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