Last reviewed by:
Kate Rockwood
November 6, 2018
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.
Headway Capital
Headway Capital, our mission is to provide you access to the credit you need to run your business. We offer a fully-revolving, open-ended line of credit up to $35,000. You can continuously pay down your principal and redraw up to your credit limit. Funds are typically be deposited into your bank account within one business day pending approval. You can also choose between monthly and weekly repayment options that best fit your business.
95%
Headway Capital is an exploitative lender that takes advantage of small and new businesses with low credit. We got a small (less than 10k) line of credit with Headway, and as soon as we really needed it (the COVID outbreak), they froze our account with no prior warning. They claim that this can be appealed every month, but they have rejected my appeals every single time, with basically no explanation other than “hard times.” I’m not surprised that companies operate this way, and I know it is probably legal, but it is certainly unethical, exploitative, and a disgrace to American business.
By: Alex
Everything went smoothly and the funds came quickly. It's very difficult expanding your business and Headway Capital came through to help in a major way.
By: Bobby
Very easy and quick process.
By: Andy
Very professional and honest view of business needs.
By: Charles
Easy to use, fast and effificent loan process!
By: Spec
Founded in 2014, Headway Capital is a Chicago, Ill.-based online lender that provides a line of credit to small businesses. Headway Capital is part of Enova International, a publicly traded company that uses technology to develop financial products and services. Enova International has provided more than $20 billion in loans and financing to more than 5 million customers worldwide.
No credit score requirement. You’re more likely to get a loan from a traditional bank if you have a healthy credit score. Headway Capital does consider your credit score when you apply for a small business loan, but there’s no required minimum credit score minimum Headway Capital also considers multiple others factors when approving a loan application. So you might be asked to provide bank statements for your business bank account, corporate tax returns, personal tax returns, and profit and loss statements as other considerations.
Higher interest rates. Online lenders almost always charge higher interest rates than banks. That’s because they loan to riskier borrowers — business owners with lower credit scores, less time in business and less revenue than most banks.
No hidden fees. Headway Capital charges a 2% draw fee for its line of credit, but no annual or monthly service fee. There’s also no fee for paying off the line of credit early.
Compare small business loan offers
Headway Capital offers small businesses a revolving line of credit, capped at $100,000 to small businesses. Repayment can be made weekly or monthly for either a 12-, 18- or 24-month term.
| Loan product | Loan amount | Loan term | APR range/ factor rate | Fees | Time to funding |
| Line of credit | $5,000 to $100,000 | 12, 18 and 24 months | Not disclosed by lender | 2% fee on each draw from the credit line | Next business day after approval |
Fees accurate as of Nov. 2, 2018
Interest is not compounded and will be based on the amount withdrawn from the line of credit. There is no penalty for repaying the line of credit early. Headway Capital does not charge an annual or monthly service fee.
| Loan product | Annual revenue | Min. business credit score or personal credit score | Time in business |
| Line of credit | $50,000 | None | 1 year |
You must be located in one of the following states: Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin or Wyoming.
Headway Capital does not give loans to businesses that have been in operation for less than a year, have an annual revenue below $50,000 or are located in Alaska, Arizona, Connecticut, Hawaii, Iowa, Michigan, Montana, Nevada, North Dakota, Ohio, Oregon, Rhode Island, South Dakota or Vermont.
Loans can be applied for online. If eligible, you’ll receive a pre-qualified offer and can select your repayment term and initial draw amount.
Documents to apply
| Pros | Cons |
| Longer term lengths than some online lenders | Higher rates than traditional lenders |
| No minimum credit score required | Borrowing capped at $100,000 |
| Fast approval process | Longer time in business (1 year) than some online lenders |
Headway Capital is good for small businesses that might be turned down for a loan from more traditional lenders based on poor credit history, short credit history or less annual business revenue. Headway Capital’s application, approval and funding process is quick, so it would also be good for someone who needs financing fast. It’s also a good way for young businesses to build up credit history.
Headway Capital only offers one type of loan and they are upfront with information on their website, including that they charge a 2% draw fee for their line of credit. However, they don’t list their interest rates. Make sure you know exactly what you’ll pay each month. Also, make sure that you have enough to cover the interest on the amount of money you borrow.
If approved for a Headway Capital loan, the initial draw amount will be deposited into your business bank account, and you can draw funds up to your available credit limit right away. Because your funds are revolving, that money becomes available to draw again as you repay your outstanding principal balance. Every time you take out new funds, you’ll choose a new repayment term and your full outstanding balance will be re-amortized so that you’re just paying interest on the funds drawn.
Headway Capital does a good job of spelling out how their line of credit works. You will pay more from an online lender, though, than with a loan from a traditional bank. However, you can partly control how much you’re paying since you’ll only be charged interest on the amount you withdraw from the line of credit. If you go with Headway Capital, or any line of credit, make sure you can afford to pay interest on what you’ve borrowed.
To get your best rate, shop around several banks and online lenders. The better your credit history, or the more collateral you have to secure a loan, the better the interest rate you’re likely to receive. A loan marketplace like LendingTree makes this simple because our short online form requires just a few basic answers and will generate multiple loan options in one place.