Start My Answer

What is Bitty Advance?

Dena Standley | May 12, 2023

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Bitty Advance provides emergency funding to small and medium-sized businesses. Business owners can receive up to $25,000 on the same day of application. These are not traditional loans but Merchant Cash Advances (MCA). Bitty Advance "buys" your future revenue. So businesses pay back a percentage of their proceeds from the following months.

Small businesses that do not want hard credit checks or do not have excellent scores may prefer merchant cash advances. These lenders offer expensive funding but are fast and have a straightforward application process.

Bitty Advance has successfully set itself up as a cash advance provider since 2018. While many business owners are still new to this type of lending, some are already in trouble. They face unprecedentedly high fees, UCC liens, and bank account freezes.

This article discusses what you need to know about Bitty Advance, qualifications for funding, and possible repercussions if you default. We will also briefly discuss how to get out of debt.

Who is Bitty Advance?

Bitty Advance is a legitimate lender serving small and mid-size businesses across all 50 states. Its headquarters is in Florida. The company's alternate name is Bitty Advance 2, LLC, and its physical address is 1855 Griffin Road, A-474, Dania, FL 33004.

Rather than offer traditional personal loans, Bitty Advance provides advances targeting LLCs and corporations needing quick cash. This type of funding is known as Merchant Cash Advances (MCA).

MCAs are unique in that the lender buys the borrower's future revenue. Simply put, Bitty Advance gives you (the business owner) money now, and you agree to pay it directly from future income. Repayments can be fixed amounts or a percentage of how much the business makes.

You can borrow between $2,000 and $25,000 from Bitty Advance. But the limit can go up to $35,000 under certain circumstances.

Bitty Advance started operating in 2018. The Better Business Bureau BBB opened a file for it on 11/9/2021, but it is yet to be accredited. Since then, consumers have been submitting complaints on Bitty Advance's profile. So far, it has closed only four complaints in the past 12 months.

The BBB gives it an F rating, the worst possible.

What are the qualifications for Bitty Advance's funding?

Businesses in most industries are welcome to apply for funding through Bitty Advance, but they must meet the following qualifications:

  • Have a business checking account
  • Must have been in business for over six months
  • Must be making at least $5,000 a month in the past three months
  • Have a FICO score of at least 450

Some advantages of Bitty Advance "loans" are:

  • The company does not conduct hard inquiries on your credit
  • No collaterals are necessary
  • There are no interest rates
  • It is a reliable way to access same-day funding
  • Early repayment can earn you discounts

Businesses also need to consider the following cons of working with Bitty Advance.

  • High rates. MCAs are some of the most expensive business funding options. Borrowers typically pay back double figures in interest. These can go up to triple digits, depending on the rates and how much your business makes during the repayment period.
  • Bitty Advance does not report timely payments to your credit, denying you precious positive history. However, if you default, the account goes straight to your file.
  • Merchant cash advances are not loans. So you cannot just back out and pay it off. By signing the contract, you agree to give away your business's earnings.

Defaulting can result in other serious consequences. Let’s explore them.

The repercussions of defaulting a Bitty Advance Loan

Aside from reporting to the credit bureaus and dropping your score, defaulting can lead to Bitty Advance invoking the judgment by confession agreement. A confession judgment clause allows Bitty Advance to obtain a default judgment without notice or court hearings.

If Bitty Advance gets the judgment, it can freeze your bank accounts or place UCC liens on a property or the business's receivables.

MCA providers can also enforce your personal guarantee. If that happens, you could lose money in your personal bank accounts.

Defaulting can also lead to Bitty Advance outsourcing the debt to a third-party debt collector.

Handling debt collectors while fighting to keep your business afloat is not the outcome business owners anticipate. But if it happens, use SoloSuit to relieve some of that stress.

For example, our Answer document can help you win your debt collection lawsuit. Check out the following video to learn how to respond to a debt lawsuit against Bitty Advance:

What can you do if you default?

A few options exist for businesses that default on Bitty Advance's loan.

  • Find a way to vacate the default judgment. You may need to hire a lawyer, but it is worth trying.
  • Settle the debt for less using SoloSettle.
  • File for bankruptcy and include the Bitty Advance debt so that it gets discharged.

If you are new to Merchant Cash Advances, you may need time to understand how they work before you get yourself and your business into a financial crisis. Although quick funding may be tempting, the high costs may not be worth it eventually.

If you are already in collections, use SoloSuit to communicate with the debt collector and prevent a lawsuit or respond to the suit before going to court—and win.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

We have answers

Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.

Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.

Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.

Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather

Get Started