Headway Capital Business Loan Review
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Not disclosed
$5,000 to $100,000
Six months to 1 year
$50,000 or more
Pros and cons of Headway Capital
| Pros | Cons |
|---|---|
| No annual or monthly service fee No prepayment penalties Can receive funds the next business day | Must be operating in certain states Only one product offered Website is not transparent about the required credit score or documents needed to qualify |
Headway Capital small business loans review
Headway Capital’s small business loans are offered as a business line of credit with no annual or monthly fees or penalties if you want to pay back what you borrowed early. Since you only need to be in business for a minimum of six months with a minimum annual revenue of $50,000, it’s a great option for newer businesses, especially those with less than stellar credit as the company looks at more than your credit score to qualify.
Funding is relatively fast and can be expected within the next business day, but you can only receive up to $100,000. Businesses that need to borrow a larger amount may need to look elsewhere. Alternatively, borrowers in select states may also need to seek a different lender, as Headway Capital does not offer its product everywhere.
- Small businesses with less than perfect credit. If you’re looking for a bad credit business loan, Headway Capital could be a good option for you because it looks at more than your credit score when determining eligibility for its loan product.
- Newer businesses looking for financing. Small businesses only need to be in operation for at least 6 months with an annual revenue of at least $50,000 to qualify for a business line of credit.
- Fast funding. Once approved, small businesses can receive funds within the next business day.
Headway Capital small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Business line of credit | $5,000 to $100,000 | 12, 18, or 24 months | Not disclosed |
|
Line of credit
Headway Capital offers a business line of credit between $5,000 and $100,000. A business line of credit is a flexible form of funding you can draw from as needed, and interest is only charged on the amount you borrow. But you may incur a draw fee of 2% and a late fee (undisclosed amount), if you’re late with a payment.
Repayment terms can be 12, 18 or 24 months, and with each draw you can select a repayment schedule that fits your needs.
Headway Capital borrower requirements
| Minimum annual revenue | $50,000 |
| Minimum time in business | 6 months to 1 year |
| Minimum credit score | Not disclosed |
To get a business loan with Headway Capital, you’ll need to make at least $50,000 in annual revenue and be in operation for at least six months. While some business lenders have minimum required credit scores needed to apply, Headway Capital states that they take a holistic look at your business instead. What this means in practice is that your business’s revenue and profitability will likely carry more weight.
In addition, Headway Capital limits its funding to businesses in 41 states and District of Columbia. Businesses based in any of the following nine states are not eligible for a Headway Capital line of credit: Arkansas, Connecticut, Michigan, Montana, Nevada, North Dakota, Rhode Island, South Dakota and Vermont.
Required documents
Headway Capital doesn’t publish the documents needed to apply for a business loan on its website, but most lenders have small business loan requirements that include financial statements, tax returns from the past two years and bank statements.
Alternatives to Headway Capital
| Headway Capital | Fundbox | Bluevine | |
|---|---|---|---|
| Minimum credit score | Not disclosed | 600 | 625 |
| Loan products offered | Business line of credit | Business line of credit | Business line of credit |
| Time to funding | Next business day | Next business day | Within hours for an additional $15 fee |
| Starting APR | Not disclosed |
| 7.80% |
| Maximum loan size | $100,000 | $150,000 | $250,000 |
| Minimum annual revenue | $50,000 | $30,000 | $120,000 |
Headway Capital vs. Fundbox
Both Headway Capital and Fundbox offer a business line of credit that can be received the next business day upon approval. But Fundbox has a slightly lower requirement for both time in business and annual revenue, while Headway Capital uses more than just a credit score to determine eligibility. This means that your unique situation will determine which lender is the better fit.
Headway Capital vs. Bluevine
Bluevine offers a higher maximum loan size than Headway Capital, making it ideal for small businesses in need of more funds. However, Bluevine does require a business to make a minimum annual revenue of $120,000, which can be difficult for some companies. But if you need money fast, Bluevine can get it to you within a few hours of approval for an additional wire fee.