Business Funding

Fund your small business with a Headway Capital True Line of Credit™

What's your desired credit limit?

$26,000

What repayment term works for you?

12 Months

18 Months

24 Months

How often do you want to make payments?

Weekly

Monthly

Weekly Payment Amount^*:

$424.00 Apply Now

We’re currently accepting new customer applications. Applying will not impact your credit score.

^*This business loan calculator assumes a monthly interest rate of 3.3% and a 2% draw fee. Your interest rate and credit limit may vary based on your application. No draw fee in CO, GA, IN, NJ and OK.

Small Business Funding Options

Business funding comes in a variety of shapes and sizes. Learn about the popular types of small business funding, and find out which are the best options for you. Here's the list of 5 options to fund your small business:

1. Business Line of Credit

A line of credit is a lot like a business credit card: A lender approves you for an amount of money that can be drawn on whenever necessary. You only pay interest on the funds you take out. As you repay the lender, your money is available again without having to reapply for the loan.

Pros & Cons: Lines of credit are among the most flexible loans available for businesses, allowing you to withdraw when you need and repay on a flexible payment schedule. One of the few downsides could be the limit. Every business receives a limit on the amount of financing they can draw, but that amount becomes available again as it’s repaid.

2. Short-Term Loan

A loan with a term of 3 – 18 months, generally provided by a bank or an online alternative lender.

Pros & Cons: Can be a good option if your company needs business funding for a quick fix or an emergency, but these tend to have the highest interest rates around.

3. Long-Term Loan

The terms of these loans are generally flexible to a business’s needs and vary as such.

Pros & Cons: Business term loans are good if you have a specific need or goal that necessitates the loan. They can sometimes be difficult to apply for and obtain, and they only allow you to borrow the initial loan amount unless you reapply.

4. Merchant Cash Advance

A merchant cash advance provider reviews a potential borrower’s daily credit card receipts and determines if they can repay the cash advance in a timely manner. Then, a small business “sells” a portion (cost expressed as factor rate) of those credit card sales to the lender to acquire the advance.

Pros & Cons: These can be a reliable method for receiving fast funding, but keep in mind that factor rates are not equal to interest rates. The actual cost is typically more expensive than any other small business funding.

5. SBA Loan

The Small Business Administration is a government agency that helps encourage lending to small businesses by guaranteeing a portion of the loan.

Pros & Cons: Without the SBA’s guarantee, many lenders would not consider working with startups that have little experience or business credit. But SBA loans require more paperwork and more time to secure the loan, and approval is still far from guaranteed. These loans also require good credit.

Where Can I Get Business Funding?

Banks

Traditional banks are generally most business owner’s first thought when trying to obtain business funding. While banks can be a good fit for established businesses with collateral and strong credit, it can be difficult for newer businesses to get loan approval from a bank.

Crowdfunding

In the past several years, crowdfunding websites have made it possible for entrepreneurs to find funding solutions for their business ideas in exchange for perks or equity. This is a good option if your product or idea is interesting and novel enough that hundreds or thousands of people would contribute to making it happen.

Credit Unions

Similarly to banks, credit unions can offer good rates if you are a well-established company. Credit unions are money cooperatives whose members can borrow from pooled deposits at low interest rates. You will generally have to join the credit union, but it may be beneficial for your business to have ties to it if your business is a local enterprise.

Small Business Administration

An “SBA Loan” doesn’t actually come from the SBA, however it is backed by the SBA. This makes it less risky for banks or credit unions to lend you the funds you need. The application process can be difficult, however, and doesn’t always result in approval.

Small Business Grants

If your business is eligible for a business grant, it is a great way to obtain business funding because you don’t have to pay it back. Typically offered by non-profits, government agencies and corporations, there are grants for specific categories of business owners, such as minorities, women and veterans.

Online Alternative Loans

Business owners with less-than-perfect credit who need fast and easy working capital often look to online lenders for their business funding needs. These lenders typically offer a variety of funding options with a variety of different repayment terms, so business owners can find the best funding for their situation.

Fund Your Small Business With Headway Capital

At Headway Capital, we fund qualified businesses with lines of credit up to $100,000. Small businesses can use these funds for a wide range of business expenses, be it for working capital, equipment, inventory or payroll. If 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. As you repay the amount you’ve drawn, your available credit is replenished, so you can keep your business running at full strength at all times.

Credit Line

Up to
$100,000

Loan Type

Business line of credit

Repayment Term

12, 18 or 24 months

No Hidden Fees

See our Rates & Terms for details

Payment Frequency

Weekly or monthly

Clear Cost

Clear payment terms, interest does not compound, no penalty for early payoff

Apply Now

FAQ About Business Funding

Where can I get small business funding?

Small business funding comes in many shapes and sizes, which means it also comes from many places. Some of the most common ways businesses receive funding are through investors, banks, alternative lenders, credit unions, microloan intermediaries, and government grants and subsidies.

What are the types of business funding?

How do small businesses get funding?

How can I get funding for my business with bad credit?

Businesses with bad credit should look to clean up the credit reports of both the owner(s) and the business. Make sure there are no errors on your reports and that you continue to make timely payments on any outstanding debts. Once your credit profile is as presentable as it can be, look for funding types that come with high odds of approval; frequent applications for credit (which may be tempting after rejection) can only further damage your credit score.