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Headway Capital Pros
Headway Capital Cons
Headway Capital Loan Features
Headway Capital offers business lines of credit up to $100,000. It takes just a few minutes to apply, and if approved, funds can be in your account within one business day. There are no hidden fees, and repayment terms are 12, 18, or 24 months.
With a business line of credit, you 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.
| 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 can vary quite significantly, depending on the state you live in.
With lines of credit, you only 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.
| Rate/Fee | Amount |
| 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
To qualify for a line of credit from Headway Capital, you need to have been in business at least six months and have $50,000 or more in annual revenue. Your credit score should be no less than 550, but Headway Capital does base their decision on many factors, not just credit. You also cannot have any reported bankruptcies over the past 12 months in order to get a Headway Capital loan.
| Minimum Credit Score | 550 |
| Minimum Annual Revenue | $50K |
| Minimum Time in Business | 12 months |
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
The application process for Headway Capital small business loans is fairly straightforward and consists of three steps: Creating your account, submitting business and financial information, and seeing what you qualify for. The entire online application will take you only a few minutes.
1. Account Creation
When you create your account, 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 will need to provide some basic business details, such as its name and contact information. You will 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.
2. Business and Financial Information
In the second step of the application process, you will 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 will also need to specify the legal entity type of your business and its tax ID.
Next, you’ll be asked to share your own contact information, your primary source of income, and your Social Security number.
Finally, you’ll select whether you prefer to make weekly or monthly payments and consent to electronic communications.
3. See What You Qualify For
Once you complete the application, you will receive an instant decision. If you’re pre-qualified, you’ll 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 official 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 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 useful information to new customers.
Headway Capital Customer Support Reviews
Headway 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 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 Perks and Bonuses
Apart from somewhat high rates and fees, Headway Capital presents an attractive lending option for financing your small business needs.
Flexibility
One huge perk of revolving lines of credit is you can draw the amount you need (within the credit line limit), when you need it most. With Headway Capital, you get to choose your repayment period, and as with all lines of credit, you only pay interest on the amount you use.
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.
