This Loan Is Good For...
  • Getting cash fast
  • Small loans
  • Businesses with no collateral
If your business needs more than $35k, check out CAN Capital or Kabbage

Headway Capital has been loaning money to small businesses since 2004. They specify in offering lines of credit to small business who need a small cash flow to keep their business running. With their headquarters in Chicago, Illinois, Headway Capital offers funds to borrowers in a select 20 states (see The Bad section below or the sidebar for a complete list of these states). Since 2004 they have offered over $15 billion in loans to over 3 million borrowers.

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The Good

Headway Capital is very distinct from other small business loan lenders because it offers exclusively lines of credit. Whether or not this is a good or bad thing, it caters to a very specific group of business owners: those who only need a smaller amount of money and who plan to pay it back in a shorter amount of time. If prospective borrowers fall in this category then Headway Capital could be a very good option. Benefits of the service include:


A benefit of Headway Capital that is quickly recognizable is the functionality of their website. Their claim to having excellent technology and customer service seems verified by their website and how intuitive it is to use.


In addition to the functionality of their site, Headway Capital makes it known throughout the site that they place a big focus on security. This focus is not something that’s entirely common in the industry, as it should be. With Internet security being as big of a risk as it has been in recent years, it seems that more companies should advertise their Internet security like Headway Capital has done.

Funding Process

Headway Capital offers some great benefits when it comes to their funding process. First of all, they advertise that they can disburse funding within 1 business day after the application has been approved. This is an impeccable turnaround time and should be valued for being faster than most of the industry.

The requirements to receive a line of credit from Headway Capital also seems flexible. While we don’t have very many specifics, we do know that a business only has to be in existence for 1 year before they can qualify for a line of credit. They also claim to take a holistic approach to evaluating applicants instead of simply looking at credit scores. This means that applicants without flawless credit can still qualify.


When approved, each applicant will be notified of the maximum amount of credit for which they qualify. Applicants are not required to take this full amount initially, but will be able to come back for more funding (up to their maximum credit) if it is necessary. This flexibility is surely to be attractive for many prospective borrowers.

Features Summary

In summary, the benefits of Headway Capital are:

  • Intuitive website
  • Focus on security
  • 1 business day disbursement of cash
  • No perfect credit scores required
  • Flexibility in receiving more funding

The Bad

Although we really like the simplicity of Headway Capital’s website, we wish they could be more specific on their basic qualifications: minimum credit report, minimum annual revenue. Limitations of the Headway Capital service include:

Unanswered Questions

While these aren’t very many items missing from the site, these are very important items. Prospective borrowers would need to apply before they could get answers to these questions. (We should also say that even though specifics are not provided, the fact that the Headway Capital website at least mentions these items is better than some other websites we have seen).

Limited Capital

Aside from some missing information, one of the main drawbacks about Headway Capital is how small their funding options are. The maximum line of credit that they can give is $35,000, and when compared to other independent lenders, this amount of money is unsubstantial. This low maximum of funding availability may be the main negative aspect for Headway Capital, although for certain borrowers who require less funding, it could work perfectly.

Loans v. Credit

Headway Capital does not give out businesses loans – they give out lines of credit. For this reason, their interest rates are extremely high. While we cannot directly compare them to other lenders on (because they do not give $100k loans), we can show what you will pay for loans of other sizes:

  • $35k over 12 months = 35.4%
  • $35k over 18 months = 54%
  • $35k over 24 months = 74%

For the most part, any sum of money you borrow between $1k – $35k will fall within the interest rages listed above. These rates are extremely high, even for alternative lenders.


Another potentially negative aspect about Headway Capital is that they do not offer their funding services in all 50 states. They only offer their services in these states: AL, AZ, CA, CO, FL, GA, IL, KS. KY, LA, MA, MO, NJ, NC, PA, SC, TN, VA, WA, and WI.


Headway Capital also lists several different times that they charge fees to borrowers. While the transparency is very noteworthy (many other sites don’t list their fees even though they are sure to reveal them later on in the process), the fees they charge are still something to consider. According to their website, Headway Capital charges fees when:

  • The borrower draws from the line of credit (subject to a 2% draw fee)
  • The borrower makes late payments.
  • The borrower does not have sufficient funds in the bank account at the time of a scheduled payment

Aside from these fees, however, Headway Capital makes the claim that there are no hidden fees.


In summary, the negative aspects of Headway Capital include:

  • Lack of some specific information (interest rates) on website
  • Maximum of $35,000 in credit available
  • Only available in 20 states
  • Some fees

Compare to the top rated business loan companies.

The Bottom Line

The bottom line about Headway Capital is that it’s a great option for a specific group of businesses. It surely won’t work for businesses who are looking for large loans to buy equipment or make other expensive purchases. Yet, it could be a great option for a business who is just looking for a little extra cash during a slow period of business.

When it comes to smaller lines of credit, Headway Capital seems like a great option as a lender because of their focus on transparency, technology, customer service, and security. Of course, prospective borrowers will need to apply before they can find out the exact line of credit that they qualify for and the subsequent interest rates. If your business thinks that Headway Capital could be a good fit, it seems worth it to apply.

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*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.

More Information

Headway Capital’s website is simple and straightforward. They offer FAQs on the bottom of their What We Offer page, and the site is clean and easy to navigate. Their site reflects what they have to say about themselves, which is that they have excellent technology and customer support, allowing businesses to do all their paperwork and repayment online.

Types of Loans Offered

Lines of Credit – Up to $35,000

Rates Offered

36% – 75%
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Term Lengths

12-24 Months
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