Headway Capital Business Loans: 2022 Review


Estimated APR: Starting at 40.00% APR Best for: Business owners with a less-than-perfect credit history and relatively low annual revenue.
  • Estimated APR: Starting at 40.00% APR
  • Best for: Business owners with a less-than-perfect credit history and relatively low annual revenue. 

Pros and cons of Headway Capital

ProsCons

  Long repayment terms for a line of credit.

  No prepayment penalties.

  No credit score requirement.

  Relatively low annual revenue requirements.

  High starting APRs

  Not available in all states.

  Only one lending product available: business lines of credit.


Headway Capital small business loans review


Headway Capital is an online lender who offers business lines of credit. Its lines of credit come with remarkably few fees and are available to those with less-than-perfect credit, but they are expensive in terms of APR. You may consider applying to Headway Capital if your business is relatively new with modest annual revenue.

Who is Headway Capital for?

  • Businesses that have only been in business a year.
  • Businesses with annual revenue between $50,000-$100,000. Once you hit the $100,000 mark, you may qualify for more advantageous rates from other lenders.
  • Those with less-than-ideal credit. Headway Capital has no minimum credit score requirement, and considers your business’ financial situation holistically.

Headway Capital small business financing at a glance


ProductLoan amountsRepayment termEstimated APR rangeFees
Business line of Credit$5,000-$100,00012, 18 or 24 monthsStarting at 40.00% APR2% draw fee in most states

Line of credit

The only product Headway Capital offers is a business line of credit. These lines of credit have long repayment terms, but high starting APRs. You can opt to make your payments weekly or monthly, and there are no prepayment penalties should you choose to pay your debt off early. In fact, the only fee you could end up paying is a 2% draw fee, but that only applies to certain states.

Location-specific terms for Headway Capital lines of credit

Minimum credit line amounts and fees vary by state. In most states, the minimum line of credit amount is $5,000, and your initial draw must be $500 or more. Applicants in the vast majority of states will also pay a 2% draw fee.

As of July 7, 2022, the following states have different terms for a Headway Capital line of credit:

StateDraw feeLoan amountsMinimum first draw amount
Alabama2%$5,000-$100,000$2,000
Alaska2%$25,100-$100,000$25,100
California2%$5,000-$100,000$5,000
ColoradoNone$5,000-$100,000$500
District of Columbia2%$25,100-$100,000$25,100
Florida2%$25,100-$100,000$500
GeorgiaNone$5,000-$100,000$3,100
IndianaNone$5,000-$100,000$500
Kentucky2%$15,100-$100,000$15,100
Maryland2%$15,100-$100,000$15,100
Massachusetts2%$6,100-$100,000$1,000
Mississippi2%$5,000-$100,000$2,100
Missouri2%$5,000-$100,000$5,000
New JerseyNone$5,000-$100,000$500
New Mexico2%$5,100-$100,000$5,100
Ohio2%$5,100-$100,000$5,100
OklahomaNone$5,000-$100,000$500
Oregon2%$50,100-$100,000$50,100
South Carolina2%$7,600-$100,000$7,600
Virginia2%$5,000-$100,000$5,000

Alternatives to Headway Capital


Headway CapitalOnDeckFunding Circle
Minimum credit scoreNone600660
Loan products offered
  • Business lines of credit
  • Term loans
  • Business lines of credit
  • Term loans
  • Business lines of credit
  • SBA 7(a) loans
Time to fundingAs soon as the next day.As soon as the same day.As soon as the next day.
Starting APR40.00% APR29.90% APR10.99% APR
Maximum loan size$100,000$100,000$100,000
Minimum annual revenue$50,000$100,000$120,000

There are many online lenders that offer business lines of credit, and many of these lenders offer a wider range of business loan options than Headway Capital. Headway Capital tends to have less fees than other lenders and more flexible credit history requirements, but it also charges noticeably higher ARPs than the competition.

Headway Capital vs. OnDeck

At first glance, OnDeck may look cheaper than Headway Capital with its lower APRs. It may well be, depending on how much you’re borrowing against your line of credit and your creditworthiness. But OnDeck business lines of credit come with an additional $20 monthly fee, in addition to requiring double the annual revenue. Terms are only 12 months compared to terms of up to 24 months at Headway Capital. OnDeck does offer term business loans where Headway Capital does not.

Headway Capital vs. Funding Circle

Funding Circle has much stricter lending requirements than Headway Capital in terms of credit score and annual revenue requirements, but it also offers dramatically lower APRs. If you qualify, Funding Circle could be a less expensive way to borrow. However, like OnDeck, Funding Circle charges a $20 per month fee, and a 5% late fee if you are late on any payments. These fees could eat into your APR savings, but you’d have to run the math on the specific offers you receive from each lender based on your credit profile. Funding Circle not only offers term loans, but also SBA 7(a) loans which tend to have lower interest rates.