Headway Capital is a Utah company that offers a business line of credit from $5,000 to $100,000, with weekly or monthly payments over 12 to 24 months and no penalty for paying early. It asks for 6 months in business and $50,000 in annual revenue, and it only operates in certain states. It is part of Enova International, a company listed on the New York Stock Exchange, per its site, checked October 2026.
A big company does not mean a cheap product, or one that fits you. This review explains how its line works, what each draw costs, which states are left out, how to check the company and how to compare it with other options, including Merchant Fund Express, our recommended funder.
Key takeaways
- Line of credit from $5,000 to $100,000, per its site, checked October 2026.
- Requirements: 6 months in business and $50,000 in annual revenue; it operates in 41 states plus DC.
- Weekly or monthly payments over 12–24 months; you pay interest only on what you draw.
- Each draw may carry a 2% draw fee depending on the state, plus late fees.
- A new draw re-amortizes your outstanding balance: your payment schedule starts over.
- It is part of Enova International (NYSE: ENVA) and holds a California lender license.
What Headway Capital offers
Headway Capital sells one main product, which it calls the True Line of Credit. This is what it publishes on its homepage and FAQ, per its site, checked October 2026:
- Limit: $5,000 to $100,000. Your limit and rate depend on your application.
- How it works: once approved, you draw what you need up to your available limit, whenever you need it. You pay interest only on what you draw.
- Payments: you choose weekly or monthly payments, by automatic debit (ACH) from your business account, over 12 to 24 months.
- Interest: it does not compound, and there is no annual or monthly maintenance fee.
- Fees: each draw may carry a 2% fee depending on your state (it does not apply in Colorado, Georgia, Indiana, New Jersey or Oklahoma), and there can be a late fee. If funds are not there when the debit hits, your bank may charge you for insufficient funds.
- Prepayment: you can repay what you owe at any time with no extra charge.
- Speed: funds are usually sent within one business day after approval.
- Credit: it runs a soft inquiry that does not affect your score, unless your credit file is frozen; in that case it asks you to lift the freeze, which can trigger a hard inquiry.
The sample calculator on its homepage assumes a monthly interest rate. Your actual rate depends on your application, so do not treat the example as your offer. To understand how interest on a line is calculated, read how business line of credit interest works.
What few people explain: draws and re-amortization
A line of credit sounds like a credit card, but Headway's works differently on one important point. According to its FAQ, if you already carry a balance and make a new draw, that balance is re-amortized together with the principal, interest and fees of the new draw, over a new term.
What does that mean in practice? Every draw resets the clock. For example, if you have been paying down one draw for months and you take another, your payment schedule starts over with the whole balance combined. That can be convenient, because the payment does not spike, but it can also mean you never finish paying if you draw often.
Practical rules for using it well:
- Draw for things that pay for themselves: seasonal inventory, a big customer order, a repair that keeps you working.
- Avoid small, frequent draws: the draw fee, where it applies, weighs more on small amounts.
- Check whether your state has a minimum initial draw: its FAQ says some states do, and that it appears on your state's rates and terms page.
- Use early repayment: since there is no penalty, paying early reduces the interest you build up.
Who qualifies and where it operates
The published requirements are simple: at least six months in operation, a minimum of $50,000 in annual revenue, being authorized to borrow on behalf of the business, and being located in one of the states where it operates. Depending on the type of business, it may ask for bank statements, business and personal tax returns, and profit and loss statements.
The states. Its FAQ lists 41 states plus the District of Columbia. That includes California, Florida, Texas, New York, Illinois, Georgia and New Jersey, home to a large share of the country's Hispanic business owners. On the other hand, Arkansas, Connecticut, Michigan, Montana, Nevada, North Dakota, South Dakota, Rhode Island and Vermont do not appear. If your business is in one of those, Headway is not an option.
It fits: a small or midsize business with uneven expenses that would rather pay interest only on what it uses, such as a contractor who buys materials by project or a shop that stocks up before its busy season.
It does not fit: anyone who needs more than $100,000, sells less than $50,000 a year or is in one of the unlisted states. Depending on how your sales come in, also compare a merchant cash advance vs. a line of credit.
Before you apply, sort out three things. First, make sure all your sales land in the business account, because bank statements are the first thing reviewed. Second, if you froze your credit for security, decide whether you will unfreeze it, knowing that can trigger a hard inquiry. Third, decide what you will use the line for and how much you would draw in the first month: if your state requires a minimum initial draw, that number has to make sense for your business and not force you to take more money than you need.
Is Headway Capital legit? How to check
Headway publishes a fair amount of verifiable information. Its site displays reviews from a third-party platform; we do not quote them because we did not verify them. What you can check yourself:
- Legal name and address: Headway Capital, LLC, 4700 W. Daybreak Pkwy., Suite 200, South Jordan, Utah. Look it up in Utah's business registry.
- California license: its site lists California Lenders License number 60DBO 44216. You can look it up on the website of the Department of Financial Protection and Innovation (DFPI).
- Parent company: it says it is part of Enova International (NYSE: ENVA). As a public company, Enova files public reports you can read.
- Apply only at headwaycapital.com, typing the address yourself.
- Do not pay anything upfront. Headway says it charges no annual or monthly maintenance fees; any upfront charge to "release" the line is a red flag.
More warning signs in how to spot a business funding scam.
Headway Capital alternatives
- Funding based on sales and deposits, if you need more than $100,000 or your state is not on the list. Merchant Fund Express, our recommended funder, works from $5,000 to $5,000,000, reviews sales and deposits as well as credit, and accepts scores from FICO 500. Decisions often come in 2 to 4 hours, collateral is not required in most cases, it offers Spanish-speaking support and it accepts applicants with an ITIN (no SSN needed). Applying is free and does not affect your credit.
- A bank line of credit, if you have good credit and a relationship with your bank: it usually costs less, though it takes more paperwork.
- A business credit card, for small expenses you pay in full every month.
- A term loan, if you need a fixed amount for a single large purchase.
If you want to use a line to build your business credit history, read how to build business credit with a line of credit, and ask any provider whether it reports to the business credit bureaus.
Honest comparison: Headway Capital vs. Merchant Fund Express
Headway facts per its site, checked October 2026. Recommended funder facts per its published information.
| Point | Headway Capital | Merchant Fund Express |
|---|---|---|
| Product | Revolving line of credit | Funding matched to your profile |
| Amounts | $5,000 to $100,000 | $5,000 to $5,000,000 |
| Requirements | 6 months and $50,000 a year | Reviews sales and deposits as well as credit; from FICO 500 |
| States | 41 states and DC | Ask about your state when you apply |
| Speed | Funds within one business day after approval | Decisions often in 2 to 4 hours |
| Published fees | Up to 2% per draw depending on state; late fee | Review the fees in your offer |
| Credit impact when applying | Soft inquiry | Free, no impact to credit |
| Collateral | Check your contract | Not required in most cases |
Decision rule: if you need less than $100,000 on a recurring basis and you are in a state where it operates, Headway's line can make sense. If you need more, your state is not on its list, or you want a second offer, compare before you sign. Prefer Spanish? Leer en español.
Frequently asked questions
What are Headway Capital's requirements?
Per its FAQ, checked October 2026: at least six months in operation, a minimum of $50,000 in annual revenue, and being located in one of the 41 states or the District of Columbia where it operates. The applicant must be authorized by the business. It may ask for bank statements, tax returns and profit and loss statements.
Does applying to Headway Capital affect my credit?
It says it runs a soft inquiry when you submit the application, which leaves no mark and does not affect your score. The exception is a frozen credit file: in that case it asks you to lift the freeze with the bureau, and that can trigger a hard inquiry. Check whether you have a freeze before applying.
How much does Headway Capital charge per draw?
Its FAQ says draws may carry a 2% fee depending on your state, and its homepage notes it does not apply in Colorado, Georgia, Indiana, New Jersey or Oklahoma. On top of that there is interest on what you draw and possible late fees. It charges no annual or monthly maintenance fee.
Does Headway Capital operate in Nevada or Michigan?
They are not on its list. Its FAQ names 41 states plus the District of Columbia and does not include Arkansas, Connecticut, Michigan, Montana, Nevada, North Dakota, South Dakota, Rhode Island or Vermont. If your business is there, you will need another line of credit option.
What happens if I draw again while I still have a balance?
According to its FAQ, the existing balance is re-amortized together with the principal, interest and fees of the new draw, over a new term. In practice, your payment schedule starts over. It keeps the payment manageable, but if you draw often you can end up paying for much longer.
What Headway Capital alternative do you recommend?
If you need more than $100,000 or your state is not on its list, we recommend comparing with Merchant Fund Express, our recommended funder. It works from $5,000 to $5,000,000, reviews sales and deposits as well as credit, and applying is free with no impact to your credit.