Bitty Advance Review: Fast Cash but Serious Red Flags
If your business loan broker has put a Bitty Advance offer in front of you, proceed cautiously. Many customer reviews and complaints cite predatory practices.
Overview
The bottom line:
Bitty considers newer and bad credit businesses for its merchant cash advance. But the company offers next to no information on its website, and a host of customer complaints raise some real concerns
Loan details
Min. Loan Amount
$1,000
Max Loan Amount
$50,000
Qualifications
Min. credit score
500
Min. Time in Business
6 months
Min. Annual Revenue
$60,000
Pros & Cons
Pros
Can be approved within 24 hours.
Borrowers with low credit scores may qualify.
Offers early repayment discount.
Cons
No transparency online about interest rates, loan terms or additional fees.
Can only contact provider via online form; no email address or phone number listed.
Can’t be used to build business credit as Bitty does not report payments to credit bureaus.
Bitty Advance offers merchant cash advances (MCAs), also called revenue-based financing. These should not be confused with small-business loans
» Learn more about factor rates
You won’t find much information at all, or even an application, on Bitty’s website. This is because the company works exclusively with brokers and does not accept direct applications from business owners. Our team managed to track down a customer service number for Bitty buried within its privacy policy. We got connected quickly with a representative who was friendly and helpful in providing the details we list on this page.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Consider Bitty Advance cash advances only if you:
⚠️ Are diligent about reading agreements thoroughly before signing. Bitty can likely get cash into your hand a lot faster than a bank or SBA lender
Details of a merchant cash advance
We’ve scoured TrustPilot and Yelp reviews, Better Business Bureau complaints and Reddit threads discussing Bitty’s MCA product. These forums are packed with negative customer reviews. And one common factor we noticed among many of these unfortunate circumstances is that borrowers did not carefully read and fully understand the agreement before signing with Bitty.
Not feeling good about Bitty? (Understandable.) Consider these lenders instead.
Find the true cost of an MCA
It’s not easy to understand the full cost of a merchant cash advance. Providers often use factor rates in place of interest rates, and payment amounts may fluctuate with your monthly sales, depending on your agreement. Use our calculator to understand how much an MCA could really cost you.
» MORE: Merchant cash advance calculator
Bitty merchant cash advance details
| Loan amount | $1,000 to $50,000. |
| Estimated APR range | Bitty charges an undisclosed factor rate. |
| Fees |
|
| Terms | No maximum term length; payment plan provided at signing. |
| Repayment schedule | Daily or weekly. |
| Funding speed | Approval within 24 hours. |
A summary of customer sentiment:
Beware of Bitty
Across 100 1-star TrustPilot and Yelp reviews as well as 16 complaints to the Better Business Bureau over the past three years, a few themes emerge that point to predatory lending practices:
- Unprofessional communications. Customers mention that account managers are unresponsive to communications related to financial hardship (for example, requests to
pause payments - Dishonest payment collection. Many customers believe that Bitty made unauthorized or inaccurate withdrawals from their accounts. In some cases, these customers cite additional fees, then, from their banks due to overdrawn accounts.
- Lack of transparency . Bitty’s own website offers very little information about the product or its terms. The site uses a lot of language commonly associated with business loans, such as “working capital,” “funding solutions” and “flexible funding.” Many customers complain of not having understood the true nature of the product and all that it entails (including a monthly service fee) before signing the agreement. At least one business owner states that Bitty mismarketed its product as a microloan rather than a merchant cash advance.
NerdWallet highly recommends searching for financing elsewhere. We’ve given you a list of great places to start below. ⬇️
Alternatives to Bitty Advance
If you don’t have ideal qualifications or you need cash fast, a merchant cash advance from a company like Bitty Advance may seem like your only option. But other lenders may offer funding that meets your needs. Consider these alternatives:
Fundbox
Best for: New businesses in need of fast and flexible funding.
Fundbox
Fundbox - Line of credit
NerdWallet Rating
4.7
Min Credit
600
Apply now with Fundera by NerdWallet
🤓
A business line of credit can be a valuable financing tool for a small-business owner. Many online lenders can review, approve and fund your business in a few days or less. You can keep a line of credit on hand for when you most need the funds. Draw only the amount you need at the time you need it, and only pay interest on the amount you withdraw. See our complete list of the Nerdy Tip
SBA Microloan
Best for: Women, minority and low-to-mid-income business owners.
U.S. Small Business Administration
SBA microloan
Min Credit
620
with Fundera by NerdWallet
Rates are competitive, terms are long and you can use the funds for a variety of purposes. Funding times vary depending on the nonprofit that issues the microloan, but they do typically take longer than online loans. You will also likely need to put up collateral to back the microloan.
» MORE: Explore our loan recommendations for women entrepreneurs minority business owners
AltLINE
Best for: Business-to-business companies with money tied up in unpaid invoices.
AltLINE
AltLINE - Invoice factoring
NerdWallet Rating
4.4
Min Credit
300
with Fundera by NerdWallet
If you’re after fast cash without collateral, then consider invoice factoring
Sell your unpaid invoices to a factoring company like AltLINE
No minimum credit score, annual revenue or time in business requirements to meet. AltLINE and other factoring companies focus instead on the creditworthiness of your customers.
Forward Financing
Best for: Merchant cash advance from a vetted and trusted provider.
Forward Financing
Forward Financing - Merchant cash advance
Min Credit
500
with Fundera by NerdWallet
If you’ve exhausted other financing options, or you really feel a merchant cash advance is the right avenue for your business, then consider Forward Financing
You can qualify with the same minimum credit score you would for Bitty Advance: 500. You will need at least 12 months in business and at least $10,000 in monthly revenue, both double Bitty’s minimum requirements. But you can easily apply online, and you can reach the provider by phone and email.
Finally, Forward Financing is one of NerdWallet’s 30+ lending partners. That means you can trust this MCA company has been properly vetted.
» Still interested in an MCA? Check out our list of the best merchant advance companies