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Putting a business line of credit to work

Is your business growing? Seeking capital for short-term expenses? Preparing for the unexpected? A line of credit may be the solution. Learn when a line of credit might be the right financing option for you.

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Everyday 401(k), infographic on Putting a business line of credit to work.

Putting a business line of credit to work

Is your business growing? Seeking capital for short-term expenses? Preparing for the unexpected? A line of credit may be the solution. Learn when a line of credit might be the right financing option for you.

5 ways to use a business line of credit

A line of credit can be an essential and cost-effective financial tool for your business.

  1. Business growth
  2. Regular (or irregular) inventory needs
  3. Purchasing power
  4. Seasonal cash flow
  5. Preparation for the unexpected

“I used a line of credit to pay bills while I wait to receive client payments. I can generally pay it off near the end of the month when the client payments come in.”

Two tools, one powerful combination

A business line of credit is a loan with built-in flexibility. Like a credit card, it offers you the ability to use funds, pay and repeat. Used together, a business line of credit and a business credit card complement each other — providing options when and how you need them.

Business line of credit + Business credit card

Credit limit

Depending on your business needs, a business line of credit may offer you some additional purchasing power, with limits ranging between $10,000 and $150,000 or sometimes higher.

Rewards

Like rewards? A business credit card would be a good option for your business expenses. Many business credit cards offer rewards on purchases made for your business that you can redeem for cash back, travel and more.

Interest rate

Looking for a lower interest rate? A business line of credit may be a better fit for you because the rates tend to be lower. Interest accrues on only the amount you draw from your line. As you pay it back, that amount becomes available to draw from again.

Renewal cycle

To balance the cash flow needs of your business, you can leverage different financial tools that work well together. A business line of credit generally offers a fixed term, while a business credit card can remain active as long as you stay in good standing.

Payment method acceptance

A business line of credit is a better option for expenses like property leases and payroll, for which a business credit card is not traditionally used.

“We use the Chase Ink® card every single day. I really love the flexibility of the rewards points because we can redeem them on gift cards for our clients or our employees.”

— Allison Eden, Chase for Business customer, compensated

Allison Eden Studios

Application checklist

Applying for a line of credit might be easier than you think. Before you start, it’s helpful to have key business and financial documents ready.

You may be asked to provide:
  • Personal tax returns
  • Business tax returns
  • Other financial statements

“I am a physician, and my professional liability insurance payment comes due once a year. I use a line of credit for that.”

Is it time to get a line of credit?

Chase offers business financing when you need it. Speak with a business banker at your nearest Chase branch to apply today.

Learn more about earning rewards on all your business expenses with Chase Ink business credit cards.

*Quotes sourced from “Exploratory Research: Line of Credit Usage,” Chase Insights, October 2017. For informational/educational purposes only: The views expressed in this article may differ from other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone, and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions, and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. Participants compensated. All lines, loans, leases and renewals are subject to credit approval. Lines will be evidenced by Chase’s standard documentation. Restrictions and limitations apply. JPMorgan Chase Bank, N.A. Member FDIC. ©2022 JPMorgan Chase & Co.

 

Chase offers business financing when you need it. Speak with a business banker at your nearest Chase branch to apply today.

Learn more about earning rewards on all your business expenses with Chase Ink business credit cards.

 

For informational/educational purposes only: The views expressed in this article may differ from other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone, and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions, and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.

Participants compensated.

All lines, loans, leases and renewals are subject to credit approval. Lines will be evidenced by Chase’s standard documentation. Restrictions and limitations apply.

JPMorgan Chase Bank, N.A. Member FDIC. ©2022 JPMorgan Chase & Co.