Glossary

Expansion capital

Expansion capital is funding an established business uses to grow — new sites, equipment, hires or markets. Because the business is proven, debt is usually the cheaper route over equity.

2 min read

Funds growthFor trading firms

Premises/kit/hiresDebt beats dilution

Definition

Expansion capital (growth capital) funds the scaling of a proven business — additional premises, equipment, staff, stock or new-market entry. It sits between early-stage seed capital and mature funding.

In plain terms

It is money to grow something that already works, not to test whether it will. Because the risk is lower, lenders compete for it.

Why it matters for your company

For a profitable company, a term loan or credit facility funds growth without giving away equity. Size the affordable amount with the affordability by turnover calculator, then apply.