Chase Business Loans: Worth It This Year?

(April 2024)

Chase Business Loans_ Worth It This Year

In This Article

Our Verdict

Consider a business loan relationship with Chase Bank if you seek a large, nationally present financial institution that has the monetary heft, industry expertise and geographic coverage to provide business funding to companies of myriad sizes located in the continental United States.

Chase, since August 2021, is the first bank to have a retail presence in all 48 of the contiguous United States. (The bank also maintains a significant presence in the nation’s capital.)

Don’t always expect stellar customer service, though, as the bank—like other financial behemoths, such as Wells Fargo and Bank of America—often struggles to maintain elevated levels of customer satisfaction. Neither should you anticipate full transparency from Chase, as you barely find on the bank’s website any relevant information about its business loan products.

Besides traditional business loans, Chase also takes care of you when it comes to SBA loans. As an SBA Preferred Lender, the bank has in-house expert personnel who can walk you through the SBA loan process.

Here’s other relevant information you need to know:

JP Morgan Chase
Corporate Headquarters

270 Park Avenue, New York, NY 10172

Phone Number: +1 212-464-1909

www.chase.com

Pros

  • Presence in 48 continental states
  • Varied business loan offering
  • SBA Preferred Lender
  • Large loan amounts (often exceeding $500,000)
  • Solid expertise for all kinds of business financing

Cons

  • Lack of transparency with business loan terms and conditions
  • Less-than-stellar customer ratings
  • No branches in Hawaii, Alaska and U.S. territories
  • Strict business loan eligibility requirements
  • Funding challenges for startup businesses in most cases

Who This Product Is Best For

who this product is for

Consider a Chase business loan if your business:

  • Has a proven history of profitability and liquidity.
  • Requires significant levels of funding (even above $500,000).
  • Can patiently wait for Chase’s often lengthy loan approval process (7-21 business days).
  • Already has a relationship with Chase and likes the bank’s customer service.
  • Prefers a financial institution with national coverage.

Who This Product Isn't Right For

Seek a Chase business loan alternative if your business:

  • Has less-than-stellar business credit scores.
  • Has profitability “problems” at the moment.
  • Is a “brand-new” startup with no proven operational history.
  • Appreciates transparency in the loan approval process.
  • Seeks a business lender with a “personal touch” and better-than-average customer service.

What This Product Offers

  • SBA loans

Meet your business financing needs with a guarantee from the U.S. government through the Small Business Administration, a transaction that lowers Chase’s risk when issuing you the business loan. Keep in mind SBA loans are often difficult to qualify for.

  • Equipment financing

Consider a Chase business equipment loan to get the necessary funds in order to purchase all sorts of operational tools and machinery for your business.

  • Business term loans

Consider a Chase business term loan if you need a lump sum of money you can borrow and pay back at fixed intervals—with interest, of course—over a set period of time. With Chase, you pay off the loan on a monthly basis. Repayment periods can last from few months up to 10 years or more.

  • Commercial real estate loans

Use a Chase commercial real estate loan to buy existing property—or build new property—in order to accommodate your business’s growth.

  • Business lines of credit

Consider a Chase business line of credit to cope with uncertain economic times, such as when you might struggle to predict revenue and expenses. With this product, you borrow from the line, repay the money, and borrow again—a kind of revolving business funding where you pay interest only on the amount you borrow.

Product Details

Business Term Loan

Use a Chase business term loan if your business needs to borrow a specific amount it’s comfortable paying back over a specific time period. Avail yourself of Chase draw loans and advised lines if you think these loan alternatives suit your business better than a conventional business term loan at this time.

Keep in mind that when you get a draw loan, you borrow within one year and then repay the borrowed amount—much like a business term loan. Advised lines work similarly to the draw loan except that your interest rates are dependent on the timing—and frequency—of your purchases (that is, when you make purchases during your one-year window).

Loan amount

$5,000 to over $1 million

APR

Fixed and based on negotiation

Terms

1 year to 25 years

Repayment Term

Monthly

Fees

Varies

Availability

All 48 contiguous states

Funding speed

Varies

Business Line of Credit

Seek a Chase business line of credit if you wish to meet short-term working capital needs. Upon approval, Chase grants you a line from which you can borrow within a five-year draw period. During your draw period, you make a monthly repayment of one percent of your outstanding balance.

After the five-year draw period, you cannot access funds, but must repay what you borrowed. (Terms and conditions are subject to negotiation.) Remember you pay an annual fee. However, if you borrow 40% of your line of credit on aggregate, Chase  waives the fee.

Loan amount

$10,000 to $500,000

APR

Varies

Terms

Renewable five-year term

Repayment schedule

Monthly

Fees

Varies

Availability

All 48 contiguous states

Funding speed

Varies

Commercial Real Estate Loans

Consider a Chase commercial mortgage loan to buy a commercial property, such as an office space or a warehouse—or to refinance your real estate debt or renovate an existing property. With Chase, you access all kinds of commercial real estate loans, depending on your business needs.

Keep in mind, though, that you must remit at least 20% as a down payment before Chase fronts you the rest. Also consider a Chase commercial real estate loan to finalize a new project where you apply for—and get approval for—a construction loan whereby you make interest-only payments when construction is in progress.

Loan amount

$50,000 to over $1 million

APR

Fixed and negotiable rates

Terms

7 to 10 years

Repayment schedule

Monthly

Fees

Varies

Availability

48 states

Funding speed

It depends on

SBA Loans

Seek a Chase SBA loan if your business credit is strong and your company’s finances in decent shape—not to mention your personal finances, which must also be satisfactorily high. Keep in mind you are more likely to enjoy more favorable terms and rates with an SBA loan, as the government inherently is backing it.

The application and approval processes take more time, though—so brace yourself accordingly. Chase is an SBA approved Lender, meaning you’re more likely to get an SBA loan faster through this lender. Crunch the numbers and see what SBA loan option works for you as well as how much your business needs.

Select any of the below Chase’s SBA loans, depending on your company’s needs

  • SBA Express loans for small business needs with a loan amount up to $500,000,
  • SBA 504 loans if you have larger purchases to make with a loan amount up to $12.5 million,
  • SBA 7(a) loans for your business’s general-purpose needs with a loan amount up to $5 million.

Loan amount

Up to $12.5 million

APR

Fixed and adjustable rates

Terms

Up to 25 years

Repayment terms

Monthly

Fees

Varies

Availability

48 states

Funding speed

Varies

Where This Product Stands Out

Attractive and favorable terms

Keep Chase in mind if you want a financially stable business lending institution that offers more favorable terms and conditions. For example, you can repay Chase’s business term loan for up to seven years. If you apply for Chase’s equipment loan, you can choose between a draw loan or a standard draw loan.

Multiple financing options

Think of Chase if your business has multiple financing needs, as the bank offers everything from equipment financing and term loans to SBA loans, business lines of credit, and commercial real estate loans. Therefore, choose the appropriate Chase business loan for your company so you can keep it running, irrespective of the nature—or amount—of your corporate funding goals. Also, think about opening a Chase business checking account (if you haven’t already), as a Chase banking relationship is a prerequisite for business loan application.

Higher loan amounts

Don’t hold back when seeking large loan amounts from Chase—you bet, the bank can manage it. (Don’t forget Chase is a financial services behemoth, so it has the balance sheet needed for all types of funding commitments.)

How much business funding do you need? $500,000 or $10 million—or more? No matter what, Chase can take care of you. Talk to a Chase business banker to understand loan options and eligibility requirements.

Multiple SBA loan options

Consider Chase for your SBA funding needs, as the bank not only offers various SBA loan options but also is an SBA Preferred Lender. You can receive loan approval up to $12.5 million on all SBA funding options combined.

Where This Product Falls Short

Undisclosed fees and terms online

Don’t count on Chase to be transparent about its loan terms and fees online—the bank has proven over the years to be as quiet as a church mouse on the subject. Your best bet is to go to a Chase branch or contact a Chase business banker to discuss the matter when you’re ready to seek financing from the bank.

Not available in a few states

Look for another business lender if your company operates in Hawaii, Alaska or the U.S. territories. Chase isn’t (yet) present in those jurisdictions.

Unimpressive customer reviews

Keep your expectations low when it comes to customer satisfaction, as Chase still has a long way to go in that department. No wonder the bank receives a below-average rating on Better Business Bureau and TrustPilot.

You may have to exercise patience and swallow your pride if you try to contact Chase’s customer service. (The call queue is rarely short.)

Longer repayment term can mean paying more

Expect to pay more interest when you choose longer repayment terms. Review the rate Chase charges you before signing the loan agreement, a crucial step especially if you apply for a loan amount with a repayment term up to 84 months,.

How to Qualify for This Product

Contact Chase for more details on business loan eligibility criteria, as Chase business bankers are via the company’s website publicly tight-lipped on the subject.

Having said that, the below are standard requirements for any business loan, whether you get it from Chase or another lender:

Credit History

Keep a 670+ FICO score to enjoy the lowest rates  and best terms and conditions from Chase. Have a lower credit score? Discuss things with a Chase banker and explore together the conditions under which you can get a Chase business loan.

Longevity in Business

Remember that Chase likes businesses that have a proven history of profitability and operational longevity (2 years minimum)—but don’t despair if you have a startup, as Chase may approve your business loan if you have the right relationship with the bank.

Financial Statements

Prepare to show Chase a full set of financial statements that ideally paint a profitable picture of your company. Expect to demonstrate annual revenue starting at $100,000 in order to qualify for a basic business loan at Chase—but keep in mind the higher the business loan amount you seek, the larger the business revenue requirements are. Logical, right?

How to Apply for This Product

Make sure to include the following in your paperwork when applying for a Chase business loan.

  • Recent bank statements
  • Date of business establishment
  • Financial statements
  • Recent personal and business tax returns
  • Address, social security number, SSN, etc.
  • Type of ownership and tax identification number
  • Residency information
  • Date of birth
  • Full name, home address, telephone

(The final list of requirements may vary based on the specific business loan you seek as well as the location you’re applying from.)

Alternatives to This Product

Wells Fargo

Consider Wells Fargo if you have limited business financing needs, as the bank provides far fewer options than Chase. (Wells Fargo’s business loans revolve around SBA loans, business lines of credit and commercial mortgages, with loan amounts ranging from $5,000 to $5,000,000.

Credibility Capital

Choose Credibility Capital if you need fast business funding from an alternative lender whose eligibility criteria are less stringent than Chase’s. Access up to $500,000 in business term loan proceeds (approved within three days) and repay within one to five years at 8.9%+ interest.

Consider this business lender for your business funding needs (loans and lines of credit) if you have a personal credit score of 650+ and maintain an annual business revenue of over $200,000.

American Express Business Blueprint

Think of American Express Business Blueprint if you need a  business line of credit—and meet the follow requirements:

  • Be at least 18 years of age
  • Have started your business at least a year ago
  • Have a FICO score of at least 640 at time of application
  • Have an average monthly revenue of at least $3,000

Upon approval, you receive $2,000-$250,000 that you repay over a 6-, 12-, or 18-month term with a corresponding monthly fee.

Customer Reviews

Don’t expect stellar customer service from Chase unless you’re a big, yearslong business client. A diverse spectrum of online reviews ranging from BBB to TrustPilot paints a bleak picture chronicling the testimonies of disgruntled customers who—among other complaints—experienced myriad problems related to their checking, savings or credit card accounts, problems they supposedly reported to Chase but that the financial giant never dared to solve satisfactorily. 

Methodology

We reviewed Chase business loans based on 35 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Chase business loans based on the weighting assigned to each category:

  • Loan cost: 35%
  • Loan details: 25%
  • Customer experience: 20%
  • Eligibility and accessibility: 10%
  • Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender.

Finally, we evaluated Chase business loans customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

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