Chase Business Credit Card vs. Traditional Business Loans: Pros and Cons

Chase Business Credit Card vs. Traditional Business Loans: Pros and Cons

Chase Business Credit Card vs. Traditional Business Loans: Pros and Cons

When you’re looking for financing for your business, choosing between a credit card, like Chase business credit cards, or a small business loan can seem like a tough choice. Learn everything you need to know about Chase business Ink cards versus small business loans, so you can make the right decision for your business.

Is It Easier To Get Chase Business Credit Cards or Business Loan?

It is often easier to get business credit cards than business loans, provided you— the small business owner who is applying—has good to excellent personal credit scores and sufficient income. Business credit card applications are often approved immediately for those who qualify, and business credit cards from Chase are no exception.

Some types of business financing can also be approved almost immediately. These include some online business lines of credit, business cash advances and merchant cash advances, and invoice factoring. Not all of these require excellent personal credit scores; instead the decision will largely be based on business revenues and other factors.

What does this mean for you as a business owner trying to get financing? 

If you have good or excellent  personal credit scores and you need a relatively small amount of financing (in the range of $5,000—$25,000 or less),  you may want to consider a business credit card. 

Specifically, If you want to finance purchases for a year or less you may want to consider a business credit card with a 0% intro APR.  These cards can give you the ability to finance purchases for several months to a year (depending on the introductory period) with no interest or finance charges. 

If you need a larger amount of financing quickly and your business revenues support your ability to repay a loan or advance, you may want to consider an online small business loan or financing product. These may also be a good option if you don’t have good personal credit as some online loans do not require good personal credit scores. 

Like a business credit card, your business may be able to get approved and funded quickly if you qualify. 

What Business Credit Cards Does Chase Offer?

Chase offers two main types of business credit cards: its Ink line of business rewards credit cards, and several co branded travel reward business credit cards. 

Ink cards earn cash back or Chase Ultimate Rewards points which can be used for travel, gift cards, and other redemptions.

Chase has also partnered with airline and hotel brands to offer cards that earn points and perks specifically geared toward those brands, though points are also often transferable to other programs. 

If you are loyal to a specific airline or hotel brand, a cobranded card may be a great option. Otherwise, you may want to choose a card that earns points or cash back that can be used with many different travel partners. 

CardAnnual fee/ APRWelcome offerRewards rate overview
Ink Business Premier Credit Card$195/
Pay in full card.
Flex for Business variable APR: 19.49%–27.49%.
Earn $1,000 bonus cash backafter you spend $10,000 on purchases in your first 3 months from account opening.Earn 2.5% cash back on every purchase of $5,000 or more and unlimited 2% cash back on all other business purchases.
Ink Business Unlimited Credit Card$0/
0% intro APR for 12 months from account opening on purchases.After that, 18.49%–24.49% variable APR.
Earn $900 bonus cash backafter you spend $6,000 on purchases in the first 3 months after account opening. Unlimited 1.5% cash back rewards on every purchase.
Ink Business Cash Credit Card$0/
0% intro APR for 12 months from account opening on purchases.After that, 18.49%–24.49% variable APR.
Earn $900 bonus cash backafter you spend $6,000 on purchases in the first 3 months after account opening. 5% cash back on  first $25,000 spent annually in combined purchases at office supply stores and on internet, cable and phone services;
2% cash back on the first $25,000 spent in combined purchases annually at gas stations and restaurants:
1% on other purchases.
Ink Business Preferred Credit Card$95/
21.24%–26.24% variable APR
100,000 bonus points after you spend $8,000 on purchases in the first 3 months after account opening. Worth$1,000 cash back or $1,250 toward travel rewards when you redeem through Chase Ultimate Rewards®1x point for each $1 spent.3x points total for each $1 of the first $150,000 spent annually on combined purchasesin the following rewards categories: shipping; socialmedia and search engine advertising; travel; internet,cable, and phone services (two additional points on topof the 1 point per $1 earned on each purchase).
United Business Card$0 intro annual fee for the first year, then $99/
21.99%–28.99% variable APR
Earn 75,000 bonus miles after you spend $5,000 on purchases in the first 3 months your account is open.Earn 2x mileson United purchases, dining, at gas stations, office supply stores and on local transit and commuting; 1x points on other purchases.5,000 bonus miles each account anniversary yearif you also have a personalUnited credit card.
United Club Business Card$450/
21.99%–28.99% variable APR
Earn 75,000 bonus after spending $5,000 on purchases in the first 3 months your account is open.2x miles for United purchases, 1.5x miles on other purchases. 
Southwest Rapid Rewards Performance Business Credit Card$199 applied to first billing statement/
21.49%–28.49% variable APR
Earn 80,000 points after you spend $5,000 on purchases in the first 3 months your account is open. Earn 4X points on Southwest® purchases and 2X points on purchases for your business in select categories;1x points on everything else.
9000 anniversary points each year after Cardmember anniversary.
Southwest Rapid Rewards Premier Business Credit Card$99 applied to first billing statement/
21.49%–28.49% variable APR
Earn 60,000 bonus points after you spend $3,000 on purchases in the first 3 months your account is open. Earn 3X points on Southwest® purchases, 2X points on local transit and commuting, and 1X points on all other purchases.>6,000 bonus points each account anniversaryyear.
IHG One Rewards Premier Business Credit Card$99/
21.49%–28.49% variable APR
Earn 140,000 bonus pointsAfter you spend $3,000 on purchases in the first 3 months from account opening. Earn up to 26X points total for stays at IHG® hotels and resorts; 5X total points on travel, dining, select business purchases, and at gas stations; 3X points on all other purchases.
World of Hyatt Business Credit Card
21.49%–28.49% variable APR

Earn 60,000 Bonus Pointsafter you spend $5,000 on purchases in your first 3 months from account opening. 
Earn up to 9x total points for spending at Hyatt Hotels;
Earn 2 Bonus Points spent in your top three spend categories through 12/31/24, then your top two categories each quarter:
Earn 2 Bonus Points on fitness club and gym memberships;
2 Bonus Points per $1 spent elsewhere.

*All information about the Chase Ink and other Chase business credit cards has been collected independently by Nav. These cards are not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.

Chase Business Online is available to all Chase business card customers, and it offers a variety of business-friendly tools including:

  • Integration with popular accounting software programs like Quickbooks, and year-end reporting. 
  • Alerts, along with the ability to monitor spending and due dates.
  • Free employee cards and the ability to lock and unlock cards.
  • The Chase Mobile app is also very easy to use, and can help you accomplish all these tasks seamlessly. 

What Does a Business Need To Qualify for a Chase Business Credit Card?

Here is what you do need to qualify for a Chase business credit card:

  • A business of some type, which can include a full-fledged business but also a side hustle, freelancer or contractor income.
  • Good to excellent personal credit scores. You must provide a social security number when applying and typically you need FICO scores in the range of at least 670-680 or higher.  
  • Sufficient income. Chase doesn’t publish minimum income requirements, though, and keep in mind that income may come from a variety of sources, not just the business.

Here is what you do not need to qualify for most Chase business credit cards:

  • An LLC or corporation. Sole proprietors can qualify. 
  • 1—2 years in business. Unlike some business loans, these cards are available to startups that qualify. 
  • Good business credit scores. Your personal credit will be a factor but you do not need established business credit to qualify. 
  • Business income. You may qualify based on household income rather than income specifically from the business.

What Does a Business Need To Qualify for Traditional Business Loan?

When considering applications for small business loans, many lenders will consider the following: 


Lenders want to make sure the business makes enough money (or will make enough money based on projections) to repay a loan. They may have minimum income requirements, and will often require documentation of annual revenue and/or monthly sales in the form of business checking account statements and/or business tax returns. 

Banks may also require current financial statements such as balance sheets and income statements. Businesses looking for invoice financing may need to provide an accounts receivable (A/R) report.


Traditional lenders like banks often review credit history. 

Personal Credit: While some financing options don’t need excellent personal credit, many lenders check personal credit scores. Traditional lenders have minimum credit score requirements in the range of 680-700 or higher, while online lenders might be more flexible. An initial soft credit check is common, but a full application could entail a hard credit check.

Business Credit: Lenders may review business credit reports or scores as well. Even if they don’t have minimum business credit score requirements, they will often review credit reports to see whether borrowers have excessive UCC filings, collection accounts, judgments, tax liens, or other negative information in their reports. 

Time in Business

Most lenders prefer to lend to businesses with at least 1—2 years in business. 


A business’s industry can influence a lender’s decision. Some industries like cannabis or gun stores, face challenges obtaining financing. But lenders may also prefer to lend into certain industries, or may stop lending into others if they believe they are overexposed to a particular industry. NAICS or SIC codes are often used to identify the industry.. 


Collateral serves as a tangible security against the loan. This can include assets like equipment, real estate, or even future receivables. Some loans, like SBA loans, may require the lender to access available collateral, even when collateral isn’t required as a condition of the loan. Equipment financing and other collateral-based financing may offer somewhat lower interest rates than unsecured loans.

What Are the Pros and Cons of Business Credit Cards?

As with any type of financing, there are pros and cons to business credit cards: 

Available to startupsRequire personal guarantee
Short-term low-rate financing often availableAPRs often high when used for long-term financing
Line of credit available when neededCredit limits may not be sufficient for larger financing needs
Can help build business creditGood personal credit scores usually required

*All information about the Chase Ink and Chase business credit cards featured here has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.

What Is the Average APR of a Business Credit Card?

According to the Federal Reserve, the average interest rate was 22.77% for all credit card accounts assessed finance charges, as of August 2023. 

Most credit card issuers present a range of interest rates. You’ll find out your rate when you get your card. The lowest rates tend to go to applicants with the best credit scores and solid qualifications (such as income). 

Other costs to look out for include annual fees and foreign transaction fees for purchases outside the US, or from foreign sellers. 

How does this compare to interest rates on business loans? A 23% rate not as high as some types of revenue-based financing and online lenders that may charge even more. 

Also keep in mind that low introductory interest rates on business credit cards can be helpful for short-term financing. 

What Is the Minimum Credit Score for Chase Business Credit Card?

Chase does not publish minimum credit score requirements for its Ink Cards. However, most cardholders have credit scores of at least 670—680 or higher. Some of the premium Ink cards require a credit score of 700 or higher. 

If you have a credit score below that range, you may still be able to qualify for a Chase business credit card, but it’s less likely you’ll be approved. If you are, you may be offered a card with a lower spending limit or higher interest rate.

Remember, of course, that even if you have a very high credit score, your application can be declined due to income or other factors. If you are turned down, you may want to call the Chase reconsideration line and talk with a representative. 

What Are the Benefits of a Business Credit Card Over a Traditional Loan?

Business credit cards can offer benefits over traditional loans, including flexibility, interest-free short-term financing, rewards, easy and often fast approval for many business owners, the ability to build business credit and 

Here’s a look at the benefits of using a business credit cards over traditional small business loans:


Once your business is approved for a business credit card, you can use it for any type of purchase anywhere that type of credit card is accepted. You can also use as much or as little of the credit line as you need, up to your credit limit. 

Repayment terms are also flexible. With most cards, you can make the minimum payment or pay the balance in full to avoid interest. 

Low-cost Financing

Many business credit cards offer a couple of options for accessing interest-free financing. One is through introductory offers, such as 0% APR for the first several months. This can provide a short-term, interest-free loan for your business. 

Another option is to pay the statement balance in full by the due date to avoid interest charges. As long as your card offers a grace period (and most do), this can give you up to two billing cycle’s worth of interest-free financing, depending on how you time your purchases. 

Rewards Programs

One of the distinct advantages of business credit cards is the potential to earn rewards. Many cards, including the Chase Ink, offer cash back, reward points, or travel rewards on eligible purchases. These rewards and other perks can be quite valuable. 

Easier Approval

It can be very tough for new businesses to qualify for a startup small business loan. That’s not usually the case for business credit cards. In addition, banks and other lenders that make small business loans may prefer to lend to businesses in certain industries, but not others. That’s rarely the case with business credit cards, making them more accessible to a broader range of businesses.

Build Business Credit

Most small business credit card issuers report payment history to at least one of the major commercial credit bureaus. That means that using a business credit card responsibly can help establish business credit, and if paid on time, improve your business credit scores. A strong business credit score can help your business qualify for a wider range of financing opportunities in the future.

Cash Flow Management

Business credit cards can help businesses smooth out cash flow. Many businesses struggle with uneven cash flow due to slow-paying customers, slow periods of sales, higher than anticipated expenses, or seasonal fluctuations. Business credit cards can fill that gap, allowing businesses to make purchases even if immediate funds aren’t available, and without having to apply for a business loan that can take time to get funded. 

Employee cards can make it easier to manage employee spending, and can allow the business to earn additional rewards. 

Expense Tracking and Reporting

Many business credit cards offer detailed statements and online tools that categorize and track business expenses. Purchase history can often be imported into accounting software, which can be helpful at tax time. Business credit cards are also an excellent tool for separating business and personal finances. 

Protection and Security

Credit cards are the safest way to pay for business purchases, as they offer protection in the case of fraudulent use or if goods or services aren’t delivered as agreed. They may also offer purchase protection, cell phone protection, or extended warranty coverage. 

That doesn’t mean a business credit card is always better than a small business loan. Credit cards often have higher interest rates than many traditional loans (like bank loans or SBA loans). Not every vendor or client accepts credit cards. And they aren’t a suitable choice when a business needs a large amount of money or needs a lump-sum term loan. 

Finally, most business credit cards require a personal guarantee. 

For reasons including flexibility, rewards, and ease of use, business credit cards, like the Chase Ink cards, can be an attractive option. However, for larger capital expenditures or long-term financing, a traditional loan might be more appropriate.

Is It Easy To Get a Chase Business Credit Card?

If you have strong credit and sufficient income, it’s no more difficult to get a Chase business credit card than other similar business credit cards. 

Nav can help you find credit cards based on your data. Get started now. 

The Bottom Line: Chase Business Credit Cards Vs. Small Business Loan

First, if you’re considering a business credit card, don’t limit your search to one card issuer. There are also excellent choices available from American Express, Bank of America, Capital One, 

If you’re trying to choose between a small business loan and business credit card, we’ll make it simple. 

You may not need to choose. 

As long as you can qualify for a business credit card and business loan, you can get both. Many business owners do. You can then choose which financing to use for specific purposes. With options to choose from you can pick the right type of financing for your business needs. 

Have at it! We'd love to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and protect yourself. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers.

Reviews Disclosure: The responses below are not provided or commissioned by the credit card, financing and service companies that appear on this site. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered.

Leave a Reply

Your email address will not be published. Required fields are marked *