Chase Business Loans full review
If you desire the expertise and advantages provided by a major banking institution, consider exploring Chase Loans.
With over 4,700 locations across the country, Chase is one of the largest banks in the United States. Before merging with J.P. Morgan and Co. in 2000, Chase was known as The Chase Manhattan Corporation.
Chase offers a variety of conventional and SBA business lending options in the 48 contiguous states. They have assets of over $2.6 trillion, making them a reliable and well-established bank.
While Chase does not publicly disclose its lending criteria, a good credit score and a long-standing relationship with the bank can increase your chances of securing a small-business loan with favorable terms and rates.
If you’re interested in learning how to apply for a business loan from Chase, continue reading our review.
How Do Chase Business Loans Work?
Chase provides small company term loans starting from $5,000 with repayment periods ranging from 12 to 84 months. While specific interest rates and fees are not publicly disclosed, the monthly payments are fixed.
Chase offers two different lines of credit for business owners. The main difference lies in the maximum borrowing amount:
- Business lines of credit offer $10,000 to $500,000 with a 60-month term that is renewable if there is still an outstanding balance at the end of the term. Monthly interest and at least 1% of the outstanding balance or $100, whichever is greater, must be paid.
- Larger lines of credit start at $500,000 and have terms ranging from 12 to 24 months. After the initial term, they can be extended. Interest-only payments are required each month.
Chase also offers SBA loans, which are given through partner lenders and backed by the Small Business Administration. SBA 7(a) loans allow borrowers to borrow up to $5,000,000, while SBA Express loans offer smaller sums up to $500,000. The specific interest rates for these loans are not publicly available.
Chase also allows the use of SBA 504/CDC loans for the purchase of commercial real estate, building projects, or equipment. These loans can also be used for debt refinancing. The maximum amount for Chase SBA 504 loans is $12,500,000, and borrowers can borrow up to 90% of the project’s cost or the value of their collateral. The maximum term is 20 years with interest rates around 3%.
Benefits of Chase Business Loans
Flexible Terms
Chase offers flexible repayment terms for its business loans, setting itself apart from many other banks. Business term loans from Chase have a maximum repayment period of seven years (84 months), while other banks usually have a maximum period of five years (60 months).
Business owners who need to quickly purchase various pieces of equipment, such as for furnishing a new office, can benefit from the flexibility of a draw loan.
Multiple Financing Options
Chase provides a wide range of financing options for business owners, including SBA loans, term loans, lines of credit, and commercial mortgages. This variety of choices makes it easier for borrowers to select a product that best suits their needs. For example, for financing a new building, business owners can consider both SBA 504 loans and commercial real estate loans.
How to Apply for Chase Business Loans
If you’re interested in applying for a business loan from Chase, check out our article on how to apply for Chase.
