LOANS & FINANCING
Chase business line
of credit

A business line of credit is a revolving credit account that gives you access to cash to use when you need it. It works similar to a credit card where you have a designated amount available to use. Interest only accumulates once you borrow (or draw) from the your line. You can borrow as much and often as you need up to your designated amount. As you pay down your balance, you free those funds up to be used again when needed.

A line of credit is great way to cover many of your business needs including a rainy day fund for emergency expenses, planned expenses such as purchasing next season’s inventory, or to cover cash flow expenses during a slow season. Discover how some owners have used a Chase Business Line of Credit to reach their business goals.

A business line of credit is a revolving credit account that gives you access to funds for a period of time. You can borrow from your available funds, repay it and borrow again as often as you need during that period of time. You pay interest and make minimum monthly payments only based on how much of the line you’ve used and while you use it.

A loan is when you borrow one lump-sum amount and you make scheduled monthly principal and interest payments until it is paid back.

You can learn more about the difference between these in the Chase Knowledge Center.

Prime is the base level interest rate that a bank charges on its credit lines. It will change based on the rate set by the Federal Reserve.

SOFR is the 1-month Secured Overnight Financing Rate (SOFR) that is used as a reference interest rate for loans and derivatives. It’s based on transactions in the Treasury repurchase market.

Yes. You will see an inquiry on both your personal and business credit reports.

Yes, anyone with 20% or more ownership of the business must guarantee the debt in the case of default.

Chase only offers secured lines of credit.

A Business Line of Credit is typically for 5 years. At the end of the 5-year term, you’ll have another 5 years to repay any outstanding principal and interest. You may also be eligible to renew the line.

A Commercial Line of Credit is up to 1-2 years with the potential to renew. The actual term length will be determined during the application/offer process.

Yes, Chase is a preferred provider of SBA loans and express lines of credit. We may review your application to determine if you are eligible for SBA credit.

If you would like to apply for a loan directly through the SBA, the Chase Knowledge Center has information that can help you.

Depending on your Business Banking deposit account balances, with deposit-based relationship pricing, you may be eligible to earn an interest rate discount of .4 to 1.2% on new business loans and lines of credit of +$500,000 with our Relationship Pricing Program. Speak to a banker for more details.

To be approved, your business must be at least 2 years old and under the same majority ownership for at least 2 years.

Other requirements for a line of credit are:

• Those responsible for repaying the line of credit should have a consumer and/or business credit report that’s free of bankruptcy or judgments and show evidence of consistent on-time payments. (If you would like to know more about the information on your consumer credit report, you can request one free copy each year — just visit AnnualCreditReport.com to find out how.)
• Your primary business address is in any U.S. state except Alaska and Hawaii.
• You’ll only use the funds for business purposes.
• Depending on the amount you request, additional requirements may apply.

Meeting these requirements doesn’t guarantee you’ll be approved. If you don’t meet these requirements, you can still apply, but you should know that we’ll do a hard inquiry on your personal and business credit during our review. This could impact your credit score and your ability to get another type of credit.

Before you apply:

• If you have a freeze on your credit report, contact Experian^® and TransUnion^® to unfreeze it before you apply.

During your application, you’ll need to provide us with:

• Your personal monthly housing payment
• Your business’s annual gross revenue from the last fiscal year (rounded to the nearest dollar)
• How many people work for your business, include employees and contractors
• The date you became the business owner
• How much you want to borrow
• We’ll reach out if we need additional information after you submit your application

Multi-owner companies:

• Any person or entity that owns 20% or more of the business is considered a beneficial owner and will need to provide information to complete the application.
• Yes, all beneficial owners must guarantee the debt in the case of default.
• All beneficial owners will need to provide consent for a hard credit inquiry, confirm the other beneficial owners and provide their personal monthly housing payment
• If any beneficial owners have a freeze on their credit report, they should contact Experian^® and TransUnion^® to unfreeze it before you apply.

These documents are often needed to process an application for a line of credit. However, the actual documents you’ll need may vary depending on how much you apply for and your current banking relationship with Chase. We’ll notify you of any documents we do need.

• Taxpayer ID or Social Security Number
• Evidence of Good Standing with Secretary of State
• Most recent year’s business financials like Income Statement, Balance sheet
• Number of workers - this includes employees and active contract workers
• Articles of Incorporation or Articles of Organization
• Tax transcript - 4506-C or 8821, as requested
• Business Tax Return and Personal Tax Return

You can learn more about these documents and what they include by visiting the Chase knowledge center.

Get started by calling your Business Relationship Manager if you have one, or visit a Chase branch near you.

For less than $10,000, consider a Chase Business Credit Card.

Once we have all of the information we need, we do our best to get a decision within a couple of days.

If you’re approved, you’ll sign your agreement to finalize your line of credit. Chase may need additional documents from you before we can finalize your agreement.

Be sure to have your Chase Business Banking Checking account ready to transfer funds from your line when you want to use them. You can choose to take money out immediately after the line of credit is finalized.

For lines of credit under $500,000: When you want to use your line of credit, simply sign into your Chase.com account to transfer the amount you need from your line of credit to your Chase Business Banking account.

For lines of credit over $500,000: Sign in to Chase.com to transfer funds from your line to your Chase Business Banking account or reach out to your Business Relationship Manager and they will begin the funds transfer process for you. We recommend you keep your fund availability schedule in mind when planning to use your line.

For a Business Line of Credit: You’ll be charged an annual fee of 0.25% of your approved line ($200 min to $750 max), whichever is greater. Your first fee will be charged when you sign your agreement.

After the first year, your annual fee will be waived if your 12-month average use is at least 40% of your credit line.

For a Commercial Line of Credit: There is a booking fee of 0.15% of your approved line amount ($3000 max)

For a Business Line of Credit: The minimum monthly payment is your accrued interest plus 1% of the outstanding balance or $100, whichever is greater.

For a Commercial Line of Credit: The minimum monthly payment is your accrued interest on the outstanding balance. If there is no outstanding balance, then there is no minimum monthly payment.