Headway Capital Business Loans: 2023 Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
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 regarding all qualifications or APR |
On this page
Headway Capital business loans review
Headway Capital provides business lines of credit to small businesses looking for fast funding without a lot of added fees. If you’re a newer business with less-than-stellar credit, Headway Capital may be worth considering.
Who is Headway Capital for?
- Small business with less than perfect credit. If you’re looking for a bad credit business loan, Headway Capital 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 operating for six months 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. Headway Capital does not disclose its starting annual percentage rate (APR), but depending on the state your business is operating in, you may also incur a draw fee of 2% and a late fee, if you’re late with a payment.
Repayment terms can be 12, 18 or 24 months, and after each draw you can select a new 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, a Headway Capital limits its funding to businesses in 41 states and the District of Columbia. If your business is based in any of the following nine states, your business is 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 including financial statements, tax returns from the past two years and bank statements, for example.
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 |
| 6.20% |
| Maximum loan size | $100,000 | $150,000 | $250,000 |
| Minimum annual revenue | $50,000 | $100,000 | $480,000 |
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. However, businesses only need to be operating for three months to qualify for Fundbox, proving to be the better option for startup business loans.
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 $480,000, which can be difficult for some companies.