Features

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.

How Does Headway Capital Work?

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.

What Are Headway Capital's Interest Rates?

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.

How Much Money Can I Borrow from Headway Capital?

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.

Which States Does Headway Capital Operate In?

Headway Capital operates in Alabama, Arizona, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Missouri, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, Washington and Wisconsin.

What Is Headway Capital's Application Process Like?

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.

How Is Headway Capital Better than Other Lenders?

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.

  • Interest APR
    5% - 60%
  • Loan Amount
    $1000 - $30000
  • Max Loan Term (Months)
    18
  • Minutes
  • Same Day
  • 1-7 days
  • 1-2 weeks
  • 2-4 weeks
  • Min Revenue
    $60000
  • Min Years in Business
    1
  • Credit Type Offered
    Line Of Credit
  • Intended Use of Funds
    Business Debt Refinance Equipment Purchase Lease Improvements New Location Product or Service Expansion Working Capital
  • Institution Type
    Direct Lender
  • Approval Speed (Hours)
    3
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After jumping through hoops for the past week, all the while being told we had been approved for a loan, we received an email saying the loan was denied. Very disappointed that we did not receive a phone call explaining the situation. DO NOT RECOMMEND.

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Filling the application they quoted my loan as 18 payments of $1064.01 for a loan of $16200 ($19152.18 total), I did a screenshot because I suspected I would never see that screen again, I completed my application and provided my documents I was approved and the funds were deposited into my bank account, my BIG SURPRISE comes when I noticed in the email the maturity date on dec-2017 (22 months), so I check in the side and they have scheduled 22 payments of $1064.01 ($23408.22 total) $4256.04 more than quoted, ... I contacted them and emailed them my screenshot, and they say it should be a mistake, so they offered me a different deal, 18 payments of $1256 ($22608 total), I didn't accept, so the money were refunded to them, they were not cooperative at all, I ask what would happened if I use the money before I notice that, and they say it wouldn't happen cause they would notice before lol. Didn't honor their offer even when I had proof of their quote, I guess they caught a few customers with same trap. If you apply with them I would recommend to you take a screenshot of the offer, because you will never see that screen again in the process or after, not even in the website, you will see only the balance and scheduled payments. More Less


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