Headway Capital business line of credit review

Headway Capital rates, fees and terms

Headway Capital's lines of credit run from $5,000 to $100,000. Each time you make a withdrawal, it turns into a short-term business loan with a repayment period of 12 to 24 months.

It charges a monthly interest rate of 3.33% to 6%, which translates to a 40.03% to 72.24% annual rate. Each time you make a withdrawal, Headway Capital charges a 2% fee in most states — which increases your APR depending on how often you use the credit line.

This line of credit also comes with a minimum first draw amount of $500 for most states, though it can get as high as $5,000 or even $50,100. Use our calculator to see how much this loan might cost you.

How Headway Capital compares to other lenders

Here's how this online lender holds up to other providers that offer business lines of credit.

★★★★★

Finder Rating: 4.2 / 5

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Loan amount $5,000 to $100,000
APR 40.03% to 72.24%
Loan term 12 to 24 months
Requirements 12+ months in business, $50,000+ annual revenue, operate in an eligible state

★★★★★

Finder Rating: 4.6 / 5

Check eligibility
Loan amount $5,000 to $250,000
APR Starting at 35%
Loan term 3 to 24 months
Requirements 600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account

★★★★★

Finder Rating: 4.75 / 5

Check eligibility
Loan amount $500 to $5,000,000
APR Starting at 6%
Loan term 12 to 300 months
Requirements Operate business in US or Canada, have a business bank account, 560+ personal credit score

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Headway Capital reviews and complaints

Headway Capital only has a few negative reviews on its BBB page — borrowers mainly have problems with the high rates and payments. And while it receives good reviews on its Trustpilot page, the majority are from the last few months and vague, making it hard to judge how well Headway Capital works with its customers.

How to qualify

Headway Capital only has a few minimum eligibility requirements.

• At least one year in business
• Minimum annual revenue of $50,000
• Located in District of Columbia or one of the 41 states it serves

While Headway Capital doesn’t have an explicit credit score cutoff, your personal and business credit scores still factor into the underwriting process. If your business has multiple owners, there’s a chance you’ll get more competitive rates if the owner with the highest credit score applies for the loan.

How the application works

You can get started on the application by filling out a form on Headway Capital's website. During the application, it typically asks to see at least three months of your business’s banks statements and might also ask for tax returns and profit and loss statements.

It only conducts a hard credit pull after you sign your loan documents. If this dramatically affects your rates, you’ll be asked to sign a new agreement. Typically, it takes one day to access your funds after you’re approved.

Once you’re approved for your line of credit, you can draw from it at any time. There’s a minimum amount the first time you make a withdrawal — usually $500 — but you can withdraw up your credit limit.

After you make a draw, your business can choose between making weekly or monthly repayments. Headway Capital doesn’t charge any prepayment penalties, so your business can save on interest by paying the loan off early.

What sets it apart

Headway Capital’s credit lines are simple and straightforward. Businesses that need access to a small amount of flexible funds to cover overhead expenses will benefit from this the most — its $100,000 maximum is a bit low for large or even midsize operations.

It provides fast funding for businesses — funds can hit your account as soon as the business day after they're requested. And if you have any questions, you can always reach out to its US-based customer service team.

Is it legit?

Yes, Headway Capital is a legitimate lender. It's a part of publicly traded company Enova Financial. And it's licensed to lend in states that require a license.

It's also highly transparent about the costs and terms available on its credit lines. Especially for a lender that specializes in businesses that typically struggle to qualify.

Compare more providers that offer business lines of credit. Or to learn more about the different types of financing with our guide to business loans.

Frequently asked questions

Answers to common questions business owners have about Headway Capital.

Is Headway Capital's application safe?

While no online form is 100% hacker-proof, Headway Capital uses SSL encryption and software by McAfee Secure and Verisign to protect any information you enter online. It also scans its site for malware daily.

Are there any restrictions to how my business uses the funds?

No, as long as it’s a legitimate business expense — like marketing, hiring employees or buying equipment or inventory.

Can I withdraw from my line of credit before I pay off my previous draw?

You can, as long as you have the available credit and your account is in good standing with Headway Capital. Your second draw is added to your current balance, which comes with adjusted repayments, rates and fees.

Compare more business financing options

See how Headway Capital stacks up to more online business loans your business might qualify for.

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