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Headway Capital business line of credit review

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No-frills lines of credit up to $100,000 for almost any industry, but beware of high APRs.

Looking for a line of credit but having trouble getting approved? Headway Capital offers a quick, straight-forward option open to most industries and with no credit score cutoff. It’s not for startups — your business must be around for at least a year — and it’s currently only available in 36 states.


Min. Amount


Max. Amount


Product NameHeadway Capital True Line of Credit
Min. Amount$5,000
Max. Amount$100,000
Loan Term1 to 2 years
RequirementsAt least one year in business, $50,000 annual revenue, operate in an eligible state

What is Headway Capital?

Headway Capital is an online small business lender that offers lines of credit. Credit limits range from $5,000 to $100,000, which your business can access whenever it needs funds. Each withdrawal turns into a short-term business loan with a repayment period of 1 year to 2 years — based on your and your business’s creditworthiness. These can be costly, coming with a 3.33% to 6% monthly interest rate, which translates to a 40.03% to 72.24% APR.

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. You might be charged a 2% draw fee every time you withdraw from your line of credit, depending on your state. 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 $7,600.

What makes Headway Capital lines of credit unique?

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 too, providing funds as soon as the next business day. And if you have any questions, you can always reach out to its US-based customer service team.

What are the benefits of Headway Capital lines of credit?

  • Risk-free application. Headway Capital doesn’t pull a hard credit check until after you’ve signed your loan documents.
  • Fast funding. You can get money in your account as soon as one business day after getting approved.
  • No prepayment penalties. It doesn’t front-load its interest either, so you’ll be able to save on interest by paying off your loan early.

What to watch out for

  • Draw fee. Several states charge a 2% fee each time you make a withdrawal from your business’s credit line.
  • First-time draw minimum. Most businesses must withdraw at least $500 the first time, though in some states it can be as high as $5,000 or even $7,600.
  • Weekly repayments. Your business has a choice between weekly and monthly repayments. Weekly repayments are less flexible and can be difficult to afford if your business has spotty cash flow over the course of a month.
  • Not available in all states. Headway Capital only operates in 36 states.
  • Can be expensive. Headway Capital expresses interest rates as monthly interest, which might make it seem competitive at a glance, but can be as high as 72.24% APR.

Compare more business financing options

Updated October 20th, 2019
Name Product Filter Values Min. Amount Max. Amount Requirements
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
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2+ years in business, 620+ credit score, not a sole proprietorship or nonprofit, strong financial history
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600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
1+ years in business, $50,000+ annual revenue or $4,200+ monthly revenue over last 3 months
A simple, convenient online application could securely get the funds you need to grow your business.
Varies by lender and type of financing
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Credit score of 500+, legal US resident and ages 18+.
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What do customers say about Headway Capital?

There’s not much online about Headway Capital, but what’s there is mostly positive. As of July 2018, it has an A+ rating with the Better Business Bureau (BBB), which it isn’t accredited with. BBB ratings are based on several factors like advertising, transparency and how it handles customer complaints. It only has two customer reviews on its BBB page — one positive, one negative — and no customer complaints.

It doesn’t do quite as well on Trustpilot, only scoring an 8.6 out of 10, but there are far more 5-star reviews than poor reviews. Customers were generally pleased with the quality of the customer service and how easy it was to apply for a loan. A few were upset with how high the interest rates were, however.

Am I eligible?

Headway Capital’s minimum eligibility requirements are:

  • At least one year in business. In other words, this loan is not for startups and very new businesses.
  • At least $50,000 annual revenue. Your business might have more luck getting approved for higher amounts with a higher annual revenue, however.
  • Live in an eligible state. Headway Capital currently only lends to businesses based in 36 states.

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 do I apply?

Before you start your application, double check to make sure you’re eligible. Meet all of the criteria? Here’s how to fill out the application:

  1. Go to Headway Capital’s site and click Apply Now in the top right-hand corner.
  2. Fill out the required fields with information about your business and how much you’d like to borrow to create an account.
  3. Continue filling out the form with details on your personal and business finances and your business’s bank account information. At this point, Headway Capital lets you know how much your business is eligible to borrow and conducts a soft credit pull that doesn’t affect your score. If the rates and loan amounts meet your business’s financing needs, continue with the application.
  4. Wait for underwriters to review your application and submit your documents — typically three months of business bank statements.

Headway Capital 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.

What documents do I need to apply?

Headway Capital typically asks to see at least three months of your business’s banks statements. However, it might also ask to see some or all of the following documents, depending on your application:

  • Business tax returns. Tax returns help verify your business’s annual revenue.
  • Personal tax returns. Headway Capital requires a personal guarantee, so it might ask to see your tax returns to verify your annual income.
  • Profit and loss statements. This shows your company’s overall financial performance and helps Headway Capital determine whether or not your business can afford to repay the loan.

I got a Headway Capital line of credit. Now what?

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 as high as your credit limit. Withdrawals might also come with a 2% fee, depending on which state you live in.

Each withdrawal turns into a short-term loan. You might have a choice of a 12-, 18- or 24-month loan term, or you may be given a term based on the amount that you borrow. You can also choose between weekly or monthly repayments, which are automatically deducted from your business’s bank account.

If your business can afford it, consider repaying part or all of your loan early to save on interest. Keep an eye on both your bank account and the loan account to make sure there aren’t any mistakes — even machines can mess up. If you think your business might not be able to afford a repayment, contact customer service as soon as you can by calling 866-698-8494.

Bottom line

Headaway Capital’s lines of credit could be a good solution to businesses that are struggling to qualify for more traditional types of business financing. But with monthly rather than annual interest rates and withdrawal fees, this loan isn’t the cheapest option out there.

If you’ve a line of credit is best for your business, consider comparing more providers that offer business lines of credit. Or to learn more about the different types of business loans out there and to compare more lenders, visit our guide to business loans.

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