Headway Capital Review

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

What Is Headway Capital?

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.

Services 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.

Headway Capital Borrower Requirements

These are the minimum qualifications required to get a loan from Headway Capital:

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.

Headway Capital Interest Rates & Fees

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.

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.

Application Process

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 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.

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 Service & Technical Support

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.

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 Reviews

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.

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.

Is Headway Capital Right For Your Business?

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.

Business Loan & Funding Products Review Methodology

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.

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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.