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Who are Chase business loans best for?
Chase business loans are ideal for companies with at least two years in business. Chase might extend loans to businesses newer than two years, but they need at least $500,000 of Chase debt to be eligible.
Chase business loans also make sense for business owners who don’t need larger loans or don’t plan to make extra payments. Prepayment penalties apply for term loans and commercial real estate financing over $250,000.
Chase might also be a fit for business owners who prefer in-person service over fast funding. You can get help with Chase business loans at a branch location, but funding can take up to two weeks.
Who might Chase not be a fit for?
Chase isn’t a fit for business owners who want to avoid extra costs. Some of its products include fees, such as annual fees, origination fees and prepayment penalties.
If you prefer fast funding over branch access, Chase might not be the right choice. It can take up to two weeks to fund its loans, while some online lenders offer funding within one business day.
Types of business loans available
Chase offers several types of business financing.
Business lines of credit
Chase’s business line of credit offers $10,000 to $500,000 for existing Chase for Business customers. You can access funds for five years with potential renewals and borrow as much as you need up to the limit. Interest rates are variable.
Borrowers pay an annual fee of up to $750. The fee can be waived after your first year if you use at least 40% of your available credit. Using a lot of your available credit might hurt your score.
Business term loan
Chase offers business term loans up to $500,000. Borrowers make monthly installment payments over a set repayment term, typically up to five years. No origination fees apply, but there are prepayment penalties on loans over $250,000.
As with other Chase products, you generally need at least two years in business with the same majority ownership to qualify for a business term loan.
Real estate loans
Chase’s commercial real estate loans start at $50,000 and let you finance up to 90% of the property’s value, depending on financing options. Repayment terms are as long as 25 years.
Interest rates can be fixed or variable. Chase also offers construction loans with interest-only payments during draw periods.
SBA loans
Chase offers SBA 7(a) and 504 loans. You can use SBA loans to expand your business, purchase inventory, consolidate debt and other purposes. SBA 7(a) loans are up to $5 million and might offer flexible terms.
SBA 504 loans let you buy real estate, acquire construction equipment or refinance debt. You can borrow up to 90% of the project cost, and repayment terms are as long as 25 years.
Chase business loan details
The details of Chase business loans vary by product, but its non-SBA loans have some common features. Generally, loans are up to $500,000 with repayment terms as long as five years. Interest rates can be fixed or variable, depending on the product.
Chase business credit lines have relatively low interest rates. Some competitors use a factor rate, which can mean higher borrowing costs, particularly for shorter-term loans. However, Chase also adds fees, including origination fees, annual fees and prepayment penalties, to its products.
Funding might take up to two weeks for Chase business loans. Some competitors offer funding within one business day.