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Headway Capital Reviews: Professional Analysis & User Insights for 2022

Headway Capital is a quick and convenient funding option for small business owners.. 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
2.8
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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

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Fact Checked by: Thomas Brock, Chartered Financial Analyst (CFA) and a Certified Public Accountant (CPA)

Expert Reviewer’s Verdict

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.

Our Headway Capital review looks at features of their line of credit, how to apply, what you need to qualify, interest rates and fees, and what former customers are saying about their experience.


 

Headway Capital Online Reviews

Headway Capital scores 4.7/5 across 1,429 reviews 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 lines of credit. However, this cost stems from the company’s accessibility - the higher the interest rates, the more lenient the 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.

On the ConsumerAffairs website, Headway Capital receives 4.6 out of 5 stars across 75 reviews.

The positive reviews are related to:The negative reviews are related to: 
Fast application processDraw fee charged in some states
Convenient revolving lines of creditExpensive borrowing fees
Friendly customer serviceCredit line changes

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.

What is Headway Capital?

Headway Capital, part of Enova International, is an online lender that provides only one financial product: a business line of credit. Headway Capital caters to young but established businesses that don’t yet have access to more traditional small business loans. 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 and Cons

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
Personal guarantee required
No other loan products
Only available in certain states

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.

Finally, you will 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 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.

Written by: 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
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Thomas Brock

Fact checked by: Thomas Brock

Chartered Financial Analyst (CFA) and a Certified Public Accountant (CPA)

Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier, maintaining a dynamic investment policy designed to preserve capital, enhance profitability, and support growth.

More about me