Headway Capital is an online lender that provides lines of credit to small and medium-sized businesses. The company is based in Chicago and is a subsidiary of Enova International, a spin-off of Texas-based pawn shop chain Cash America Inc. Enova is a leading online lender that specializes in borrowers with less than perfect credit and owns several lending brands in the United States, United Kingdom, Canada and Australia. In 2014, Enova generated a total revenue of $809.8 million. Headway Capital was launched in 2011 and has an A+ rating with the BBB.
Headway Capital specializes in providing flexible loans to small and medium-sized businesses. Borrowers can use the funds for any legitimate business purpose, such as cover expenses, buy inventory, marketing, hiring and payroll.
The first step is to apply for a line of credit. Once approved, businesses can borrow up to their available credit limit as often as they want. Funds are deposited by the next business day. Borrowers can then choose the loan term and whether to make weekly or monthly payments. There are no prepayment penalty fees, so borrowers can save money by repaying early.
Interest rates vary depending on the credit of the business owners applying and the financial information they provide in the loan application. A typical rate for a Headway Capital line of credit is a monthly interest rate of 5 percent. Interest is not compounding, so a monthly rate of 5 percent is the equivalent of a 60 percent APR. There is also a 2 percent draw fee and late payments do incur an additional fee. However, these are the only fees Headway Capital charges its borrowers.
Lines of credit range from $1,000 to $30,000. In some states there is a minimum initial draw of $5,000. Borrowers can choose repayment terms of six months, 12 months or 18 months. To illustrate the actual cost of Headway Capital loans, a $10,000 loan with a 12-month term and a 5 percent monthly interest rate, would cost $257 a week or $1,129 a month.
Headway Capital operates in Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.
Headway Capital application process is done entirely online, which allows for a fast application turnover. Once approved, funds are usually deposited by the next business day. Although Headway Capital does take into consideration the credit of borrowers when determining eligibility, it also takes looks into other factors, such as the business' cash flow, bank statements, tax returns, and profit and loss statements. Therefore, even borrowers with some dings on their credit may qualify. However, businesses must have been in business for at least a year and have an annual revenue of at least $125,000 to qualify.
Headway Capital provides fast loans with flexible repayment terms and no prepayment fees. The entire application process is performed online, which allows borrowers to apply from their home, office or on their phones with Headway Capital's mobile-friendly site. Interest rates are higher than most banks, credit unions and peer-to-peer lenders, but they provide competitive rates for small to medium-sized businesses who either don't qualify for prime rates or are tired of dealing with slow bank lending. Headway Capital is backed by a leader in online lending; it specializes in small business credit solutions; and has an A+ rating with the BBB.