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

  • 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