Headway Capital: Reviews and Ratings

Small businesses are what this country is all about. We need them now more than ever, as conglomerate corporations continue to centralize wealth. It’s important for small businesses to thrive, as this will keep competition alive, stopping the Amazons and Walmarts of the world from doing whatever they want. But frankly, there are a lot of cards stacked against small business owners these days. Rent, insurance, equipment, etc. It all adds up. There is no shame in needing a bit of help every now and then. 

Luckily, the help is out there. If you are interested in a small business loan, you’ve likely come across Headway Capital. Or if not, this article will be your introduction! There are lots of small business-centric lenders out there, and we want to make sure you pick the best one for your needs. We’re gonna dig deep into Headway Capital with this review article, to help you make the best decision for your business to thrive. Let’s get started!

Easy requirements

4.5

• Loan amounts up to $100,000
• Custom Terms: Repayment periods from 12 to 60 months with fast 48-hour approvals.
• Trusted Expertise: Recognized for ethical lending and innovative financial solutions.

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What Is Headway Capital and How Does It Work?

Let’s start with quick background. Headway Capital was founded in Chicago in 2013. They are part of Enova International, a successful financial technology company.

The core offering Headway Capital provides customers is a revolving line of credit for small businesses. The amount offered ranges from $5K to $ 100 K. A unique selling point of Headway Capital is its flexibility. You can reuse your credit as it’s paid back, the online application is quick and easy, and you can get your funding as soon as the next business day. Repayment schedule can be weekly or monthly. There are no origination or maintenance fees. 

Headway Capital Loan Terms and Costs

As previously said, Headway’s loan amount ranges from $5,000 to $10,000. The terms for paying off your loan typically range from 12 to 24 months. Repayment will either be weekly or monthly, depending on your terms. 

This is where things get dicey. The APR for Headway Capital can range from 40% to 80%. That’s pretty damn high. In other words, if you borrowed $20K, repaying over 12 months at 60% APR would be $6K to $7K in interest. On the plus side, because there are no prepayment penalties, you can pay off your loan early with no repercussions.

Stellar Reputation

4.8

Lendtly.com

• Direct Lending Excellence: Matches you with the best loans.
• Loans ranging from $2,500 to $100,000
• Flexible terms: 3 to 120 months, 24 hours post-approval
• Same day approval

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Who Is Eligible to Apply?

There are low barriers to entry to use Headway Capital. Here are the requirements for eligibility:

• Minimum credit score: 560 
• Business must be operational for at least 12 months 
• Minimum annual revenue: $50,000+ 
• Must have an active business checking account 
• Not available in ND, RI, or SD

Perhaps the toughest requirement is the minimum one year of being open, because if you’re looking for a business loan, there’s a good chance you are a new business. Although it makes sense from a lender’s perspective. If you live in ND, RI, or SD, you will have to look elsewhere for a lender.

No upfront fees

4.7

DebtCarePlus

• Competitive APR: 3.49% to 35.99% for loans $1,000 to $100,000.
• Program: 24-36 months, 100% service guaranteed.
• BBB A Rating: Trusted online marketplace.

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Pros and Cons of Headway Capital

To give you a clearer picture of Headway Capital, we will lay out the pros and cons of using their services:

Pros:

• True revolving credit line– This means you can repay your credit as you use it, essentially treating it like a credit card. As long as you can pay it off, you can get more money. 
• Flexible repayment– you can pay off your loan either weekly or monthly. This is entirely up to you, in addition to your payment length, which can be 12, 18, or 24 months. 
• Fast approval and funding– Assuming processing goes smoothly, you can get your funding as soon as the next day.  
• No prepayment penalties– Want to pay off your loan early? No problem. You have no penalties for doing so. 
• Reports to business credit bureaus– Your positive payments on your loan will get reported, meaning you can build your credit with your loan. 
• Lower credit and revenue requirements– Headway Capital is more accessible than other lenders. They allow borrowers to use their services if they have subprime credit and their business makes at least $50,000.

Cons:

• High APR– The 40%-80% APR can get old real fast. This is a very high rate that can make it difficult to get out of debt if your business isn’t thriving at the time of repayment. 
• Weekly payments– This can really strain your revenue flow. Monthly payments may be a better option for many. 
• Not available in all states– If you live in ND, RI, or SD, you do not have access to Headway Capital. 
• Communication delays– There have been some complaints about lags in communication with customer service. This can be a nuisance if you have a dire issue affecting your funds. 

Editor's choice

4.6

• Eligibility: Minimum $7,500 debt, no minimum credit score required.
• Program: 24-48 months, no upfront fees.
• Experience: Decades of trusted services.

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Headway Capital vs. Competitors

Let’s compare Headway to some contemporaries in the business lender scene. This will allow us to see where they excel and where they lag compared to other entities. Here is a breakdown:

Here are a couple of notes from the comparison table. Headway Capital is the most accessible for newer and smaller businesses. This is apparent due to the minimum requirements. They are also more flexible than Fundbox, but they have a higher APR.

Flexible Lending Solutions

5

Lendexpress.net

• Your Best Lending Partner: We match you with top lenders for the best deals.

• Fast, Easy Process: Quick approvals with expert support.

• Tailored Solutions: Flexible terms that fit your needs.

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Customer Reviews and Reputation

As far as reputation goes, based on reviews, there are very consistent points of praise and complaints. Headway Capital, if customer comments and reviews are considered, is a “you what you’re gonna get” type of place. 

Common Praise includes its efficiency and customer service, with reviewers commenting that the lender has “Fast funding, friendly customer service,” and another noting they are “Easy to work with.”

Complaints are generally around high interest rates, aggressive weekly repayment schedule, and inconsistent communication. This is in line with comparison to other small business lenders.

Headway Capital has a B-/ A- rating on the BBB, depending on the branch. They are not accredited, however.

Best Overall Service

4.5

800Financial

• Direct Lending Excellence: Matches you with the best loans with optimal loan terms.
• Comprehensive Loan Network: Loans ranging from $2,500 to $50,000
• Flexibility & Speed: Flexible terms from 3 to 120 months, 24 hours post-approval.

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Final Verdict: Should You Use Headway Capital?

Heres the honest assessment. There is a market for Headway Capital. But there are better options for a large portion of small business owners. Headway Capital is ideal for small business owners who have lower credit scores or sparse credit history due to their subprime credit acceptance. If you value speed and flexibility, you will likely appreciate these qualities in Headway Capital, which is an area they truly accel at.

But if you’re a business with stronger credit, you can definitely find better, cheaper loans elsewhere. Better options would include a bank loan, for example.

Headway Capital can be a useful tool. If you are a fledgling business with less-than-stellar credit, they can definitely help you reach the next level. Just make absolutely sure that you have a reliable and practical plan to pay off your loan, because with that nasty APR, it could potentially get your small business stuck in a cycle of debt

We hope this article serves you well, and remember to always do extensive research on all of your possible options. Never settle! Oftentimes, putting in an extra hour or two in research can save you thousands of dollars down the line. Good luck with your business, and thank you for everything you do for this country!

Headway Capital FAQ: What Small Business Owners Need to Know

1. What makes Headway Capital different from other online lenders?
   The Headway Capital difference starts with flexibility and transparency. Unlike typical offers from online lenders or merchant cash advance (MCA) providers, Headway Capital offers a true line of credit with weekly and monthly repayment options. As a part of Enova International, a publicly traded company and member of the Online Lenders Alliance, Headway Capital is committed to the highest standards of conduct in lending.
2. How does the Headway Capital line of credit work?
   The Headway Capital line is a revolving credit product, meaning you can draw when you need, pay interest only on funds used, and reuse your capital line of credit as you repay it. This lets you cover expenses on a flexible schedule, whether that’s daily operations or growth initiatives. You’ll only need to pay interest on the funds you actually use, with no prepayment penalties, so you can pay off early and save on interest.
3. How fast is funding, and what are the repayment options?
   If approved, you could see funds within one business day, sometimes as soon as tomorrow. This kind of fast funding helps hardworking business owners handle urgent needs without delay. With weekly and monthly repayment plans, Headway Capital gives you room to build a payment strategy that works for your business. It’s that balance between speed and flexibility that sets them apart from many online alternative lenders.
4. Is Headway Capital secure and legit?
   Absolutely. Headway Capital is certified, backed by bank level data security with 128-bit encryption, and your information is protected with bank level security protocols. As a company that has served millions of consumers since 2004, they are committed to the highest standards and act as a partner you can depend on. When applying, your credit is checked using bank-level security, and while applying may impact your credit score, responsible usage can help build business credit long term.
5. Who should consider Headway Capital, and how do I apply?
   Thousands of hardworking business owners across the U.S. have chosen Headway Capital as their business partner. Whether you’re looking for breathing room in your cash flow or quick access to capital, this is a hard-to-create solution designed for entrepreneurs. Use the online form to see if you qualify, learn how much you could get, and potentially receive your money as soon as the business day of approval. If you’re tired of rigid offers from online alternative lenders, Headway may just be the right fit.