Looking for Business Capital?
Consider a flexible line of credit to move your business forward.
Select the amount you wish to borrow:
Choose your repayment term
How frequently do you want to make payments?
Apply for a credit limit up to $50,000
Get next-business-day funding after approval
Borrow any time through your online account
What Are Business Credit Cards
Business credit cards generally offer business-specific benefits, such as employee cards and spending controls, with service tailored to the needs of small business owners. These perks allow business credit cards to be used as a business financial tool that entrepreneurs can incorporate into their business strategies.
But a business credit card isn’t for every small-business owner, as they carry risks that more conservative entrepreneurs may wish to avoid. For one thing, they are not covered by the Credit CARD Act of 2009, so creditors can legally engage in practices that have been outlawed in the consumer credit card space. These practices include retroactive interest rate hikes and double-cycle billing.1
1Holmes, T. (February 2013). Used wisely, small-business cards can keep business afloat. Retrieved September 28, 2015 from http://bit.ly/1MUHxzr.
Business Credit Cards vs. Lines of Credit
Business Lines of credit and business credit cards can be effective ways to finance small business operations. And they don’t have to be mutually exclusive; many business owners use both. The products have a number of similarities, including their revolving nature, predetermined borrowing limits and only charging interest on outstanding balances. However, there are differences in the approval process and how it can be used.
While even the best business cards still typically rely on the traditional FICO score to make their approval decision, alternative lenders like Headway Capital will weigh a number of factors into the underwriting decision. You also don’t have to wait nearly as long to access your funds. While it can take weeks to receive your credit card, online approval decision is made in minutes and if approved, funds are available the next business day. Additionally, while credit cards can only be used for transactions in which credit cards are accepted, a line of credit can be used to access cash, which in turn can be used for any business expense — including payroll.
|Headway Capital Line of Credit||Small Business Credit Card|
|What factors into the approval decision?||We consider a variety of factors in our underwriting decision||Primarily dependent on traditional FICO score|
|When will my funds be available?||Funds are available the next business day after approval||Typically takes a week or longer to receive the card|
|How can it be used?||Can be used as cash for any operating expense||Limited to vendors that accept credit cards|
Apply for a Headway Capital Line of Credit
At Headway Capital, we offer small business owners a flexible line of credit with no hidden fees. Lines of credit are similar to business credit cards in that they give business owners access to funds whenever they need it. Unlike some business credit cards, we’ll never raise your interest rate retroactively, and you only have to pay when you use it.
We understand your personal credit score isn’t necessarily representative of the health of your small business. That’s why we take a holistic view of your business, evaluating your application differently than a bank would. We incorporate a variety of factors into our decision model to determine your eligibility and credit limit. So if your business is more than one year old, apply for a line of credit. If approved, you’ll have your money by the next business day.