Many small business owners require financing help to support operations and fuel growth. Unfortunately, traditional business loans often require excellent credit and can take a long time to approve and fund.
Alternative business funding providers like Bitty Advance aim to help entrepreneurs bypass traditional lending criteria and access needed capital in just a few days. However, the business cash advance provider might not be the right fit for every company due to low amounts and high repayment costs.
This review explores what you should know about Bitty Advance, including the benefits, drawbacks, and application process to help you make an informed decision. Specifically, we’ll answer these questions and more:
Bitty Advance is a newer company but already a leader in the Merchant Cash Advance (MCA) sector, offering financial support to numerous entrepreneurs across the United States. MCAs involve an agreement where a business owner receives an immediate cash advance for a portion of their future business revenue.
This financing option is widely utilized by various small businesses, such as restaurants, trucking companies, medical practices, construction firms, consulting agencies, healthcare providers, childcare centers, etc. It provides a flexible and accessible funding source for businesses looking to meet their financial needs and support growth initiatives.
Founded in 2018, Bitty Advance is relatively new in the funding world. Many small businesses struggle with obtaining loans from banks. Bitty Advance aims to fill this gap by providing capital when the banks won’t. The company understands that small business owners often face challenges when accessing capital. They provide an easier option for those who may not qualify for traditional financing.
The company does not accept direct applications from small businesses. Instead, it partners with various affiliates and brokers who process the application and act as facilitators between Bitty Advance and the small businesses it funds. Bitty Advance is headquartered in Dania, FL.
Bitty Advance is a merchant cash advance company that helps businesses get quick funding for working capital. The funding process is simple and fast. Businesses apply for cash based on their future sales, which means they can receive money even if they don’t have perfect credit.
Bitty Advance features:
A merchant cash advance is a transaction where a funder buys a business’s future receivables at a discounted rate in exchange for immediate cash. The funding amount is usually based on the business’s sales history and projected sales, with higher sales volumes often resulting in more significant cash advances. This type of funding can provide businesses with quick access to capital based on their expected revenue.
Understanding costs is essential. Bitty Advance uses factor rates instead of traditional interest rates. These factor rates usually range from 1.1 to 1.65. This means if a business borrows $10,000 with a factor rate of 1.2, it will pay back $12,000 over time. Payments are made as a percentage of daily sales, which makes it easier for businesses during slow periods.
Users register for Bitty Advance and connect their business bank accounts. The company uses that banking information to determine approval and funding amounts. Bitty Advance transfers the funds to that bank account and debits the account with automatic ACH transfers during the repayment period.
One of the primary benefits of Bitty Advance is that the qualifications are much more lenient than most business financing options. Applicants do not need good business credit for approval. However, building business credit is crucial as it can provide access to more advantageous funding options. Users must have a dedicated business bank account.
The qualifications are:
Merchant cash advances are a business transaction and not a loan. A loan requires monthly payments and interest. In contrast, a cash advance takes a portion of future sales. This means repayment is flexible based on revenue.
Bitty Advance only uses a soft credit pull. This type of inquiry does not impact your credit score. Many businesses worry about their credit when seeking funding. You can apply without this concern with Bitty Advance.
The company also offers a unique early repayment discount. Businesses that pay off their advance early can save money. This discount encourages timely repayment. It helps businesses manage their cash flow better.
The funder can be vague about specific details. The website does not publish factor rate ranges or terms. Some online reviews suggest terms range from 90 to 180 days, and factor rates extend as high as 1.65. In addition, one review states the company charges a monthly service fee of $4.99.
However, we could not confirm these numbers on the company’s website. Carefully review any MCA agreement to ensure you understand the costs, terms, and repayment structure.
Bitty Advance primarily operates as a business funding affiliate program. ISOs and business loan brokers should contact the company directly to inquire about affiliate programs.
Business owners cannot apply directly to Bitty Advance. Instead, applications typically go through various affiliate partners. Most affiliates provide quick and easy applications.
The process starts with applying through an affiliate’s online application or calling them directly.
After applying, you’ll gain access to Bitty Advance’s online customer portal. You’ll connect your business bank account once you establish your online account and credentials.
Once approved, Bitty Advance sends a funding offer. Carefully review the terms and repayments.
If the agreement looks good, you’ll sign to finalize the merchant cash advance.
After signing the agreement, Bitty Advance transfers the funds to your business bank account, typically the next day or the same day.
Bitty Advance doesn’t publish the repayment frequency, but most merchant cash advances require daily, weekly, or bi-weekly repayments. Repayments are automatically debited from your business bank account according to the terms outlined in the agreement.
The funder offers a Pay-in-Full discount. One site suggests that users can save 30% on advances paid in full in the first 30 days or a 20% discount if paid in full in the first 60 days. However, we couldn’t confirm this. Ensure you check your agreement.
Part of being a customer with the company means getting a dedicated Bitty Advance account manager as part of the customer service team. Users also get 24/7 access to the online portal.
A successful repayment history can earn more funding. This could come in the form of a renewal with favorable terms after repaying in full or obtaining add-on funds after repaying a certain percentage.
Bitty Advance offers several benefits that help users manage their finances effectively. The primary benefit of any merchant cash advance is quick access to funds. Bitty Advance allows for fast funding after approval, which helps individuals and businesses cover unexpected expenses without delays.
Users also appreciate the flexible repayment options. They can choose a plan that fits their budget and financial situation. This flexibility eases the stress of managing repayments.
Another key advantage is having a personal Bitty Advance account manager. This dedicated professional provides tailored support and guidance, and users can receive personalized advice to meet their specific needs. In addition, the company’s early repayment discounts can help users save money.
Bitty Advance has some drawbacks that users should consider. One major issue is its high fees. Merchant cash advances are often one of the most expensive forms of business financing. Users often pay more than expected, affecting their overall savings and investment returns.
Users cannot apply directly to Bitty Advance. You must apply through an affiliate or broker.
The company is also vague about details regarding factor rates and terms. This is likely because it primarily works through affiliates and brokers, who appreciate the opportunity to discuss deal specifics directly with their clients.
Finally, the company has multiple negative reviews and Better Business Bureau complaints concerning high costs, misleading sales tactics, and poor customer service. While it also has many positive reviews, the negative comments highlight the importance of exercising caution when taking out a merchant cash advance.
Pros:
Cons:
Yes, Bitty Advance is a legitimate business cash advance company that provides funding to small businesses that need quick access to cash. Many customers have reported positive experiences with their services and appreciate the fast application process and quick funding times.
Bitty Advance has mixed, often polarized reviews, which is common in the business funding industry. It has a 4.5 out of 5 on over 400 Trustpilot reviews, a 3.8 out of 5 on over 170 Google reviews, and a 1.6 out of 5 on 8 BBB reviews.
Positive Bitty Advance reviews frequently mention quick funding. Customers appreciate how fast they can access funds after approval. Many users also praise the straightforward terms and repayment process. They find it easy to submit their information online. Some positive feedback
also noted that the staff is helpful and responsive to inquiries.
Conversely, negative Bitty Advance reviews raise important concerns. Some users report issues with hidden fees that were not clearly explained upfront, while others express frustration over long wait times for customer service responses.
However, we should note that some negative reviews came from users who confused a merchant cash advance with a business loan, falsely believing they could save on interest through early payment towards principal. Other negative reviews came from users who defaulted.
Bitty Advance aims to make business funding more accessible and considers all industries. However, it may deny funding applications for various reasons, such as low credit scores, low or inconsistent sales history, or other factors that would make the deal high risk.
If you were declined, the denial letter should explain why, offer tips on improving your application, and when you can apply again. If not, or if you need more information, contact Bitty Advance or your broker for further assistance.
Fortunately, small business owners can access a diverse range of lenders if Bitty Advance doesn’t work out for them. Many lending options can provide a merchant cash advance, as this is one of the most accessible business funding programs available.
You may also be interested in one of the following small business loans:
Bitty Advance offers a quick solution for your funding needs to help your business achieve success. It’s easy to understand how it works and what you need to qualify. However, it can be an expensive option for business funding.
If you’re considering applying, weigh your options carefully and make sure it fits your financial goals. Established businesses with good credit and high revenue can likely qualify for more advantageous options.
Based on the available information, we rate Bitty Advance 3.9 out of 5. It stands out for quick funding and the early payoff discounts, but the lack of details and inability to apply directly prevent it from a higher score.
Disclaimer: The Bitty Advance trademark is owned by Bitty Advance 2, LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Bitty Advance 2, LLC.
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