Headway Capital Line of Credit: 2025 Review
Headway offers a fast and flexible business line of credit — but rates are higher than bank loans.
Overview
The bottom line:
Headway Capital’s fast line of credit can be a good option for startups and borrowers with fair or bad credit.
Loan details
Min. Loan Amount
$5,000
Min. Term Length
12 months
Min. APR
35%
Max Loan Amount
$100,000
Max Term Length
24 months
Max APR
80%
Qualifications
Min. credit score
625
Min. Time in Business
6 months
Min. Annual Revenue
$50,000
Pros & Cons
Pros
Flexible qualification requirements.
No prepayment penalties.
Funds available by next business day after approval.
Cons
Most borrowers are subject to a 2% draw fee.
Not available in all U.S. states.
Headway Capital is an online lender that issues business lines of credit
Headway Capital is best for borrowers who:
- Need fast cash. You can complete Headway’s simple and straightforward application and find out if you qualify for a credit line in just minutes. After you’ve been approved, you can receive funds as quickly as the next business day.
- Have newer businesses. Headway only requires a minimum of 6 months in business and $50000 in annual revenue (about $4,167 per month) for you to qualify. In addition, the lender does not require you to secure your financing with
physical collateral - Have fair or bad credit. Headway considers several factors when underwriting your loan application, not just your credit score. You’ll only need a minimum personal credit score of 625 to qualify.
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Headway Capital line of credit features
Headway Capital offers a flexible, revolving business line of credit.
Like most credit lines, you can use Headway’s line of credit for a variety of purposes, drawing funds as you need them. You only pay interest on the funds you draw. Once you’ve paid back the money you’ve borrowed, you can continue to draw on the line.
Here’s what you need to know about this product:
| Credit line amount | $5,000 to $100,000. |
| Estimated APR range | 35% to 80%. |
| Fees | 2% draw fee applicable in most states. A draw fee is charged each time you take funds from your credit line. |
| Terms | 12, 18 or 24 months. |
| Repayment schedule | Weekly or monthly. |
| Funding speed | Funds available within one business day of approval. |
Headway Capital requirements
To qualify for a Headway Capital line of credit, you’ll need to meet the following requirements:
- Minimum credit score: 625.
- Minimum time in business: 6 months.
- Minimum annual revenue: $50000.
You will also need a business bank account. If you’ve been operating for less than one year, you’ll be asked to provide six months of business bank statements.
Headway Capital will require you to sign a personal guarantee Uniform Commercial Code (UCC) lien
Headway Capital does not provide financing to businesses in the following states: Arkansas, Connecticut, Montana, Michigan, North Dakota, Nevada, Rhode Island, South Dakota and Vermont.
Where Headway Capital stands out
Fast access to funds
With Headway Capital’s line of credit, you can get fast access to working capital. You can submit an initial application in just minutes by providing basic information about yourself and your business.
If you’re eligible, you’ll receive a pre-qualification offer. This offer will allow you to choose your repayment term and initial draw amount. Then, you’ll be prompted to sign a business loan agreement
After you’re approved, the initial draw amount will be deposited into your bank account and you can pull from the funds immediately. It typically takes one business day to receive your funds.
Easy to qualify
Compared with more traditional business loan options
Whereas a bank may require a minimum credit score close to 700 and two years in business, you’ll only need a credit score of 625 and 6 months in business to qualify for Headway’s line of credit. The lender also doesn’t require you to secure your credit line with physical collateral, which may be appealing to businesses with limited assets.
Limited fees
Although businesses in certain states will be subject to a 2% draw fee, Headway Capital doesn’t charge any other extraneous fees. The lender does not charge a monthly or annual maintenance fee, an origination fee or an inactivity fee.
You can also repay your outstanding balance at any time without incurring a prepayment penalty.
Where Headway Capital falls short
Low borrowing maximum
If you’re looking for a large credit limit, you may want to consider alternative options, as Headway only offers lines of credit up to $100,000. Some competitors, like American Express Bluevine
» MORE: Best large business loans
Can’t build business credit
Headway Capital does not report your payment history to the commercial credit bureaus. While this means that you can’t hurt your business credit score using a Headway line of credit, it also means you can’t build business credit
Building business credit can be particularly important for newer companies, as doing so can help them qualify for larger loan amounts, more competitive interest rates and longer repayment terms in the future.
Although online lenders OnDeck
Alternatives to Headway Capital
Fundbox
If you have a slightly lower credit score or want to avoid a draw fee, Fundbox
Fundbox offers a business line of credit in amounts up to $150,000. Annual percentage rates can range from approximately 36% to 99% — a bit higher than Headway — but Fundbox does not charge a draw fee. Repayment is required on a weekly basis, with 3- or 6-month terms.
To qualify for a Fundbox line of credit, you’ll need a minimum credit score of 600, at least 3 months in business and a minimum annual revenue of $100,000.
SBA microloans
SBA microloans are available in amounts up to $50,000 with repayment terms as long as seven years. Interest rates typically range from 8% to 13%, significantly lower than Headway Capital offers. Although these are term loans — and not lines of credit — they can provide funding for a variety of working capital needs.
Unlike other types of SBA loans microlender
Frequently asked questions
Frequently asked questions
In most cases, no, Headway Capital does not do a hard credit pull. When you submit your application, Headway will perform a soft credit inquiry, which will not impact your credit score. If your credit file is restricted, however, the lender will contact you to lift the restriction, which may result in a hard credit pull.
Yes, Headway Capital is a direct business lender. Headway is part of the larger financial services organization Enova International, which also owns online lending companies OnDeck and The Business Backer.
Headway lines of credit may have a 2% draw fee, depending on your state. Business owners in Colorado and Georgia, for example, will not have a draw fee.