topic Re: Chase Business Line of Credit for Start Ups in Business Credit

Chase Business Line of Credit for Start Ups

Citylights18 — Sun, 11 Sep 2022 18:37:18 GMT

Chase if you have an existing banking relationship with them might do a PG on for a business line of credit for a start up (under 2 years in business). Below is the criteria they sent me.

-A consumer and/or business credit report that is free of bankruptcy or judgments and that shows evidence of consistent on-time payments.

-FICO score of 700 or higher from the credit bureau we use when reviewing your application.

-A net annual outside income of at least 50% of the requested loan or line amount. Your net annual outside income is after-taxes earnings from a source other than your business, that also factors in your yearly business and personal scheduled debt payments.

This last one is basically saying if you have after tax earnings of 100k you could PG a business line up to 200k if you didn't have any obligations. I didn't get a clear answer on what if a portion of that net income is tax derferred (e.g. 401k contributions). I was told by the CSR that they won't counter offer so its best to stay conservative with the request.

Re: Chase Business Line of Credit for Start Ups

cashorcharge — Thu, 15 Sep 2022 00:55:20 GMT

Thanks for sharing those details..

Re: Chase Business Line of Credit for Start Ups

bizcredit11 — Thu, 15 Sep 2022 02:31:51 GMT

@Citylights18 Keep in mind Chase will also place a UCC filing on your business.

A PG is a guarantee for almost all business LOC's. AMX, PNC, WF, and BofA etc.

bizcredit11

Re: Chase Business Line of Credit for Start Ups

Vandevere321 — Thu, 15 Sep 2022 06:59:01 GMT

Great find!!

A few Data Point questions:

-will the PG be a hard pull??

-what credit bureau and fico scoring version will Chase pull?

-will the BLOC report to personal credit report?

-does this BLOC follow Chase 5/24 rule ?

Re: Chase Business Line of Credit for Start Ups

Citylights18 — Thu, 15 Sep 2022 12:41:18 GMT

@bizcredit11 wrote:
@Citylights18 Keep in mind Chase will also place a UCC filing on your business.

A PG is a guarantee for almost all business LOC's. AMX, PNC, WF, and BofA etc.

bizcredit11

This is for a less than 2 year business so just being able to get a credit line I think is pretty good.

Re: Chase Business Line of Credit for Start Ups

Citylights18 — Thu, 15 Sep 2022 13:00:21 GMT

@Vandevere321 wrote:
Great find!!
A few Data Point questions:

-will the PG be a hard pull??
-what credit bureau and fico scoring version will Chase pull?
-will the BLOC report to personal credit report?
-does this BLOC follow Chase 5/24 rule ?

I didn't ask about any of this but these are good questions to ask.

There is hardly a point of a BLOC that reports to personal credit IMO. Signature FCU BLOC does that with less than 3 years in the game. You might as well get a personal HELOC as the interest rate is cheaper and if you are using principally for real estate improvement you can write off the interest like you can with a business loan.

Re: Chase Business Line of Credit for Start Ups

babygirl1256 — Fri, 16 Sep 2022 06:42:14 GMT

Good business information . . . thanks for posting!!!