multiple locations, business acquisition

2. Unsecured Growth Capital

• Amount: £10k to £500k
• APR: 8 to 18%
• Term: 1 to 5 years
• Best for: Proven businesses, marketing investment, staff expansion

3. Revenue-Based Financing

• Amount: £50k to £5m
• Cost: 1.3 to 1.8x repayment cap
• Flexible: Repay as % of revenue
• Best for: High-growth businesses, SaaS, e-commerce

Requirements for Expansion Loans

• Yes 2 to 3 years profitable trading
• Yes Strong financial statements
• Yes Clear expansion plan with ROI projections
• Yes Proven business model (successful first location)
• Yes 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 to 80% of new location costs
• Better rates than startup (track record)
• Faster approval (2 to 3 weeks vs 6 to 8 weeks for startups)

Business Acquisition Loans

Buying an existing business:

• Typical loan: 50 to 70% of purchase price
• Seller finance: 20 to 30% (seller lends portion)
• Your cash: 10 to 30%
• APR: 6 to 12% for good businesses