Expansion Financing

Capital used to enlarge a corporation through a variety of means.

Expansion financing is capital used to enlarge a corporation through any of a range of methods. It is used for internal growth through organic measures such as the launch of new products or the acquisition of new customers.

How does it work?

Expansion financing can be done via a variety of methods, including instalment loans, which are loans that must be paid back in regular instalments, usually monthly, over a contracted time period.

Practical Application Example

“ Expansion financing differs depending on the exact financing option chosen. However, instalment loans are characterised by predictable monthly payments as ensured by fixed interest rates, as well as often low monthly payments due to these loans' generally long-term nature. ”