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Headway Capital Review

If you are a small business owner looking for a quick and convenient funding option, Headway Capital is the ideal financing opportunity for you. With its easy application and low borrower qualifications, the lender presents a viable alternative to banks, credit unions, and other traditional lenders.

headway capital review
headway capital review
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Min. Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K - $100K
Loan Repayment
Loan Repayment 12-24 months
Tetiana Sitiugina-Babiuk
Independent writer and content strategist

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.

Summarized Ratings

This parameter considers loan terms, repayment optionality, and loan limits. For each financing arrangement offered, each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall loan features score.

Headway Capital has the lowest possible score for Loan Features, a mark of 1.0. This worst-in-class rating reflects low-end loan limits (< $250K) and minimal information regarding its loan terms and repayment options.
Headway Capital Pros
Quick application and funding
Low borrower qualifications
Flexible working capital
No prepayment penalties
Only pay interest on the money you use
Helpful customer service
Headway Capital Cons
Relatively low limits
Additional fees
Rates can be expensive
No other loan products
Only available in certain states

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:

  • Gaming
  • Gambling
  • Illegal Substances
  • Pornography
  • Multi-level Marketing
  • Lending
  • 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:

  • Business Expansion
  • Buy Inventory or Supplies
  • Cash Flow or General Working Capital
  • Debt Consolidation
  • Make Payroll
  • Marketing or Advertising
  • Pay Rent
  • Purchase Equipment
  • Taxes
  • Other

  • 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

  • Phone or email customer service, 8:30 am - 6:00 pm CT, Monday through Friday
  • Collections department, 8:30 am - 5:00 pm CT, Monday through Friday
  • FAQ section on the website
  • 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:

  • “Easy, fast, and customer service has been great. Been using them for 5 years now and very happy.”
  • “Customer service was very helpful with moving forward with the loan.”
  • 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.


    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.


    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.


    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.

    About the Author

    Tetiana Sitiugina-Babiuk

    Independent writer and content strategist

    Tetiana Sitiugina-Babiuk is an independent writer and SEO strategist helping a broad range of international clients to convey their stories for over five years.

    More about me