Chase business term loans review May 2019 | finder.com
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Chase business term loans review

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Chase business loans allow you to borrow a large amount to support your business’s bottom line.

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 one to seven 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.

Product details

Product nameChase business term loan
Interest rateVaries by business
Minimum loan term12 months (1 year)
Maximum loan term84 months (7 years)
Minimum loan amounts$5,000
Repayment typeFixed

What other types of business financing does Chase offer?

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 May 25th, 2019
Name Product Filter Values Min. Amount Max. Amount Requirements
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$5,000
$500,000
600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000 to 500,000
$5,000 to 500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Customizable loans with no origination fee for business owners in a hurry.
$500
$250,000
1+ years in business, $50,000+ annual revenue or $4,200+ monthly revenue over last 3 months
A simple, convenient online application could securely get the funds you need to grow your business.
$5,000
$250,000
6+ months in business, $180K annual business revenue, 500+ credit $15K+ in monthly deposits
Funding to cover business expenses with daily or weekly repayments.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but many require good personal credit, minimum annual revenue and minimum time in business
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.

Compare up to 4 providers

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.

  • Maximum loan. $250,000
  • Minimum loan. $500
Go to Kabbage Inc.'s site

LoanBuilder

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.

  • Maximum loan. $500,000
  • Minimum loan. $5,000
Go to LoanBuilder's site

OnDeck

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.

  • Maximum loan. $500,000
  • Minimum loan. $5,000
Go to OnDeck Capital's site

Bottom line

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.

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2 Responses

  1. Default Gravatar
    LisaMarch 22, 2019

    What is the amount of equity injection ? 10% 20%

    • Avatarfinder Customer Care
      EllieMarch 24, 2019Staff

      Hi Lisa,

      Thank you for getting in touch with Finder.

      The standard equity injection required for SBA loans is 10%. None required for their standard business term loan. I hope this helps.

      Thank you and have a wonderful day!

      Kind regards,
      Ellie

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