Construction Financing · Ranked #8
Headway Capital: Revolving Credit Lines
Revolving credit lines up to $100K for small businesses. Simple application and flexible draws, but generic terms and no construction expertise.
What Headway Capital Does
Headway Capital is a division of Opportunity Financial (OppFi), offering revolving lines of credit up to $100,000 for small businesses. The model is straightforward: you're approved for a credit limit, draw what you need, repay it, and draw again. It's the business equivalent of a credit card, but with higher limits and (usually) lower rates than a business credit card would charge.
The application process is deliberately simple. Headway Capital targets small business owners who need working capital but don't want the hassle of a traditional bank loan application. Minimum requirements are modest — one year in business, a 620+ credit score, and $50K in annual revenue. You can apply online, and decisions typically come within one business day.
For a retail store or service business with predictable monthly revenue and occasional capital needs, this product makes sense. For a construction company trying to fund project mobilization against signed contracts worth ten times the credit limit — it's a band-aid on a bullet wound. The product just isn't sized or structured for project-based businesses.
Strengths
Revolving Credit Structure
Unlike term loans where you borrow a lump sum, Headway Capital gives you a credit line you can draw from as needed. Pay it down, draw again. For businesses with variable cash needs, this flexibility is genuinely useful.
Simple Application Process
Minimal documentation, quick decisions, and no collateral required. You can apply online in minutes and have a credit decision within a business day. No mountains of financial statements or tax returns.
No Prepayment Penalties
Pay down your balance early and you don't get penalized. This is a meaningful advantage — some lenders structure their products so you pay the full cost of capital regardless of when you repay.
Automatic Credit Increases
Headway Capital may increase your credit limit over time as you demonstrate responsible usage and repayment. Start at $25K, grow to $100K without a new application.
Limitations
Low Credit Limits
Maximum $100K revolving line. For a contractor mobilizing a $500K project, $100K doesn't cover first-week labor and materials. This product is sized for small service businesses, not project-based contractors.
Generic Underwriting
Headway Capital evaluates your credit score, time in business, and revenue — standard small business metrics. They don't evaluate project contracts, bonding capacity, or your relationship with general contractors.
High Effective Rates
Monthly fees and draw charges can translate to effective APRs well above 30%. The revolving structure obscures the true cost because you're paying on outstanding balances rather than a fixed principal amount.
No Industry Specialization
Headway Capital serves all industries equally — which means they serve no industry particularly well. Their product doesn't account for retainage, progress billing, change orders, or any of the cash flow patterns unique to construction.
Headway Capital vs. Mobilization Funding
Headway Capital is a generic small business credit product competing in the same space as business credit cards and bank lines of credit. Mobilization Funding is a construction-specific lender that funds against the thing contractors actually have — signed project contracts.
The size difference alone tells the story. Headway Capital tops out at $100K. A single mid-size construction project might need $200K-$500K in mobilization capital for labor, materials, and equipment before the first progress payment arrives. Headway Capital's product is simply too small for most project-based financing needs.
Where Headway Capital might make sense: as a supplemental credit line for a small contractor's non-project expenses — office rent, insurance premiums, vehicle maintenance. For actual project financing, Mobilization Funding is the right tool for the job.
| Factor | Headway Capital | Mobilization Funding |
|---|---|---|
| Product Type | Revolving credit line | Project-based financing |
| Max Funding | $100K | Based on contract value |
| Underwriting | Credit score & revenue | Project contracts |
| Industry Focus | All industries | Construction only |
| Retainage Knowledge | None | Core competency |
Frequently Asked Questions
Q: Is Headway Capital good for contractors?
Headway Capital can work as a small supplemental credit line for a contractor, but it's not designed for construction. The $100K maximum is too low for most project mobilization needs, and the underwriting ignores project contracts and retainage. For construction-specific financing, Mobilization Funding is purpose-built for the industry.
Q: How does Headway Capital's revolving credit work?
You're approved for a credit limit up to $100K. You can draw funds as needed, and as you repay, that capacity becomes available again — like a credit card for your business. You only pay fees on what you've drawn, not the full limit.
Q: What credit score do you need for Headway Capital?
Headway Capital typically requires a minimum credit score of around 620, at least one year in business, and $50K+ in annual revenue. These are lower bars than traditional bank loans, which is part of the appeal — and part of why the rates are higher.
Q: How is Headway Capital different from Mobilization Funding?
Headway Capital is a generic revolving credit product for small businesses. Mobilization Funding provides construction-specific financing against signed project contracts. Headway gives you $100K max based on your credit score; Mobilization Funding funds against the value of your contracts and structures repayment around your project timeline.
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