Headway Capital Review

ByTop10 StaffFeb. 16, 2020

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In a Nutshell

Headway Capital offers unsecured business lines of credit to small businesses. Owned by the publicly traded company Enova International, Headway works with businesses that have been in operation for at least 1 year and have at least $50,000 in annual revenue. Its “True Line of Credit” lets businesses withdraw funds whenever they need, up to their available credit limit.


  • Loose minimum requirements
  • Draw money at any time, with next-day delivery
  • Funds can be used for any business purpose


  • Offers only lines of credit
  • In some states, borrowers are charged fee for each withdrawal

Headway Capital at a Glance 

Loan typesBusiness lines of credit
Loan amount$5,000 to $100,000
Repayment terms12, 18, or 24 months
Min APR40.00%
Best forSmall-business owners with cash flow or credit issues


Headway Capital is an online lender specializing in revolving lines of credit for small businesses in 36 states. The key word here is “revolving,” meaning you can keep borrowing more funds as your principal is paid down. Backed by analytics technology from sister company Enova Decisions, Headway shows business owners whether they qualify for a business loan in minutes. Its payment terms are transparent, with no compound interest or prepayment penalties, although in certain states it does charge a fee each time the borrower draws on their line of credit.

Best For?

A business line of credit offers a number of advantages over a business loan or credit card. It can help your business manage cash flow if you’re in an industry where sales can fluctuate wildly between the good months and the lean months. It can be handy having a line of credit if you foresee the need to purchase supplies that cost more than your credit card limit but are too cheap to justify taking out a business loan. And it can also serve as a source of emergency funds if you’re going through a rough period. In Headway Capital’s case, the lack of strict minimum credit requirements makes it a good choice for businesses struggling to get funding elsewhere. With Headway Capital, you pay interest only on the funds you draw, so you can pay off early without having paid extra interest, which can also help with cash flow. 

Loan Features

Headway Capital offers 1 primary product: unsecured business lines of credit. Its website can be a little confusing, because it contains information about business loans and cash advances, but all these things lead back to the same thing: an application form for Headway’s “True Line of Credit.” 

A line of credit gives you:

  • Line of credit up to $100,000
  • One-time approval, but draw funds any time up to your available credit limit without extra "front loaded" interest charges like other lenders. 
  • Funds sent by next business day each time you draw
  • Weekly or monthly repayment (up to 24 months, an industry advantage giving you lower payments)
  • No early repayment fees

The Application Process

Business owners can apply for a line of credit online or by phone. It takes only a few minutes to find out if you qualify for a line of credit from Headway. Simply enter your desired term, credit limit, and frequency of payments (weekly or monthly). 

Then fill in information about yourself and your business, including:

  • Contact details
  • Address
  • Intended use of funds
  • Social Security number 

Within a few seconds, you’ll be redirected to a screen showing you if you’ve qualified, with accompanying APR. Headway doesn’t make any promises as to how long it takes to get final approval, but judging by customer reviews the process is relatively quick and painless. When you draw on your line of credit, the funds land in your business bank account within 1 business day. Headway runs a soft credit check when you apply, and a hard credit check after you sign the contract.

Applicants must meet the following conditions:

  • Applicants must be authorized to take out a loan or line of credit on behalf of the business
  • Minimum annual revenue of $50,000
  • Business must have been in operation for at least 1 year
  • Personal credit score is 1of the factors Headway considers when determining your eligibility, although it doesn’t have a strict minimum credit score
  • Business must be located in 1 of these 36 states: AL, AZ, CA, CO, DE, FL, GA, ID, IL, IA, IN, KS, KY, LA, ME, MD, MA, MN, MS, MO, NE, NH, NJ, NM, NY, NC, OK, PA, SC, TN, TX, UT, VA, WA, WI or WY.

How Much Can You Borrow? 

Lines of credit range from $5,000 to $100,000. A line of credit is different from a loan, in that you can draw whatever you need—up to your credit limit and with Headway Capital you only pay interest on the funds you've withdrawn. As you make repayments, you replenish your credit limit. Minimum initial draw amounts vary from state to state.

To understand how this works, let’s say your line of credit is $10,000. If your first withdrawal is for $2,000, that means you’ll have an $8,000 remaining credit limit. If you pay back $1,000, you’ll now have $9,000 credit to draw upon. 

Repayment Terms

A Headway line of credit involves the following repayment terms and conditions:

  • Terms are 12, 18, or 24 months
  • Repayments are made on a weekly or monthly basis
  • Compound interest isn’t applied
  • There are no prepayment penalties
  • There are late payment penalties
  • In some states, borrowers are charged a 2% fee each time they draw funds

Privacy and Security 

According to Headway, it protects your information with bank-level security and 128-bit encryption. The Headway Capital website is certified by Norton and McAfee.

Help & Support

Headway’s US-based customer service team is available Monday to Friday, 8:30am to 6pm CT, by phone or email at support@headwaycapital.com.


Headway Capital offers a suitable source of funding for small businesses with poor credit or trouble managing cashflow. Its minimum qualification requirements are flexible enough to include many businesses that might not qualify for traditional business loans. And its service is quick, with an approval decision in minutes and funds in your account within 1 business day and no interest paid on funds you don't withdraw.

Physical Address

Headway Capital, LLC

175 W. Jackson Blvd., Suite 1000

Chicago, IL 60604

Headway Capital