First Time Business Loans

Move your business forward with a flexible line of credit.

Select the amount you wish to borrow:

$26,000

Choose your repayment term

12 months
18 months
24 months

How frequently do you want to make payments?

Weekly
Monthly

Weekly payment amount*:

$424.00
Apply Now
See if you qualify in minutes!
*This business loan calculator assumes a monthly interest rate of 3.3%. Your interest rate may vary based on your application information.

How to Get Your First Business Loan

Obtaining your first business loan is a big step for any business, and it’s a step that shouldn’t be taken lightly. Determining how much you need, how long you need to repay it and your best option for funding is a process that takes a bit of research. Let’s start that process by reviewing three things you can do before you apply for a business loan:

1. Know Your Story and Where You’re Going

Business lenders are going to want to know a lot about your past, so it will be important to have your financial and organizational documents ready for presentation. They’re also going to want to know where you’re headed and what you’re planning to use the loan for. Writing a business plan that details how your company operates, the market it targets and where you stand amongst your competitors (and that includes existing and projected financial statements) will help paint that picture for a lender. The better you know the specifics of your company’s past and future, the better prepared you will be for the application process.

Talk to your accountant

2. Talk with Your Accountant

It can be difficult to know how much to ask for when you’re applying for a business loan for the first time. Typically, new businesses need funding to support at least 36 months of growth. By meeting with your accountant or financial advisor to discuss what you really need and what you can repay, you will be just about ready to shop for a loan. Your accountant can also help you develop the financial statements that could be part of your application package.

Build your credit

3. Build Your Credit

As your business (and possibly personal) credit history will be reviewed thoroughly when you apply for a loan, now is an especially important time to be on your best behavior. Many lenders will look at your recent credit history as especially important. Make sure to be making on-time payments, and don’t apply for any loans or credit cards until you’re absolutely prepared and know what you’re looking for. Too many credit inquiries in a short amount of time can appear as a red flag for lenders.

Once you have prepared for the application process, it’s time to start shopping for a loan. A big part of doing that is understanding which type of small business funding would be best for your business’s needs. See our chart below to see which type might be best for you.

Common Types of Small Business Funding

SBA Loans Merchant Cash Advance Business Term Loan Business Line of Credit
Description The Small Business Administration guarantees a portion of these loans. This way, if a business defaults on the loan, the lender doesn’t have as much to lose. A small business sells a portion of their future sales to a company to acquire a cash advance. A lump sum of cash you pay back, plus interest, over a fixed period of time. A lender approves you for an amount of money that can be drawn on whenever necessary.
Advantages Generally comes with great rates Fast and reliable method for receiving funds Longer payment terms and often better interest rates than short-term loans
  • Only pay interest on the funds you take out
  • Flexibility; withdraw as much as you need (up to your limit), when you need to
Disadvantages
  • Lengthy and challenging application process
  • Can be hard to receive approval
Depending on the company and time period, the cost can be more or less expensive than any other loan offering Inflexibility; some companies may charge penalty fees for early repayment
  • Business owners may draw more than they need
  • Some lenders only grant lines of credit to businesses with at least two years experience
Often Good For Businesses with proven success and well-established business credit Businesses that rely on daily sales and have seasonal ups and downs Business needs that require a specific amount of money that can be paid in a specific amount of time Businesses who have intermittent cash flow needs and need regular access to working capital
SBA Loan

Description

The Small Business Administration guarantees a portion of these loans. This way, if a business defaults on the loan, the lender doesn’t have as much to lose.

Advantages

Generally comes with great rates

Disadvantages

  • Lengthy and challenging application process
  • Can be hard to receive approval

Often Good For

Businesses with proven success and well-established business credit

Merchant Cash Advance

Description

A small business sells a portion of their future sales to a company to acquire a cash advance.

Advantages

Fast and reliable method for receiving funds

Disadvantages

Depending on the company and time period, the cost can be more or less expensive than any other loan offering

Often Good For

Businesses that rely on daily sales and have seasonal ups and downs

Business Term Loan

Description

A lump sum of cash you pay back, plus interest, over a fixed period of time.

Advantages

Longer payment terms and often better interest rates than short-term loans

Disadvantages

Inflexibility; some companies may charge penalty fees for early repayment

Often Good For

Business needs that require a specific amount of money that can be paid in a specific amount of time

Business Line of Credit

Description

A lender approves you for an amount of money that can be drawn on whenever necessary.

Advantages

  • Only pay interest on the funds you take out
  • Flexibility; withdraw as much as you need (up to your limit), when you need to

Disadvantages

  • Business owners may draw more than they need
  • Some lenders only grant lines of credit to businesses with at least two years experience

Often Good For

Businesses who have intermittent cash flow needs and need regular access to working capital

What Does Headway Capital Offer?

Headway Capital offers a small business line of credit up to $50,000. As an unsecured line of credit, we don’t require collateral for your loan. At Headway Capital, we take a thorough and holistic approach to reviewing your application, and we see you for more than just your credit score. You just have to meet our minimum requirements to have your application considered:

In business more than 1 year

In business more than 1 year

$50,000 or greater in annual revenue

$50,000 or greater in annual revenue

Based in a state that we serve

Based in a state that we serve
(see Rates & Terms for details)

We strive to make the lending process simple. Once approved, you can borrow as much as you need (up to your credit limit), as many times as you need to, without having to reapply. When you need cash, all you have to do is log in to your online account and request a draw. Your money will be delivered to your bank account by the next business day.

Headway Capital is rated 8.3 out of 10 based on 94 reviews on Trustpilot