With APRs in the triple digits, this is best saved as a last resort.

  • Best for industries that struggle to qualify for funding.
  • Pick something else if you need more than $10,000.

    $2,500

    Min. Amount

    $10,000

    Max. Amount

    Details

    Product Name Bitty Advance
    Min. Amount $2,500
    Max. Amount $10,000
    Loan Term 3 to 9 months
    APR N/A
    Requirements $5,000 monthly bank revenue, 6+ months in business, business bank account open 3+ months, 400+ credit score

    How much will this loan cost me?

    Rather than charging interest, your business pays a fixed fee. In the past, fees ran from around $0.40 to $0.60 on the dollar. While we originally confirmed these costs by speaking with a customer service representative, we weren’t able to confirm them when we reached out in May 2020.

    When you take out a loan, there’s also a processing fee and ACH fee, which can vary depending on the customer. And you also have to pay a monthly maintenance fee of $49. Repayments are due every day or week — depending on your contract.

    How it works

    Loan amounts range from $2,500 to $10,000. How much you can borrow depends on your sales. Typically, businesses qualify for between 60% and 75% of their average monthly revenue over the past three months.

    You can renew your Bitty Advance financing after you pay off around half of the loan balance — halfway through the term. A member of the Bitty Advance team will contact you when you’re eligible to go over your renewal options. But you might want to think twice before renewing such a high-cost product.

    Must read: Beware of over-borrowing

    With such liberal credit requirements, high costs and an option to renew before you’ve fully paid off your loan, it can be easy to get your business stuck in a cycle of debt. Before you borrow, make sure you’ll be able to make the relatively high and frequent repayments that come with this short-term product.

    Also take the time to look into other options available to you now. For example, businesses that are just starting out might benefit from a low-cost microloans. Reach out to a local Small Business Development Center (SBDC) to find out which options are available to you.

    What do I need to qualify?

    You must meet the following criteria to qualify for a Bitty Advance business loan:

    • Credit score of 400 or higher
    • $5,000 monthly bank revenue
    • At least six months in business
    • Business bank account open at least three months

    What information do I need to apply?

    You need to provide the following documents when you apply for a Bitty Advance business loan:

    • Three months of bank statements
    • Voided check
    • Driver’s license

    What industries does Bitty Advance work with

    Bitty Advance doesn’t restrict any industries from applying for an advance. It’s unclear if this includes industries that fall into a legal gray area, like cannabis or CBD. But your business needs a bank account to qualify, which might rule out most businesses in those industries.

    Pros and cons

    From its fast turnaround to its lenient eligibility requirements, there are a few perks to borrowing from Bitty Advance. But these might be outweighed by the drawbacks.

    Pros

    • Low revenue, credit and time in business requirements
    • Turnaround as fast as the same business day
    • Works with all industries

    Cons

    • Cost as high as APRs from 90% to 330%
    • $49 monthly maintenance fee
    • Website isn’t transparent about cost or terms
    • Daily or weekly repayments

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