Chase business line of credit review
Short-term working capital $500,000 — but the five-year term can be inflexible.
Bottom line: These lines of credit could be a good source of working capital for Chase customers that are happy with their experience. But it may not be ideal for large, long-term projects — you have to pay off the balance in full every five years. Read our full review or get our 30-second take.
- Choose a monthly payment based on your cash flow
- Help desk available 24/7
- Flexible minimum monthly payments
- Requires full repayment every five years
- Only available in 28 states
- Must apply at a branch
Our take on Chase business lines of credit
The Chase business line of credit is ideal for small and midsize business owners with good to excellent credit. Credit lines run from $10,000 to $500,000 over a five-year revolving term, making it a handy choice for both working capital and medium projects without a fixed budget.
You get to pick your monthly payment due date, so you can make sure it suits your business’s cash flow. And you can use the credit line as overdraft protection on your Chase business bank account.
But it’s only available in 28 states. And there’s no online application — you have to visit a branch to apply in person.
It also comes with an annual fee between $150 and $500, though it’s waived if you use an average of 40% of your credit line. APRs aren’t disclosed online and vary depending on your banking relationship, credit history and collateral.
Potentially low rates, based on your banking relationship
While Chase doesn't advertise a range of APRs it offers, large national banks tend to offer the lowest rates available. Here's how pricing generally works for the Chase business line of credit.
- Chase bases its rates on your current relationship with the bank, in addition to credit history and collateral. If you already have an account in good standing, you could receive a competitive deal.
- The main fee to watch out for is an annual fee — though it waives this for some borrowers. If your average daily balance for the year was equal to 40% of your credit limit, you won't have to pay a fee for that year.
- Chase may also charge other fees, such as origination, application or draw fees. But these vary by state. You can reach out to your local branch for more details.
Chase requires full repayment every five years
Chase offers revolving business lines of credit with a renewable, revolving term. This means that during the five-year term, you're only required to make a minimum monthly payment. Minimum monthly payments are either $100 or 1% of your balance, plus interest — whichever is greater.
Once the term is up, you'll have to pay off the balance in full to renew your credit line.
Contact your local branch to see if you qualify
Chase doesn’t publish specific requirements to qualify for a business line of credit other than operating your business in an eligible state. You can find out if you're eligible by reaching out to your local branch.
If your personal credit score is at least 670 and you have an existing business relationship with Chase, you'll likely have a better chance of qualifying. You may also have a better chance of qualifying if you already hold a Chase business bank account or credit card.
Chase business line of credit are available in 28 states
- New Jersey
- New York
- West Virginia
Chases also offers term loans and credit cards
Chase offers a variety of business solutions and merchant services, including:
- Business credit cards available include travel and cashback cards. Two come with no annual fee.
- Business loans don't stop at just term loans. There are also SBA loans and commercial real estate loans for building, refinancing or expanding your business.
- Commercial lines of credit are also available outside the business line of credit. These are specifically for businesses that need access to credit limits over $500,000.
Consider the Chase commercial line of credit for large projects
If your business needs access to more than $500,000 in financing, a commercial line of credit may be the way to go. Here’s how it breaks down:
- Variable rates
- Initial terms from one to two years, renewable after that
- Interest-only payments
- Online payments and advances
Alternatives to Chase
These online lenders may offer a better option for small businesses that don't live in an eligible state or have a Chase banking relationship. To compare lenders your business might qualify for, select the ranges for the loan amount you're looking for, revenue, time in business and personal credit score.
Chase reviews are mostly negative
|BBB customer reviews||1.1 out of 5 stars, based on 310 customer reviews|
|BBB customer complaints||3,630 customer complaints|
|Trustpilot Score||1.3 out of 5 stars, based on 508 customer reviews|
|App Store Score||4.8 out of 5 stars, based on 3,600,000 customer reviews|
|Google Play Score||4.4 out of 5 stars, based on 1,707,724 customer reviews|
|Customer reviews verified as of||13 August 2021|
Chase has overwhelmingly bad reviews on the Better Business Bureau (BBB) and Trustpilot. Reviewers on the BBB report high fees, account closures for no reason and long processing times as major complaints. To Chase’s credit, it responded to most of these complaints. Trustpilot hosts fewer reviews, but customers echo those same complaints.
Applications only available at your local branch
You can’t apply for a Chase business line of credit online or by phone — you’ll need to visit your local branch to fill out an application in person.
Because you must visit a Chase location and speak with a loan representative to apply, it will likely take longer to receive your funds than with many online lenders. Typically banks take a few weeks to a month to process applications. Current customers may see a faster turnaround time, since Chase already has a lot of the information it needs.
Save Chase lines of credit for short-term working capital
Chase business lines of credit could be a good option for Chase customers who need financing short-term working capital. The minimum monthly payments give you more flexibility for small expenses than lines of credit that turn each withdrawal into an installment loan.
But the five-year term could be inflexible if you're financing a long-term project. And if you aren't already a customer, you could face a long application process and higher rates than you would at your current bank.