Business lines of credit can be difficult to obtain for young businesses. The most advantageous options typically require flawless personal credit scores, substantial annual revenue, and at least a year in business. This is why companies like Headway Capital have become increasingly popular as of late. Their requirements are significantly looser than traditional lenders because they cater to less established businesses with lower credit scores. Even applicants with rocky cash flow can get approved, and you can choose whether to make weekly or monthly payments.
But Headway Capital is far from the only business financing company with loose requirements for business lines of credit. Other advantages of using Headway Capital, like flexibility and transparency, can be found elsewhere as well. And depending on the nature of your cash flow issues, Headway Capital’s product might not be the best option for your needs.
Headway Capital Offers Just One Product
Younger businesses often assume that they have few options for financing products. Once they find a company that is willing to accept their poor credit or little time in business, they might not even think about shopping for other options. If they did continue their search, they would likely find other companies that offer the same requirements and better products for their cash flow circumstances.
For example, Headway Capital’s only product is a business line of credit. Other options include short-term business loans, working capital loans, or a merchant cash advance. So, before choosing a company like Headway Capital, you must ascertain that a business line of credit is indeed the product you should be looking for in the first place. You wouldn’t use a business line of credit for the same purpose as a short-term business loan.
Business lines of credit are most advantageous when you are able to pay off the balance as quickly as possible. If it’s probably going to take you more than a few months to repay what you owe, it might be in your best interest to consider a different product.
Some business financing companies offer business lines of credit in addition to a myriad of other options. If you’re not sure which one makes sense for your business, all you have to do is ask.
Transparency And Speed: Not So Exclusive Anymore
Another common reason to choose a company like Headway Capital is transparency, which is unfortunately rare in the business financing industry. Many companies are very deceptive with the way they promote their rates and fees. They won’t answer any questions unless you fill out an application. Transparency is especially important for businesses that need cash immediately, since this makes them susceptible to accepting predatory offers.
Headway Capital is lauded for its combination of transparency and speed. You don’t have to apply to get a good idea of what your interest rate will be, and applications can be approved in just a few business days (at most). Both features, however, are not exclusive to Headway Capital. A great deal of companies can approve business lines of credit (and other products) at the same speed, even with poor credit and rocky cash flow.
These companies are also aware that the standards for transparency and customer service are rising by the minute. If a company isn’t willing to disclose any helpful information unless you apply, then that company doesn’t deserve your business. Who wants to work with a company that doesn’t convey trust and comfort when speaking to potential clients? The point is, someone shouldn’t choose Headway Capital solely because they are upfront about rates, fees, and policies. Plenty of other companies are just as honest with potential clients. They’ll even tell you if you are making the right decision by choosing them over a competitor.
Headway Capital’s Requirements Are Not Perfect
Lastly, let’s go over some pretty critical imperfections about Headway Capital’s requirements and products. Unlike a number of their competitors, Headway Capital requires a personal guarantee. This means that if the business fails to pay off the debt, Headway can seize the business owner’s personal assets. Even businesses with low credit scores should be able to find business lines of credit and other products that don’t require personal guarantees.
Headway Capital also doesn’t issue business lines of credit for more than $100,000. This is actually considered lower than usual, since many companies offer business lines of credit for $250,000 or more. And finally, it’s important to note that Headway Capital does not work with businesses located in the following states: AK, AR, CT, DE, HI, MI, MT, NE, NV, ND, OH, OR, RI, SD, VT or WV.
Don’t Stop Until You Find The Right Product
The more you learn about Headway Capital’s target market, the narrower it becomes. Nowadays, you don’t have to look too far to find a transparent, customer-focused company that accepts poor credit, less than a year in business, or lower annual revenue. These common dilemmas should not be the main reasons to choose Headway Capital.
This company targets businesses located in 34 states that need a business line of credit (and only a business line of credit) for up to $100,000 and are comfortable signing a personal guarantee. If you do not meet this specific criteria, then you have a wealth of advantageous options to choose from. Your search should not stop until you are 100% certain that you have found the best product for your business.