Business expansion funding is designed specifically for established businesses. The capital from an expansion loan can make it possible for you to scale your business or keep pace with a surge in demand and future potential for scalability. If your business now has a track record of success, the process is much easier because lenders can see the success. You can get an expansion loan without coming up with any cash injection because there’s a clear plan for the cash!

There are plenty of ways you can use the funds from a small business expansion loan, so it's important to focus on what your business needs to meet the demand and grow. Here are just a few ways you might want to use your loan money: Expand your team. Whether you're running the business solo or you have a small team, you might feel stretched too thin from the recent surge in growth. Growing your team can not only help you keep up with demand, but it can also help you offload more menial tasks to new employees and give you and other decision-makers more time to focus steering the ship towards the next growth opportunity. Open or expand a location. The surge in demand has caused your business to outgrow its first physical location. Maybe it's starting to feel like standing room only at the office or warehouse. A small business expansion loan can help you afford to expand your current facilities or open a new location, potentially relieving some stress and opening up new opportunities to expand in other ways. Finance new equipment. Sometimes, your team is big enough, and your location size is sufficient, but your equipment needs an upgrade. For example, a manufacturing business could increase production with higher-capacity machinery. Launch a new product. If you started your business with just one or two products and the surge in demand has created new customers, your business might benefit from adding a new product to the portfolio. Expanding a product line can be expensive, though. You'll need to invest in research and development, pay for material and manufacturing costs, and so on. A business expansion loan can help you afford those costs without draining your retained earnings. Expand to a new market. You've found success with your current product or service, but the current market you're in is saturated or you see a new market with less competition. An expansion loan can help you cover the costs associated with that jump to a new market.

Here's a quick summary of what you should have ready to go before you apply: Tax returns: You'll typically need to submit your personal and business tax returns for the past three years. These provide the lender with an idea of whether your company has a good track record of profitability. Financial statements: This may include your balance sheet, income statement and cash flow statement. It shows lenders the state of your business. "Lenders are going to want to make sure [you have] sufficient cash flow to cover any new debt payments," says Patrick O'Keefe, CEO of Grow Michigan, a fund established by a group of banks to help Michigan-based small businesses. Business plan: Share some details about your business, how you plan to use the funds and how you'll make it profitable. Collateral: Even with an established business, lenders may require collateral to protect themselves against default. Consider which tangible business assets you could use to secure the loan. Business credit report: If you've established a good credit history for your business, it can improve your chances of getting approved. If your business credit is poor, though, or you haven't established a credit history, you may have a hard time securing a loan. Legal documents: Lenders may require various legal documents for your business, such as your business license, articles of incorporation, third-party contracts, franchise agreements and commercial leases.

If you need your cash fast and want to avoid an intense underwriting process, The Collective Lending Group is your choice. We require less documentation and offer a quicker turnaround time. Click here to receive application documents.