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Aliyyah Camp is a publisher helping folks compare personal, student, car and business loans. Prior to joining Finder, she ran her own personal finance blog and wrote for numerous finance sites. Aliyyah earned a BA in communication from the University of Pennsylvania. She likes to go to the movies and go for runs outdoors.
When you’re looking to start a business or expand into new areas, finding the right financing is critical. You need the right terms, the right rates and the right amounts to make things work. Fortunately, Chase business loans can help. If your business already has a Chase checking account and you’re ready to go with a business plan that outlines why you need a loan, you may be able to snag the money you need for your business.
What is a Chase business term loan?
Chase business term loans offer small business owners loans of $5,000 to $500,000 and terms that range from 1 year to 7 years. Interest rates vary depending on credit history and the type of business you have, so you’ll have to discuss these specifics with a Chase loan advisor.
Monthly payments are fixed to make managing your budget easier, and if you qualify, you may even be able to borrow an SBA loan, which can lower your rates.
What other types of business financing does Chase offer?
Business lines of credit. A line of credit from Chase will allow you to borrow $10,000 to $500,000. It has a variable rate and low annual fees.
SBA financing. Chase offers government-backed loans to borrowers looking to invest in an SBA 7(a) loan or a SBA 504 loan. These can be used for a variety of purposes and often come with lower interest rates than equivalent term loans.
Commercial real estate financing. You can buy, build or refinance real estate with a loan from Chase. These are good for up to 80% of the loan-to-value ratio and have terms of 3, 5 or 7 years.
Equipment financing. Equipment financing from Chase may be able to cover up to 100% of the cost of new equipment and up to 10% of the soft costs, including training, transportation and sales tax.
Trade financing. If your company is ready to expand into global markets, you can use Chase trade financing to cover importation costs, collect money from overseas or give third party the ability to use funds from your account.
What are the benefits and drawbacks of a Chase business term loan?
Pros
High maximum loan amounts. You may be able to snag a term loan for up to $5 million if you have a solid business plan, great credit and opt for an SBA term loan.
Low interest rates. Your interest rate will depend on your credit and financing needs, but you may be able to snag a lower rate than with other, similar business loans.
Highly accessible. Chase has more than 5,000 branches across the US to make it easy for you to meet in person and discuss your loan terms.
Quick funding. Your funds will be deposited directly into your Chase checking account once your loan is approved.
Cons
In-person application. You must visit a Chase branch to apply for a business loan.
Open only to Chase accountholders. You must hold or open a business banking account in order to qualify for any of the business loan options offered by Chase.
Down payment required. Chase requires you to have a down payment for many of its business loan options.
Fees and interest rates. Interest rates and applicable fees aren’t available online, so you won’t know the total cost of the loan until you meet with a banker in person.
Compare more business loan options
Updated October 21st, 2019
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More information on Chase business lines of credit
A business line of credit is a mixture of a credit card and a term loan. You’ll have access to as much money as you need whenever you need it, and rather than pay interest on a lump sum, you’ll instead only pay interest on the amount you withdraw. Your interest will be variable and based on the Prime Rate.
Less than $50,000: Annual fee of $150.
$50,000 to $250,000: Annual fee of $250.
$250,000 to $500,000: Annual fee of $500.
Chase also offers a commercial line of credit if you need more than $500,000 at no annual fee. These are meant to cover large working capital needs and have terms lasting from 12 to 24 months.
Is my business eligible for a Chase business term loan?
Your approval will depend on the type of business you’re running, your personal credit and the credit of your business, the amount of your down payment and the terms of your loan.
You must also:
Hold a Chase business checking account
Have a realistic business plan
Visit a Chase location and meet in person
Chase’s SBA loan requires a 10% down payment or “equity injection”. No down payment is required for the non-SBA term loan.
What happens after I receive a business loan from Chase?
Once you’ve got your loan, you can use your funds for the purpose you outlined in your loan application, whether that’s opening your business or expanding into new markets.
Keep in mind that your loan is drawn automatically from your Chase checking account. In order for your payments to process, you should have enough to cover them in your account each month. To save money on interest, you should also attempt to pay more than the minimum payment each month. This will help decrease the life of your loan, thus decreasing its total cost.
Chase business loan alternatives
Chase isn’t the only place to find a business loan. If you’ve decided Chase isn’t the best lender for you, these alternatives may suit your needs better.
Kabbage
Kabbage offers business lines of credit, not term loans. The length of your loan will be short, with most lines of credit lasting from 6 to 12 months. However, Kabbage has a complex fee schedule that may make it difficult to calculate how much you’ll owe, and your business must have an annual revenue of at least $50,000.
LoanBuilder is a PayPal service for business owners who have a credit score of at least 600 and a business that makes at least $100,000 annually. You’ll only pay a one-time fixed fee for your loan. Unlike some of its competitors, LoanBuilder requires you to pay weekly, not monthly, so you must have the cash flow to cover each payment.
OnDeck doesn’t have the same strict requirements as many banks and other lending services. Instead, your application will be judged by your business’ performance and cash flow. You must have at least $100,000 in gross revenue per year and be based in the US, among other eligility criteria, in order to qualify.
Chase business term loans can be an excellent source of funding if you have good credit and a well-rounded business plan. However, it may pay off to consider the alternative options listed above and to compare your business loan options to see if you qualify for better rates or lower fees elsewhere.
Frequently asked questions about Chase
Yes. Chase uses 128-bit encryption to keep your banking information safe. The https:// and lock symbol on the address bar let you know the site is secure.
Use the online branch locator on Chase’s website.
Chase business loans are available in the following states:
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