Headway Capital Review

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Headway Capital

Funding amount

$5,000 to $100,000

Term

12, 18, or 24 months

Min. credit score

625

Time to funding

Within 1 business day after approval

Headway Capital is an online lender that offers flexible lines of credit to small businesses. What makes them particularly appealing is their transparent pricing and repayment terms, which aim to avoid the usual headaches associated with securing business finance. Plus, with online applications and fast funding, they make the process as smooth and hassle-free as possible.

Pros

  • Fast funding time
  • Low minimum credit score requirement
  • Just 1-year minimum time in business required

Cons

  • Lower maximum loan amount
  • Draw fees may apply
  • Not available in all states

Headway Capital

Apply through Lendio How it works

Funding amount

$5,000 to $100,000

Term

12, 18, or 24 months

Min. credit score

625

Time to funding

Within 1 business day after approval

Headway Capital is an online lender that offers flexible lines of credit to small businesses. What makes them particularly appealing is their transparent pricing and repayment terms, which aim to avoid the usual headaches associated with securing business finance. Plus, with online applications and fast funding, they make the process as smooth and hassle-free as possible.

Pros

  • Fast funding time
  • Low minimum credit score requirement
  • Just 1-year minimum time in business required

Cons

  • Lower maximum loan amount
  • Draw fees may apply
  • Not available in all states

Loan offerings through Headway Capital.

Headway Capital offers lines of credit to small businesses. Instead of a traditional loan, a line of credit from Headway Capital grants small businesses the flexibility to withdraw funds up to their limit as needed, making it a superb option for managing cash flow or handling unexpected expenses.

Headway Capital line of credit quick facts
Loan amount range$5,000 to $100,000
Time in business1 year
Minimum credit score625
Minimum annual revenue$50,000
Repayment scheduleWeekly or monthly
Fees2% draw fee in most states
Funding speedWithin 1 business day after approval

See if your business is eligible for financing.

How much money are you looking for?

Things to consider.

Quick funding time.

One of the standout features of Headway Capital is its quick funding time. Once your application is approved, funds can be available in your account in just one business day. This speed is particularly beneficial for small businesses that need immediate access to cash to take advantage of a time-sensitive opportunity or to address unexpected financial needs.

Smaller loan amounts.

While Headway Capital’s maximum loan amount of $100,000 might be sufficient for many small businesses, it’s important to consider that some enterprises might require larger sums of money to achieve their goals. Whether it’s for significant expansions, large-scale inventory purchases, or extensive marketing campaigns, companies seeking higher funding amounts may need to explore additional financing options.

On the plus side, the minimum credit line (and draw amount) is $5,000. Smaller businesses will appreciate this lower threshold, which can still make a huge difference in funding a new project, marketing plan, or inventory purchase.

Fees and interest rate.

When assessing Headway Capital’s offering, it’s crucial to keep in mind the fees attached to their lines of credit, including a 2% draw fee that applies each time you withdraw funds. Although these fees can increase the overall cost of borrowing, they are typically clearly outlined in your agreement, ensuring there are no surprises down the line.

Interest rates are also a vital aspect to consider. They can vary based on your business’s creditworthiness and financial strength, so it’s essential to understand how they impact your total repayment amount. Headway Capital offers a simple interest rate that compounds daily. There are no prepayment penalties.

Borrower-friendly requirements to get a line of credit.

Headway Capital sets itself apart with borrower-friendly requirements for obtaining a line of credit, making financial support more accessible for a diverse range of small businesses. Applicants need a minimum credit score of 625 and a minimum time in business of at least one year, which are relatively low compared to many other lenders that tend to set the bar higher. This inclusivity extends to the minimal operational history requirement of just one year, which opens doors for relatively new businesses that might still be in the early stages of their growth trajectory but require funding to take the next step.

Flexible repayment options.

One of the most appealing aspects of Headway Capital’s lines of credit is the flexible repayment options available to borrowers. Businesses can choose from 12, 18, or 24-month terms, depending on their specific needs and financial situation. This level of flexibility ensures that businesses can plan their finances effectively, with predictable weekly or monthly payments that can be easily integrated into their budgeting processes.

Not available in all states.

Regrettably, Headway Capital does not offer its services in all 50 states. Ineligible states are Arkansas, Connecticut, Michigan, Montana, North Dakota, Nevada, Rhode Island, South Dakota, and Vermont. This limitation means that some businesses might not be able to access Headway Capital’s financial products, depending on their location. If you’re considering applying for a line of credit with Headway Capital, it’s essential to first check if they operate in your state. This can be easily done through their website, where they list the states where their services are available. 

Excellent third-party customer reviews.

In addition to fairly competitive terms and borrower requirements, Headway Capital’s reviews on Trustpilot are excellent at 4.7 out of 5-stars.

93% of these reviews categorize Headway as either “excellent” or “great.” Customers describe the application process as quick and easy, and Headway has also built a reputation for solid customer service. 

Evaluation

Headway Capital is best for:

Where Headway Capital might fall short:

How to apply for financing with Headway Capital through Lendio.

  1. Complete Lendio’s online application form: You will complete a brief online application on Lendio’s website. The form asks for basic information about your business, such as its name, how long it’s been in operation, your monthly revenue, and the amount you’re looking to borrow.
  2. Documentation submission: Alongside your application, you will be asked to submit documents that verify your business’s financial standing. These could include recent bank statements, income statements, balance sheets, and tax returns. Having these documents ready in advance can speed up the process.
  3. Review and acceptance: Once your application is submitted, Lendio will match you with potential lenders that fit your needs. If Headway Capital is a good fit for your financing requirements, you will receive an offer outlining the loan terms. Review these terms carefully to ensure they align with your business goals and repayment capabilities.
  4. Finalize the deal: If you decide to proceed with Headway Capital, you will work directly with their team to finalize the loan details.

The bottom line.

Headway Capital, with its combination of flexibility, speed, and accessibility, provides a compelling option for small businesses navigating the often complex terrain of financial services. It stands out for offering quick funding solutions, accommodating borrowing requirements, and flexible repayment terms, all of which are critical factors for small businesses looking for responsive and adaptive financial resources.

Ready to compare Headway Capital with other financing options? Check your eligibility and get multiple financing offers for your small business in one place.

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (October 19, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.

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