Chase business loans: 2023 review
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At a glance
| Overall Score | 3.6 |
|---|---|
| Overview | Chase is a good option for established businesses, but it may not be the right choice for newer businesses or businesses with limited revenue. Not much information is available online, so you will need to be near one of its branches for in-person help and application guidance. |
| Loan amount: | $5,000 to $500,000+ |
| APR: | Not stated |
| Term lengths: | Up to 25 years |
| Minimum credit score: | Not stated |
Who Chase is best for
Chase is best for established businesses looking for a loan from a traditional bank or that already use Chase for their banking. Because it does not list its minimum requirements or rates online, you will need to meet with a Chase banker to discuss your business’s financial needs.
Who Chase may not be best for
Newer businesses and borrowers with fair-to-bad credit may want to shop elsewhere for their financing. Chase isn’t upfront about its requirements, but like most traditional banks, you’ll likely need to have been in business for at least two years and have good or excellent credit.
It’s also likely not a good fit for business owners who need fast financing. Chase may not state how fast its business loans are, but since you will need to apply at a branch, you can expect a funding speed of at least a few days, if not weeks. To get a fast business loan, you’ll likely need to look at online lenders since they tend to offer streamlined online applications and approval times in as little as 24 hours if approved.
Chase pros and cons
PROS
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Large loans of $500,000 or more
Terms up to 25 years on some loans
Variety of loan and line options
CONS
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Must apply in person
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Limited information about interest and fees
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Only available in 28 states
Business loan types offered
Chase offers business lines of credit, term loans, commercial real estate loans and SBA loans. Your state and business setup will determine the type of financing you are eligible for.Business lines of credit
Chase offers two lines of credit: a business line of credit designed to fund expenses between $10,000 to $500,000 and a commercial line of credit for expenses over $500,000. They have variable rates that are based on your banking relationship, credit and collateral, and are indexed to the Prime Rate or Secured Overnight Financing Rate (SOFT), respectively.
Both draws and payments can be initiated online, but you will need to apply for financing at a Chase branch. There is a fee for either $200 or 0.25 percent of your credit limit, whichever is greater. This is comparable to other top lenders like American Express. But Chase will waive its fee if your line utilization is 40 percent or higher during a 12-month period.Small business loans
Chase stands out because it offers term loans starting at just $5,000. Many bank and online lenders tend to have much higher minimum loan amounts. This includes banks and online lenders, like:
There are no origination fees, although other common loan fees — like document fees and closing costs — may apply to your loan. There is also a prepayment penalty for loans over $250,000.
You will have up to seven years to repay a small business loan from Chase. The exact cost will depend on your state, your business and the type of term loan you apply for. But overall, you can expect fixed monthly payments and a choice between an unsecured loan and a secured equipment loan.SBA loans
Like many of Chase’s loan options, there is not much information on the SBA programs it participates in. So you’ll need to contact the bank to find out more about the SBA loan rates it charges.Commercial real estate financing
Chase offers financing for the purchase, renovation or refinance of commercial properties — either through conventional financing or SBA loans. Its commercial real estate loans are secured by the property, which is common practice, and terms extend up to 25 years.
Unlike many lenders, there is no origination fee, but there is a prepayment fee for loans over $250,000. Your business can choose between a fixed or variable rate and between fixed monthly payments or a balloon payment at the end of the loan. And while specific information is not available, Chase states that its commercial real estate loans are flexible and designed to serve a variety of businesses.
Do you qualify?
Chase is not upfront about what it takes to qualify for a business loan or line of credit. That being said, multiple years in business, strong annual revenue and positive financial projections are all good places to start with any lender. If you have fair or bad credit, you will likely need a business loan for bad credit from a different lender.
For more information, you will need to consult with a Chase representative. They will be able to provide specifics on how your business can qualify for funding and what information you will need to submit. Keep in mind that Chase does not have branches in every state. It also notes that its loan products are only available in 28 states and that not every product is available in every state, so your loan and line options could be limited based on your area.
What we like and what we don’t like
Chase business loans do have their perks if you need large loans. But if you want something that is clear and straightforward, it may be worth your time to check other lenders first.
What we like
- Large loans of $500,000 or more. Chase states that its upper limit of $500,000 for its loans and lines is flexible. If your business needs higher loan amounts, you are able to discuss this and develop a plan with your Chase consultant.
- Terms up to 25 years on some loans. Commercial real estate loans are available with terms up to 25 years. For Chase’s other loans, it offers terms up to five or seven years, which may help your business find a sweet spot between monthly payments and overall cost in interest and fees.
- Variety of loan and line options. Chase offers two lines of credit and four loan options to its customers. There are also business loans for minorities. And since it is also an SBA lender, you may be able to qualify for a 7(a) or 504 loan through Chase as well.
What we don’t like
- Must apply in person. Chase does not have an online application process. You will need to schedule an appointment and meet with an advisor at one of its branches in order to apply for any of its business loan products.
- Limited information about interest and fees. Chase states that basic information, like interest rate and fees, differs between its locations. While this is standard for large national banks, it does mean that Chase does not supply any information about its costs online.
- Only available in 28 states. You’ll need to live in one of the following states for a Chase business loan: AZ, CA, CO, CT, DE, FL, GA, ID, IL, IN, KY, LA, MA, MD, MI, NJ, NV, NY, OH, OK, OR, PA, TX, UT, VA, WA, WI, WV.
How to apply for a loan with Chase
To apply for a business loan or line of credit with Chase, you will need to make an appointment at a branch. On the business loans page, Chase has a quick link to its locations by state, which you can narrow down to your city and find the phone number and address of your nearest branch.Chase does not provide any specific information about what information you need to provide when you apply. But here’s a look at the common documents lenders typically require:
- Business owners’ Social Security numbers, contact details and ownership percentage
- Business license and registration
- Business plan
- Bank statements
- Tax returns
- List of current assets and debts
Your Chase advisor will be able to list the exact documents your business needs to submit when you meet to discuss an application.
Chase FAQs
How Bankrate rates Chase
Overall Score 3.6 Accessibility 2.9 Traditional banks like Chase tend to work mostly with established businesses with good or excellent credit. Affordability 3.0 Chase doesn’t offer much information on its website about its rates and fees. Transparency 3.4 The lack of information on its website brings Chase’s score down. Customer experience 4.8 Chase is known for providing a good customer experience. Flexibility 3.8 Chase offers multiple loan products and may provide some business owners higher loan limits. Methodology
To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 20 lenders and gave each a rating, which consists of five categories:
- Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
- Affordability: This section measures interest or factor rates and fees.
- Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
- Customer experience: Customer service hours, online applications and app availability are considered in this category.
- Flexibility: This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.