Headway Capital is an online lender that provides only one financial product: a business line of credit. Similarly to other alternative lenders, Headway Capital caters to young but established businesses that don’t yet have the access to traditional, often cheaper, forms of financing. Their lines of credit are excellent options for business owners that require flexibility and a product that they can use again and again for a variety of business expenses.
Headway Capital Pros
Headway Capital Cons
Headway Capital Loan Features
Headway Capital is known for its business lines of credit - the only financial product on their menu. Therefore, in this Headway Capital review, we are going to primarily focus on revolving credit lines.
Business Line of Credit
With a business line of credit, you would have a predefined maximum borrowing amount, known as the credit limit. You can then repeatedly draw on the line of credit, as long as the total borrowed amount doesn’t exceed the credit limit. Any interest charges would only be applied on the amount of credit being used.
The lines of credit offered by Headway Capital are revolving. This means that as you pay off your balance, you free up more credit that you can use again.
| Term length |
12, 18, or 24 months |
| Repayment frequency | Weekly or monthly |
| APR range | 40% - 80% |
| Min - Max amount | $5K - $100K |
Headway Capital Interest Rates and Fees
With Headway Capital business loans, interest rates and fees you can expect to pay can vary quite significantly, depending on the state you live in.
Business Line of Credit
With lines of credit, you would only have to pay interest and fees on the outstanding credit. In addition, your state will determine whether you have to pay a 2% draw fee every time you use your Headway Capital funding. The states that don’t have this fee include Georgia, Colorado, New Jersey, Indiana, and Oklahoma.
| Origination Fees | None |
| Prepayment Fees | None |
| Draw Fees | 0% or 2% depending on the state |
| Late Payment Fees | None |
| Interest Rates - Minimum | 0.11% daily or 3.3 monthly |
| Interest Rates - Maximum | 0.22% daily or 6% monthly |
How To Qualify for a Headway Capital Loan?
As long as you have not reported bankruptcy over the past 12 months, Headway Capital will consider your application. While both your personal and business credit scores are checked, the final decision will be based on many additional factors. As such, you may still qualify for a Headway Capital loan even if you have below average credit. At the same time, your application may be declined for reasons other than your credit score.
| Minimum Credit Score | 550 |
| Minimum Annual Revenue | $50K |
| Minimum Time in Business | 12 months |
It is worth noting that Headway Capital currently lends to businesses in the following 26 states: Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
In addition, Headway Capital does not lend to businesses working in the following industries:
Headway Capital Loan Application Process
YThe application process for Headway Capital small business loans is fairly straightforward and consists of three steps: “Account Creation”, “Business and Financial Information”, and “See What You Qualify For.” The entire online application will take you only a few minutes.
1. Account Creation
To begin with, you will be asked to provide your desired credit limit and specify the primary use of the funds. You can choose between:
Next, you would need to provide some basic business details, such as its name and contact information. You would also need to fill out your first and last name and confirm that you are authorized to take out funding on behalf of the business.
Finally, you would be asked to enter the email address and a password you would like to use for your Headway Capital account.
2. Business and Financial Information
In the second step of the application process, you would be asked to fill out some additional business and financial details, such as what industry your business is in, how long it has been in operation, gross business revenue, and the number of employees. You would also need to specify the legal entity type of your business and its Tax ID.
Next, you would be asked to share your own contact information, your primary source of income, and the Social Security number.
Finally, you would need to select whether you prefer to make weekly or monthly payments, consent to electronic communications, and continue to the third, last step of the application.
3. See What You Qualify For
Once you complete the application, you will receive an instant pre-qualified offer. You will then be asked to provide business bank statements for the past three months. The Headway Capital underwriting team will review the provided information and conduct a soft pull of your credit, so your credit score won’t be impacted.
After underwriting is complete, typically within four hours, you can expect to receive an offer from Headway Capital. If you decide to move forward, you would need to sign a contract and select your repayment terms and initial draw amount.
Once the contract is signed, you can expect to receive the funds within one business day. At this stage, Headway Capital will also conduct a hard credit pull, which would temporarily impact your credit score.
Headway Capital Customer Support
Headway Capital’s customer service representatives can be accessed via email or phone between 8:30 am and 6:00 pm CT, Monday through Friday. The company’s collections department is available between 8:30 am and 5:00 pm.
The website also contains an FAQ section that provides lots of useful information to new customers.
Headway Capital Support Options and Resources
Headway Capital Customer Support Reviews
Headway’s Capital customer service representatives are known to be knowledgeable, friendly, and transparent. Overall, most clients are happy with the company’s customer support, - in fact, many of Headway Capital reviews mention the service as one of the advantages of working with the company:
Headway Capital Online Reviews
Headway Capital scores 4.7/5 on Trustpilot, with most customers being extremely satisfied with the service provided by the company. Most customers highlight a quick and easy application process, responsive customer service, and the convenience of the company’s revolving lines of credits.
The few negative Headway Capital reviews almost solely focus on the high interest and fees associated with Headway Capital’s lines of credits. However, this cost stems from the company’s accessibility - the higher interest rates, the more lenient qualification requirements they are able to offer.
Nonetheless, expect that borrowing with Headway Capital will be expensive for your business. Luckily, the company is incredibly transparent about their rates, so you will know exactly what to expect before signing the final contract.
In addition, some clients dislike the fact that Headway Capital reserves the right to change the amount of credit available during periodic account reviews.
| The positive reviews are related to | The negative reviews are related to |
| Fast application process | Draw fee charged in some states |
| Convenient revolving lines of credit | Expensive borrowing fees |
| Friendly customer service | Credit line changes |
Headway Capital Perks and Bonuses
Apart from somewhat high rates and fees, Headway Capital presents an attractive alternative option for financing your small business needs.
Flexibility
Once great thing about revolving lines of credit is the fact that you can draw the amount you need (within the credit line limit), whenever you need it most. You will also have the freedom to select your preferred repayment frequency or even only pay interest on the amount borrowed.
Transparency
Headway Capital is transparent about its rates and provides a sufficient amount of information about their products and qualification criteria. You may have to search for some specific product information, but that is to be expected given that the terms vary considerably from state to state. It is worth noting that Headway Capital lists their rates in terms of monthly interest, which might create a false impression that the rates are lower than they actually are.
Technology
You can apply for Headway Capital funding directly through their website, which means a faster and easier application process. Borrowers can also benefit from the autopay functionality: once you draw funds from your credit line, parts of the balance (plus interest) will be automatically deducted from your bank account according to the repayment frequency you selected.
Final Thoughts
All in all, Headway Capital provides reliable revolving lines of credit for business owners that have subpar credit. The company is known for its quick and easy application process, lenient eligibility criteria and flexible loan terms, and friendly and helpful customer service.
While somewhat expensive, Headway Capital loans present a great financing option for startups and small businesses in need of quick access to working capital.
