Payost vs. Headway Capital

Let’s say you’re a relatively new storm restoration company. You have a single truck, maybe 2, and a couple of linemen on the payroll. You just subcontracted with a large company on a week-long job in a neighboring state. And now you’ve returned with no working capital and credit cards you maxed out on the road.

Your reputation isn’t firmly established yet with banks and other lending institutions so you’re not qualified under their preferred lending terms and fees. So how are you going to stay afloat for the next 90 to 120 days until the utility pays off? Headway Capital offers lines of credit to companies like yours. Should you contact them? Let’s see.

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What is Headway Capital?

Headway Capital is a financial services company that offers various lines of credit to small and midsized companies. They’re part of a larger conglomerate known as Enova International. Enova is based in Chicago and also owns the payday lending service CashNetUSA as well as a personal lending company known as Net Credit.

Headway is one of a number of advance finance companies whose ranks include BlueVine, OnDeck, and others. They’re all vying for the attention of businesses in need of an infusion of cash to get them over a rough spot. There’s little doubt that there will be instances when an SME in the midst of a cash flow problem may need what Headway has to offer.

But if you’re a company that has unpaid invoices being held by a utility or other AAA credit rated company, you should navigate away from short-term lines of credit and toward Payost invoice financing. Below, we’ll tell you exactly why that is.


Who are the Target of Headway Capital?

The target customers of Headway Capital are small to medium sized businesses. Companies that are relatively new don’t have access to the most attractive financial products. These businesses often find themselves needing infusions of cash to make it through rough patches. So it’s great that companies exist to help them. But what’s not so great are the interest rates Headway charges. More on that next.

Headway Capital Pros and Cons

Headway Capital has a generally positive reputation for being straight with its customers about what it does and how much things are going to cost. But while honesty is always appreciated in the often cutthroat world of business, that cost is far more than you may be willing to, able to, or even need to pay. Here are the pros and cons of working with Headway:


  • Easier access - Not “easy” but “easier”—as in easier than a bank loan. In many cases, Headway won’t demand you jump through nearly as many hoops to secure a short term line of credit as a bank will.
  • Build your reputation - Both with Headway and in general. Every time you borrow and faithfully repay, your company’s reputation gets a boost. Over time, this should gradually open the door to less punishing interest rates and terms.
  • Cash - This is why you’re borrowing after all. You get the cash you need to bridge the gap between now and when your invoices are paid off.


  • Those rates - Headway Capital short term lines of credit carry APRs that range from 40% to 80%. That’s high even by industry standards for these types of financial products. In addition, they cap the amount you can borrow at either $35,000 or $50,000, depending on the particulars of your company.
  • Fees - Sky high interest rates aren’t the only pitfall when it comes to lines of credit from Headway Capital. Virtually any time you interact with your LOC, you’re going to incur a fee of some kind. And if you don’t use it, you’ll incur fees for that too.
  • Moving backwards - The various costs associated with Headway Capital LOCs may mean it’s actually better for your company to do nothing than work with them. If you establish a line of credit with them, you may wind up getting sucked into a negative cycle of continually having to borrow because so much of your money is going to pay interest.

If you have outstanding invoices with a AAA credit rated company, you shouldn’t even consider a line of credit. Instead you should talk to the pros at Payost and we’ll pay your invoice now—period.



Does Headway Capital Get Good Reviews?

Headway Capital gets good reviews for customer service and bad reviews for their rates. In our opinion, good customer service is important, but good rates are more important when you’re trying to get your business off the ground.

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Headway Capital Application Process

The Headway Capital application process is handled entirely through their website. As with any such company, you’ll first need to open an account. This is a pretty painless process of providing your name, company name, business phone, and email. Once your account is established, you proceed to the application page.

On the Headway application, you’ll need to enter more in-depth information about yourself and your business. They also require information about any business bank accounts. Once you’ve completed and submitted the application, they’ll inform you if you qualify or don’t qualify for one of the LOCs. They normally get back to you pretty quick though you may not hear from them for 24 hours or so.

If they approve your application, they’ll provide you with a maximum credit line they’re willing to extend you, along with the interest rate you’ll need to pay. If you accept their terms, you’ll be asked to submit yet more information, including but not necessarily limited to:

  • Personal tax returns
  • Corporate tax returns
  • Statements regarding profit and loss
  • 3 of your most recent monthly bank statements

After submitting this information, there will be another wait while they assess what you’ve submitted. At this point, they’ll run a hard pull credit check that could negatively impact your credit rating. Once they’re satisfied and everything is in order, they’ll offer you a line of credit (LOC). Once you accept that, you can begin drawing funds. All in all, the application process typically takes anywhere from 3 to 5 business days though it can be longer.


Headway Capital Terms and Fees

In the past, new and underfunded companies had few options when it came to securing bridge financing. Thanks to Payost, those days are over. Still, if you believe that a line of credit is in your company’s best interest, you’ll need to go through the application process we outlined above and accept the company’s terms which means you will need:

  • To have been in business for 1 full year
  • Have annual revenue of at least $50,000
  • Provide a personal guarantee
  • Agree to 12, 18 or 24-month repayment terms


There’s no hard and fast credit score cutoff. But be aware that if your credit is less than perfect, you’re going to learn the meaning of “exorbitant interest rates” (see above where we mention those 80% rates). Because of that, Headway Capital lines of credit are not for the faint of heart.

But if you have unpaid invoices being held by a utility or other AAA credit rated company, those interest rates are not something you need to contemplate. Instead, you should opt for Payost invoice financing. With Payost:

  • There’s no credit check of any kind
  • Approval is based on the creditworthiness of the invoice holder—not you
  • The application process takes about 3 minutes
  • Your qualifying invoices will be paid in hours, not weeks
  • Your dealings with Payost are completely confidential
  • There are no daily, monthly or weekly payments

“The secret of success is to do the common thing uncommonly well.” — John D. Rockefeller Jr.

Headway Capital vs. Payost Comparison

Headway Capital is in the business of providing lines of credit to new small and medium-sized companies. The services they offer, while they’ve helped plenty of companies over the years, should nonetheless be seen as a last resort.

And if you currently have outstanding invoices with a utility or other AAA credit rated company, you would be well advised to avoid these types of LOCs.

Payost invoice financing on the other hand doesn’t offer loans and doesn’t conduct credit checks on you. You’re not required to be in business for any particular length of time and is not going to slap you with 80% interest on your monthly payments because there are no monthly payments.

What we do is verify your invoices and then pay you for them. Period. Later, when the company holding the invoice pays you, you reimburse us plus a modest fee for our service. That’s it.

Bottom Line: Should you try Payost?

If you have unpaid invoices being held by a AAA credit rated company then, yes, Payost is far and away a better option than a Headway Capital line of credit. Payost invoice financing is easier to get and more cost effective than:

  • Lines of credit
  • Invoice factoring
  • Small business loans
  • Bank financing
  • A merchant cash advance
  • Or any other type of advance funding

We’re not in the business of lending you money. We’re in the business of paying you the money you earned so you can get on with growing your company!

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