Headway Capital is convenient for merchants needing a small credit line for various working capital needs, but this service is not available everywhere.
WRITTEN & RESEARCHED BY
Expert Contributor
Last updated onUpdated
REVIEWED BY
Editor & Senior Staff Writer
| Total Rating | 3.7 |
|---|---|
| Rates & Fees4.3 | |
| Services2.1 | |
| Eligibility Requirements4.5 | |
| Application4.3 | |
| Sales & Advertising Transparency3.4 | |
| Customer Service3.4 | |
| User Reviews4.0 | |
Table of Contents
Headway Capital specializes in lines of credit to young but established businesses that do not yet have access to other (often less expensive) forms of financing.
There are a lot of things to like about Headway Capital’s services and convenient products — friendly and transparent customer service, low borrower qualifications, an easy application, and a fast funding process for revolving lines of credit. However, Headway Capital’s rates are fairly high, even when compared to similar lenders.
| Services2.1 |
|---|
| Lending Services 1.0 |
| Lending Limits 3.0 |
| Payment Portal & Mobile App 2.5 |
Headway Capital offers business lines of credit to qualified merchants. A line of credit establishes a maximum amount the applicant can borrow, called the credit limit. The borrower can draw on the line of credit repeatedly so long as the total amount borrowed doesn’t exceed the credit limit. In most cases, interest is only paid on the amount of credit being used.
Headway Capital offers a revolving line of credit, meaning that as you pay off your balance, you free up more credit to draw upon again.
| Eligibility Requirements4.5 |
|---|
| Availability 4.5 |
| Borrower Qualifications 4.3 |
| Transparency 5.0 |
These are the minimum qualifications required to get a loan from Headway Capital:
| Time In Business | 12 months |
| Credit Score | Undisclosed |
| Revenue | $50,000/year |
While Headway Capital does not disclose minimum credit score requirements, the lender does check both your personal and business credit. However, the company bases its decision to let you borrow on many other factors aside from your score. You may still be eligible for financing even if you have subpar credit, or you may be declined for reasons apart from your scores.
In addition, Headway Capital currently lends to businesses in all states and the District of Columbia except for Connecticut, Michigan, Montana, Nevada, North Dakota, Rhode Island, South Dakota, and Vermont.
Because it is available in most states and requirements are fairly easy to meet, we give Headway Capital a score of 4.5 for its eligibility requirements.
| Rates & Fees4.3 |
|---|
| Pricing 3.6 |
| Affordability 5.0 |
Headway Capital’s credit lines currently cap at $100,000, though the amount offered to you personally depends on your annual revenue, creditworthiness, and other business factors. Somewhat unusual for this type of lender, your terms may vary significantly, depending on the state you live in.
| Credit Line | $5,000 - $100,000 |
| Term Length | 12 - 24 months |
| Interest Rate | 0.11% - 0.22% daily (3.3% - 6.6% monthly) |
| Draw Fee | Up to 2% (depending on the state) |
| APR | 40% - 80% |
| Collateral | Personal guarantee |
Minimum and maximum credit line sizes also vary by state. More importantly, your state will determine whether or not there’s a 2% draw fee every time you draw upon your line of credit. The states that don’t have this fee are Colorado, Georgia, Indiana, New Jersey, and Oklahoma.
Finally, your state also determines the minimum amount you must take out with your first withdrawal. Check Headway Capital’s site to see the terms for your particular state.
You can draw from your line of credit up to your available credit limit at any time. You will only have to pay interest and fees on the outstanding amount.
Interest rates range from 0.11% - 0.22% daily (3.3% - 6.6% monthly). Repayments are made weekly or monthly. You can repay early at any time without penalty. Because interest accrues daily, you could save money by repaying early.
Headway Capital offers decent rates and repayment terms, earning it a score of 4.3 in this area.
| Application4.3 |
|---|
| Application Process 5.0 |
| Application Timeline 3.5 |
Headway Capital’s application process is entirely online. To apply, all you need to do is fill out an application via the website. Headway Capital will ask for information about you, your business, and your bank.
At this point, the company will run a soft credit check, which won’t affect your credit score. Headway Capital will use all this information to determine whether or not you’re eligible to continue with the funding process.
If so, the company will offer you an estimated quote, including a maximum credit line and an interest rate. You can use this information to decide whether you’d like to continue the process, but be aware that your quote may change after an underwriter looks at your info.
If you choose to continue, you’ll have to submit documentation, including your three most recent monthly business bank statements.
An underwriter will assess your information to ensure everything is in order and decide your maximum credit line and interest rate. The underwriters will run a hard credit check at this point, which will affect your score.
Assuming everything checks out, Headway Capital will offer you a credit line and corresponding interest rate. If you agree to the terms and sign the contract, you will be able to start drawing funds from your line.
The time from application to funding usually only takes a few days.
Overall, we like Headway’s easy application process, which is why we rated it 4.3/5 stars.
| Sales & Advertising Transparency3.4 |
|---|
| Sales Practices 4.0 |
| Web Presence 2.5 |
Headway Capital’s website is not misleading, and it provides a fair amount of information about how its products work and who might be eligible to borrow capital. You may have to dig around for some product information, but to be fair, the terms do vary substantially from state to state.
One thing that keeps Headway Capital from a higher rating here is its monthly interest system can create the impression its rates are lower than they actually are. Headway Capital also has social media profiles, but it’s disappointing to see the lack of updates on these accounts.
| Customer Service3.4 |
|---|
| Personal Support 3.6 |
| Self-Service 3.0 |
Customer service is accessible via phone or email. Phone service is available Monday-Friday, 8:30 AM-5 PM CT. There is also a company blog, FAQ, and social media profiles on X/Twitter, Facebook, and LinkedIn, although updates on these profiles are infrequent.
| Headway Capital Customer Service | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
Most people are happy with this company’s customer support — in fact, many customers cite the service as one of the high points of working with Headway Capital. In my experience, the customer service is friendly, knowledgeable, and transparent.
| User Reviews4.0 |
|---|
| User Feedback 4.0 |
| Review Site Aggregate 4.0 |
Headway Capital has a Better Business Bureau profile, but the company is not currently accredited. Headway Capital currently gets a B- on the site and has three reviews and three complaints within the last three years.
On Trustpilot, where reviews tend to be more positive, the company has an aggregated rating of 4.6/5 with over 2,200 total reviews.
Here is what customers don’t like about the service:
The largest source of positive reviews is Headway Capital’s Trustpilot page. Here is what customers liked about this service:
Headway Capital might be convenient for merchants needing a small credit line to capitalize on business opportunities or other working capital needs. The service is now available in most states, and its lines of credit up to $100,000 should be adequate for most small business needs.
This lender has a lot of competitors, however, and many offer lower interest rates, smaller fees, and/or access to more capital. If you’re eligible for Headway Capital, you are likely also eligible for other lines of products.
That said, there’s no particular reason to avoid Headway Capital if the company happens to offer you the best deal. Overall, we rate the Headway Capital 3.7 out of 5 stars.
Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.
Read more about how we rate business loans and funding products.
When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.
Find Funding for Any Credit Level
BusinessLoans.com  |
|---|
Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.
Find Funding for Any Credit Level
BusinessLoans.com |
|---|
Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.
Let us know how well the content on this page solved your problem today. All feedback, positive or negative, helps us to improve the way we help small businesses.
Give Feedback
Want to help shape the future of the Merchant Maverick website? Join our testing and survey community!
By providing feedback on how we can improve, you can earn gift cards and get early access to new features.
Our expert reviewers found BusinessLoans.com to have a quick and easy application process alongside excellent support and guidance for borrowers.
Start A Quick Application
Help us to improve by providing some feedback on your experience today.
The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
Our expert reviewers found BusinessLoans.com to have a quick and easy application process alongside excellent support and guidance for borrowers.
Start A Quick Application
