Headway Capital Review
Headway Capital is convenient for merchants needing a small credit line for various working capital needs, but this service is not available everywhere.
Headway Capital

Total Rating | 3.5 |
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Terms & Fees | Fair |
Application Process | Good |
Sales & Advertising Transparency | Good |
Customer Service | Excellent |
User Reviews | Good |
Pros
- Low credit score requirements
- No prepayment penalties
- The application process is fast and easy
- Funds are disbursed quickly
- Customer service is helpful
Cons
- Financing isn’t available in some states
- Rates can be expensive
- Some additional fees charged
Headway Capital Overview
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, a fast funding process, long term lengths, and lines of credit. However, Headway Capital’s APRs range from 40% to 80%, which is high even compared to similar lenders.
Read on for the details.
Table of Contents
Financing Options Offered
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.
Borrower Qualifications
These are the minimum qualifications required to get a loan from Headway Capital:
Time In Business | 12 months |
Credit Score | 550+ |
Revenue | $50K per year |
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.
How Do Credit Scores Factor In?
Be aware that Headway Capital 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.
Headway Capital Terms & Fees
Credit Line | $5K-$100K |
Term Length | 12, 18, or 24 months |
Interest Rate | 0.11%-0.22% daily (3.3%-6.6% monthly) |
Draw Fee | 0% OR 2% per draw (depending on the state) |
APR | 40%-80% |
Collateral | Personal guarantee |
Terms & Fees By State
Headway Capital’s credit lines currently cap at $100K, 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. I’d go so far as to say that where you live will largely dictate how good a deal Headway Capital is.
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.
How Often Can You Draw From Your Credit Line?
You can draw from your line up to your available credit limit at any time, and you only have to pay interest and fees on the outstanding amount.
Interest Rates & Repayement
Interest rates range from 3.33%-6% per month or about 0.11%-0.22% per day. Repayments are made weekly or monthly for either 12, 18, or 24 months. You can repay early at any time without penalty. Because interest accrues daily, you could save money by repaying early.
Headway Capital’s Application Process
Headway Capital’s application process is entirely online.
1. Complete Online Application
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.
2. Submit Documentation
If you choose to continue, you’ll have to submit documentation, including your three most recent monthly business bank statements.
3. Credit Check
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.
4. Final Steps
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.
Sales & Advertising Transparency
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.
The only thing keeping Headway Capital from an “excellent” rating here is its monthly interest system can create the impression its rates are lower than they actually are.
Customer Service & Technical Support
Customer service is accessible via phone or email. Phone service is available Monday-Friday, 8:30 AM-5 PM CT. 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.
The website also has an FAQ that may provide helpful information to new customers.
Headway Capital User Reviews
Headway Capital has a Better Business Bureau profile, but the company is not currently accredited. Headway Capital currently rates an A+ on the site and has five reviews and five 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 572 total reviews.
Negative Reviews & Complaints
Here is what customers don’t like about the service:
- Draw Fee: In most states, Headway Capital charges a 2% fee every time you draw from your line. This fee is not unusual, but those fees can add up quickly depending on how you use your account.
- Expensive Borrowing Fees: Headway Capital’s APRs range from 40%-80%, which is high compared to other similar services. Be sure that you understand your personal APR and make some comparisons to other services before accepting an offer from Headway Capital.
- Credit Line Changes: Headway Capital reserves the right to adjust the amount of credit available to you during periodic reviews of your account. In some cases, accounts were frozen unexpectedly.
Positive Reviews & Testimonials
The largest source of positive reviews is Headway Capital’s Trustpilot page. Here is what customers liked about this service:
- Fast Application Process: You can get your funding as soon as the next business day if everything goes well.
- Friendly Customer Service: Most customers were satisfied with the care they received from Headway Capital staff.
- Convenient Revolving Credit Loans: Lines of credit can traditionally be one of the harder financial products to qualify for. Headway Capital makes it easier for businesses to access them.
Do you have experience with Headway Capital? Good or bad, leave a message in the comments below!
Headway Capital Review: Final Verdict
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. Headway Capital has also increased the maximum size of its line of credit up to $100K, which 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. As for Headway Capital itself, the pesky 2% draw fee is the difference of a half-star rating. If you live in Colorado, Georgia, Indiana, New Jersey, or Oklahoma, you’re going to have a better experience with Headway Capital than you would in other states. Consider it a 4/5 alternative lender in those states and a 3.5/5 elsewhere.
That said, there’s no particular reason to avoid Headway Capital if the company happens to offer you the best deal.
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Organization Name: Grant Therapy Services
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.
This comment refers to an earlier version of this review and may be outdated.