Chase Business Line of Credit: Apply or Not?

(February 2025)

In This Article

Chase is one of the largest banks in the United States. The bank gives you access to various business lending products, including business lines of credit. Its business line of credit allows you access to working capital when needed. 

Understand that funds are available at different rates, with credit starting at $10,000-$500,000. These funds are accessible provided you meet the requirements stipulated by the bank. 

Be aware, also, that many lenders often play games with loan costs and requirements, making it difficult for you to spot the actual rate and terms. Given the previous claim, is it safe to apply for a Chase Business Line of Credit, or not? 

LET’S CUT TO THE CHASE!

BUY IT IF

  • You seek high credit limits: Whether you need small or large business loans, you can access Chase’s generous credit limits, ranging from $10,000 to $500,000. This business line of credit gives you the capacity to finance significant expenses within your business or any investments you want to undertake.
  • You want to enhance your business credit: You can build your credit score if you use your Chase business line of credit responsibly. Factors that can strengthen your credit profile include timely repayments and prudent use of credit.  
  • You desire a reputable financial partner: As you go about doing your business, you need some sort of financial backing, especially for rainy days. You can rely on Chase—a well-established and reputable financial institution—for support.
  • Seek business insights and support: Chase’s services extend beyond financial products, giving you valuable business insights and support. You can access resources, advice, and tools to help you make informed financial decisions and skyrocket your business.   
  • You crave longer-term loans: Chase business line of credit comes with a five-year revolving term, giving you the possibility to renew it thereafter. You also have a five-year plan for repayment provided you qualify for the loan. With these terms, you can find a sweet spot between fees, overall interest, and monthly payments. 
  • You run a business: Chase business line of credit offers a range of valuable financial solutions to grow your business. Whether it’s expanding your product line, investing in new technology, or entering a new market, the bank is positioned to help you, provided you meet its requirements.  

DON’T BUY IT IF

  • You’re applying with bad credit: Understand that Chase has stringent qualification criteria which can be challenging for you. If you don’t have a strong credit history, you may not qualify for favorable terms. 
  • You need a business loan with invariable interest rates: Be aware that Chase business lines of credit often come with variable interest rates tied to the prime rate, including a margin. Your interest rate and monthly payments can increase significantly, should the prime rate rise. 
  • You need transparency with loan rates and terms: Chase is known for not being transparent with its rates and terms. There are complaints from different review sites regarding its hidden fees you must be aware of. These fees can accumulate, increasing your overall cost of borrowing.   
  • You run a large or mega enterprise: Chase business line of credit is specially designed for small to medium-scale businesses. If you’re running a large enterprise that has complex financial needs—beyond $500,000, you may need a larger loan type. 

THE BOTTOM LINE

Chase business line of credit offers many advantages, but not suitable for every business. You must factor in your financial needs, and ensure you meet its requirements before applying. If you don’t meet its criteria, or get your desired financial needs, you may want to explore other financing options that better align with your needs and circumstances. 

NOW, LET’S DETAIL THINGS FOR YOU.

As earlier established, you can access line of credit from Chase starting at $10,000 to $500,000. The comes with a five-year revolving term, potentially allowing you to renew thereafter. It also comes with a repayment term of 5 years. 

The price to obtain a business line of credit with Chase is a bit unstable. First, it has a variable rate (indexed to Prime). What this means is that the interest can fluctuate over the life of the loan, and the variable rate is linked to the prime rate. 

Also, factors, such as your banking relationship, credit history, and collateral determine the interest rate you get when applying for a business line of credit with Chase. 

Your payments for this kind of loan come with a few criteria. The monthly minimum payment is $100, or the interest you owe plus 1% of the remaining balance. These criteria are determined by whichever amount is higher (during the draw period); either the $100 or the interest you owe + 1% of the balance left.  

WHAT’S THE CATCH WITH CHASE BUSINESS LINE OF CREDIT?

It is common practice with most lenders—including Chase—to provide vague information about its loan rates and terms, leaving you in the loop. While Chase provides fixed and variable interest rates for its line of credit, be aware that the lender doesn’t list a range on its website. 

Keep in mind, also, that the interest rates you get from Chase are determined by your location.  The lender also offers you vague information about its costs. The implication is that you don’t have enough information to make an informed decision.

Speaking of rates-listing, when a lender refuses to list its rates, it might imply that there could be hidden costs or fees associated with the loan you’re applying for. That’s a potential red flag you should be aware of. 

It could also mean that Chase:

  • Has less competitive rates and terms. 
  • Wants to play games around its costs.

As a remedy, conduct due diligence, and be cautious. Speak with the lender to get detailed information on rates and terms. Compare Chase with multiple creditors to be sure you’re getting competitive terms. 

WHAT YOU NEED TO KNOW.

It was stated earlier—if you recall—that Chase isn’t transparent with its rates, terms, and costs. The interest rates you get are determined by factors including your credit history, banking relationship, and collateral. 

Does Chase offer discounts and rebates for its business line of credit? Well, it is not categorically stated on its website.  

However, like many financial institutions, Chase may allow you to enjoy various discounts, rebates, or promotional rates. You can benefit from relationship discounts, free waivers, volume discounts, loyalty programs, and more. Again, emphasis on “MAY”. 

Speak with a representative at Chase and ask questions about things you’re not so sure of. Get all the details you need, to enable you to make informed decisions. 

WHAT ARE CHASE'S COMPETITORS OFFERING WHEN IT COMES TO BUSINESS LINES OF CREDIT?

Chase vs. Bank of America

Both Bank of America and Chase have similar starting amounts of $10,000 for their business lines of credit. However, you can only access up to $250,000 when you apply at Bank of America. Chase, on the other, gives you funding up to $500,000. 

For unsecured business lines of credit at Bank of America, you can get interest rates as low as 10.75%. Its minimum qualifications include personal credit above 700 FICO® score, 2 years in business, and $100,000 in annual revenue. 

On the other hand, Bank of America’s secured business line of credit offers amounts from $25,000 with interest rates as low as 9.50%. It comes with revolving terms, renewable annually. You can qualify for this type of loan if you’re at least 2 years in business, and have a minimum of $250,000 in annual revenue. 

Chase vs. Wells Fargo

Unlike Chase, Wells Fargo’s business line of credit comes in forms. First off, it offers the Wells Fargo business line of credit where you can access funds from $10,000 to $150,00 revolving credit line, provided you’re in business for two years or more. The rates you get with this line of credit are as low as prime + 1.75%. You don’t pay an annual fee for the first year. 

Secondly, you have the Wells Fargo small business advantage line of credit which comes with no annual fee. You can access funds from $5,000 to $50,000 revolving credit line and rates are as low as prime + 4.50%. 

Chase vs. Capital One

While thinking about Chase, note that Capital One has its business line of credit. While there is no specific starting amount on its website, you can access line amounts up to $5 million when you apply at Capital One. 

Just like Chase, Capital One has variable rates based on the Prime Rate and a revolving credit with an annual review. Also, both lenders designed the business line of credit to serve you whether you’re running a small or medium-sized business. 

US Bank

While Chase business line of credit begins from $2,000 to $250,000, the US Bank has a lower threshold. You can access loan from as low as $2,000, and each come with variable rates attached to the Prime Rate. 

Speaking of terms, your terms are revolving credit with an annual review. If you’re running a straightforward application process. When it comes to branch network, Chase stands as a preferred choice to you compared to the US Bank. 

Note that the US Bank is suitable for small to medium-sized businesses. 

WHAT AFFECTS RATES AND TERMS OF CHASE BUSINESS LINE OF CREDIT?

Prices for a business line of credit can fluctuate, whether you’re applying from Chase or its competitor. Be aware that there are company-centric factors that are responsible for the fluctuation. These factors determine the loan amount you get, the interest rate, and the term. Below are factors you can watch out for, to help you better prepare for the costs associated with the loan. 

Credit Score

Both your personal and business credit scores can impact the interest rate and terms you receive when applying for a line of credit with Chase Bank. If you’re having a higher credit score, you typically are qualifying for better rates. However, if you have a bad credit score, you can review your report. Check for errors, and understand the factors contributing to your bad credit score. Focus on building your score by applying for a secured credit card, paying your bills on time, taking out a small loan, and paying on time to show your creditworthiness. 

Amount You’re Applying For

The loan amount you’re applying for has a major impact on the interest rate you get. Typically, when you apply for larger credit lines, the rates are higher compared to when securing a smaller loan amount. That’s not all, the requirements also differ. It is easier to meet the requirements for smaller loan amounts. 

Repayment History

Just like most lenders who are serious with their money, Chase checks your repayment history as one of its prerequisites for granting you a loan. How well have you been able to repay previous loans or credit lines? If you have a strong repayment history, rest assured you’re getting lower rates. If this is your first time applying, and have no repayment history to show, it can be challenging for you. You can start small with secured credit, or leverage credit-builder loans. Remember, though, it takes time and effort, but it’s worth the pain. 

Collateral

Understand that Chase offers both secure and unsecured lines of credit. The secured lines of credit typically offer larger loan limits with collateral required. For smaller loan amounts, you don’t need collateral, that’s why it’s unsecured. So, the presence of collateral makes the difference, impacting the rates and terms you get. 

Fees

Be aware that Chase’s business line of credit comes with different types of fees. You have the annual fees, late payment fees, draw fees… and so on. Each of these fees have its role to play in the overall cost of the loan. Occasionally, banks may waive certain fees associated with your loan. Speak with Chase to know if it has such provision available for its customers. 

Prime Rate

Keep in mind that the interest rate for a Chase business line of credit is often variable and indexed to the prime rate. NB: the prime rate is the interest rate Chase charges you, which also serves as a reference point for…say, adjustable-rate loans or variable-interest-rate products. 

Market Conditions

The market situation is a major factor that affects the prices of Chase business line of credit. During periods of economic uncertainty, inflation, or changes in politico-economic policies, the cost of borrowing may increase. If you understand these factors, you can better prepare for the costs associated with the loan. 

WHAT AFFECTS RATES AND TERMS IN THE INDUSTRY OVERALL?

While there are internal factors that impact the overall prices within a company, like Chase, for instance, expect price fluctuations from influences within the industry overall. These factors have their roles in determining the rates and terms you get from a lender. Read on to find out more.

Market Competition

With the existence of many organizations that offer similar lending services, the hunt for borrowers like you becomes high. Some lenders tweak terms and rates to stay competitive and appear appealing to you. Provided you meet the requirements, you can obtain loans at discounted rates and terms.  

Political Factor

You’d agree that sometimes, when a new government comes in, new policies are implemented. Some of these policies may not be favorable to most financial institutions which affect the rates and terms you get. For instance, changes in tax rates, or foreign exchange directly or indirectly impact what you get in terms of loan. 

Inflation

Know that inflation erodes purchasing power over time. Be aware, also, that the Federal Reserve (Fed) usually responds to rising by increasing the federal funds rate, and the interest rate at which banks lend out. Following this increase, lenders also hike up their prime rate which in turn affects you. 

Loan Type

If you’re borrowing not less than 40% of your line of credit, Chase waives off the annual fee you got to pay. Understand, also, that the APR and fees for line of credit with Chase also varies. You can find similar factors with other lenders within the industry overall. 

HOW TO GET THE BEST DEAL WITH CHASE BUSINESS LINE OF CREDIT?

You’ve got so many options where you can apply for a business line of credit, and Chase is one of them. Remember, though, that each lender has its unique requirements and qualification criteria, including Chase. With that being said, here are tips you need to get the best deal when applying for a business line of credit with Chase: 

  1. Improve Your Credit Score

Get a review of your personal and business credit reports to see if there are errors. If there are inaccuracies, dispute them. You can also improve your credit score by paying your bills on time to build positive history, and pay down existing debt. This way, you can lower your credit utilization ratio. 

  1. Get Your Financial Documentation Handy

Most lenders would typically request financial details about your business. Prepare your profit and loss statement and ensure its accurate and up-to-date. Make sure your balance sheets show a healthy financial position. You may also need to documents on your tax returns, demonstrating financial stability. 

  1. Prepare Your Business Plan

Your business plan remains one of the core requirements when applying for a business line of credit with Chase. Write a comprehensive business plan that outlines your model, marketing analysis, and financial projections. Then, in your plan, clearly explain how you intend to use the line of credit to expand your enterprise. 

  1. Check Out Alternative Lenders

Understand that Chase is not the only lender offering business line of credit. That means, there are alternatives to what you seek. Some of these financial institutions may have favorable rates and terms…while others don’t. When you obtain quotes from multiple lenders, you compare rates and terms to see what works best for you.  

  1. Familiarize Yourself with Chase’s Rates and Terms

Remember, every lender has its rates and terms attached to its loans…including Chase. Get to know what Chase offers in terms of the prime rates and terms to see if you can apply or not. Take note of annual fees, late payment fees, and other charges that may matter. 

  1. Negotiate with Chase

If you have a strong banking relationship with Chase, this is the best time to take advantage of that. Negotiate for better rates and terms. Speak with the customer representative to see if there are any ongoing discounts, promos, or benefits you can leverage. The goal is to get the best deal that gives you more than the value for your money. 

  1. Monitor Economic Indicators

You’d agree that changes in economic condition can impact the deals you get when applying for a line of credit. Keep an eye on Federal Reserve announcements and changes in interest rates. Be aware of inflation trends because they can affect borrowing costs. 

CAN YOU AFFORD CHASE BUSINESS LINE OF CREDIT’S RATES AND TERMS?

While there are alternative options to secure a business line of credit, determining whether you can secure one from Chase requires careful consideration of a couple of factors. 

You’ve gotta check to see if you’ll get the value for your money when you apply. But then, how do you know you can afford a Chase business line of credit? 

First, evaluate your business’s financial health. 

Second, understand the costs associated with the credit line.

Third, assess how the credit line fits into your overall financial strategy. 

Keep in mind that some lenders may offer favorable rates and terms upfront; what seems to be too good to be true. Be careful with such offers. Sometimes, you’re getting baited. 

Again, go back home and draw your plan, ensuring that Chase business line of credit aligns with your business needs and cash flow capabilities. That way, your affordability becomes easier. 

FINALLY: SHOULD YOU APPLY FOR A CHASE BUSINESS LINE OF CREDIT OR NOT?

While considering Chase for a business line of credit, it is important you know all the terms and conditions, and ask questions about anything unclear. Get to know the product’s features, potential pitfalls, and best practices for better decision-making. 

However, Chase stands as a good option for obtaining business line of credit. If you’re seeking short-term funds to manage cash flow gaps, purchase inventory, or cover operational expenses, you can apply with this lender. 

Provided you meet all the eligibility criteria, such as strong credit score, an accurate and updated financial statements, and more… you should apply. 

Keep in mind all the costs associate with a business line of credit. And don’t forget to compare other financing options. By doing a thorough research, you can make informed decision that supports your business financial needs. 

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