Find answers to our most frequently asked questions below.
What does Headway Capital offer?
Headway Capital offers business lines of credit ranging from $5,000 to $100,000 for businesses. Once approved, your business can borrow as much money as it needs, whenever it’s needed, up to the available credit limit. With each draw, you can select the repayment schedule that best suits your needs. Depending on your state, you may have a minimum initial draw amount.
Does my business meet the minimum criteria?
In order to be eligible to apply for our small business loans, your business must have been in operation for at least six months, have a minimum annual revenue of $50,000, and must be located in one of the following states or districts: Alabama, Alaska, Arizona, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. To complete a Headway Capital application, you must be authorized to take out the loan on behalf of your business.
How secure are the Headway Capital online forms?
How will my funds request be evaluated?
We understand that 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. Depending on the nature of your business, you may be asked to provide some combination of the following documents for verification purposes: bank statements for your business bank account, corporate tax returns, personal tax returns, and profit and loss statements.
Will you pull my credit report/score when checking my eligibility?
Your personal credit history is one of many factors that Headway Capital uses when determining your eligibility for funds. We perform a soft credit pull at the time of the application submission. This will not leave a footprint on your credit report and will not impact your credit score unless your credit file is restricted, in which case we would ask you to contact the credit bureau to lift the restriction. Doing so may result in a hard pull.
How soon can I receive funds?
Once approved, funds will typically be deposited into your business bank account by the next business day.
What can I use the money for?
Funds from your Headway Capital line of credit can be used for any legitimate business purpose, including making payroll, covering bills and expenses, marketing, hiring, training, and purchasing equipment and inventory.
What are the terms of a Headway Capital True Line of Credit™?
The interest rate and credit limit you are awarded may vary based on the information provided in your application. Interest does not compound and there is no annual or monthly service fee. Draws from your line of credit may be subject to a 2% draw fee depending upon your state, and you may be assessed a late fee for late payments. If sufficient funds are not present in your bank account at the time of a scheduled payment, your bank may charge you a non-sufficient funds (NSF) fee. There are no hidden fees with a Headway Capital line of credit.
Will my line of credit have a minimum initial draw?
Minimum initial draw amounts may vary based upon your state. Please refer to your state's Rates & Terms page to see the minimum initial draw requirements, or call us at 866.698.8494.
Can I make multiple draws against my line of credit?
As long as you have available credit and your account is in good standing, you may draw money at any time up to your available credit limit (your first draw may be subject to a minimum initial draw amount in certain states). If you have an existing balance when you make a draw, that balance will be re-amortized over your new repayment term along with the principal, interest and fees of your new draw.
How does repayment work?
When you request a draw from your line of credit, you will either be offered a choice of repayment terms or given a predetermined repayment term, depending upon the requested draw amount. Part of your principal balance is repaid with each minimum payment according to a prearranged schedule. Payments are auto-debited from your business's bank account via ACH. You can choose whether to make weekly or monthly recurring payments.
Can I repay early?
Yes, you can repay your outstanding balance at any time without incurring any additional fee.
What should I do if I'm going to miss a payment?
If you're unable to make a scheduled payment, call our customer service center at 866.698.8494 as soon as possible so we can discuss your payment options.