What is Bitty Advance? MCA Lender Review & Options

Small businesses that need fast cash often turn to merchant cash advances. Bitty Advance is one such provider offering same-day funding without traditional credit checks.

But many business owners end up facing sky-high fees, frozen bank accounts, and aggressive collection tactics. Understanding how Bitty Advance works can help you avoid these pitfalls.

Facing a Bitty Advance Lawsuit? Respond in Minutes

Don't let confession of judgment clauses freeze your accounts. Our partner Solo helps you file a proper Answer, challenge their evidence, and negotiate settlements before trial. Attorney-reviewed responses filed directly with the court.

Answer the Lawsuit

If you’re already in default or facing a lawsuit from Bitty Advance, you have options. Our partner Solo can help you respond to debt collectors and settle for less.

Understanding Bitty Advance and Merchant Cash Advances

Bitty Advance operates as a legitimate merchant cash advance provider since 2018. The company serves small and mid-size businesses across all 50 states from its Florida headquarters.

The physical address is 1855 Griffin Road, A-474, Dania, FL 33004. The company also operates under the name Bitty Advance 2, LLC.

How Merchant Cash Advances Work

Bitty Advance doesn’t offer traditional loans. Instead, they provide Merchant Cash Advances (MCAs).

Here’s how it works: The company buys your future business revenue. You receive cash now and repay directly from future income.

Repayment happens through fixed amounts or percentage-based deductions from daily or weekly sales. You can borrow between $2,000 and $25,000, with limits up to $35,000 in certain cases.

Bitty Advance’s BBB Rating and Reputation

The Better Business Bureau opened a file for Bitty Advance on November 9, 2021. The company is not BBB accredited.

Consumers have filed numerous complaints against the company. Bitty Advance has closed only four complaints in the past 12 months.

The BBB gives Bitty Advance an F rating. That’s the worst possible rating available.

Qualification Requirements for Bitty Advance Funding

Most industries can apply for Bitty Advance funding. Your business must meet these specific criteria:

Active business checking account
Operating for at least six months
Minimum monthly revenue of $5,000 for the past three months
FICO score of at least 450

Advantages of Bitty Advance MCAs

Business owners appreciate certain features of Bitty Advance funding:

No hard credit inquiries that damage your score
No collateral requirements
No traditional interest rates
Same-day funding available
Early repayment discounts offered

Significant Drawbacks to Consider

The disadvantages often outweigh the benefits for many businesses:

Extremely high effective rates, often reaching double or triple digits
No positive credit reporting for on-time payments
Defaults immediately reported to credit bureaus
Cannot simply pay off the advance early without penalties
You’ve contractually agreed to give away future earnings

The cost of merchant cash advances makes them one of the most expensive business funding options available.

What Happens When You Default on Bitty Advance

Defaulting on a Bitty Advance MCA triggers serious consequences. The company can take aggressive collection actions against your business and personal assets.

Confession of Judgment Clauses

Bitty Advance contracts typically include confession of judgment clauses. These provisions allow the company to obtain a default judgment without notice or court hearings.

Once Bitty Advance secures this judgment, they gain powerful collection tools. The company can freeze your business and personal bank accounts immediately.

UCC Liens and Personal Guarantees

Bitty Advance can place UCC liens on your business property and receivables. These liens give them priority claim over your business assets.

The company can also enforce personal guarantee clauses. Your personal bank accounts and assets become vulnerable to collection efforts.

Third-Party Debt Collectors

Bitty Advance often outsources defaulted accounts to debt collection agencies. These collectors may file lawsuits to recover the full amount plus fees.

If you receive collection letters or a lawsuit summons, you need to respond quickly. Our partner Solo helps you fight back against aggressive debt collectors.

Your Options After Defaulting on Bitty Advance

You’re not powerless if you’ve defaulted on a Bitty Advance MCA. Several strategies can help you resolve the debt and protect your business.

Vacate the Default Judgment

Courts sometimes allow you to vacate default judgments. You’ll likely need an attorney to file the appropriate motions.

Valid reasons include improper service, lack of notice, or procedural errors. Success depends on your specific circumstances and state laws.

Negotiate a Settlement

Many businesses successfully settle MCA debts for less than the full amount. Debt collectors often accept reduced payments to close accounts.

You can negotiate directly or use settlement services. Our partner Solo specializes in settling debts with collectors for significantly less.

Consider Business Bankruptcy

Business bankruptcy can discharge Bitty Advance debt along with other obligations. Chapter 7 liquidation or Chapter 11 reorganization may be appropriate.

Consult with a bankruptcy attorney to understand your options. The right strategy depends on your business structure and total debt load.

How to Respond to a Bitty Advance Lawsuit

Receiving a lawsuit summons from Bitty Advance or their debt collector requires immediate action. Ignoring the lawsuit guarantees a default judgment against you.

File Your Answer Document

You must respond to the lawsuit within your state’s deadline. Most states give you 20-30 days from the date you were served.

Your Answer document addresses each claim in the complaint. You can raise defenses like statute of limitations or lack of standing.

Our partner Solo walks you through creating a legally valid Answer step-by-step. Their service includes attorney review and court filing.

Challenge the Collector’s Evidence

Debt collectors must prove they own your debt and the amount is correct. Many cases fall apart when collectors can’t provide proper documentation.

Request validation of the debt in writing. Ask for the original MCA agreement and a complete accounting of charges.

Negotiate Before Trial

Most debt lawsuits settle before reaching trial. Collectors prefer guaranteed payment over uncertain court outcomes.

You can often settle for 40-60% of the claimed amount. Payment plans are usually available for lump sum settlements.

Avoiding Merchant Cash Advance Problems

Prevention is always better than dealing with collection lawsuits. Understanding MCA terms before signing protects your business.

Calculate the True Cost

MCAs don’t use traditional interest rates. But the effective APR often exceeds 50-100% annually.

Factor fees convert to interest rates when you calculate total repayment. Always determine the factor rate and total payback amount.

Read the Fine Print Carefully

Confession of judgment clauses appear in most MCA agreements. Personal guarantee provisions put your personal assets at risk.

UCC lien filings give the lender claim to your receivables. Understand every provision before signing any agreement.

Explore Alternative Funding Options

Traditional bank loans offer much lower rates for qualified businesses. SBA loans provide government-backed funding with favorable terms.

Business lines of credit give you flexibility without selling future revenue. Even business credit cards typically cost less than MCAs.

Frequently Asked Questions

What is Bitty Advance and how does it work?

Bitty Advance is a merchant cash advance provider that purchases your future business revenue. They provide between $2,000 and $25,000 in same-day funding, and you repay through fixed amounts or percentage deductions from your daily or weekly sales. Unlike traditional loans, MCAs don't charge interest rates but use factor rates that often result in extremely high effective APRs.

How do I qualify for a Bitty Advance merchant cash advance?

You need a business checking account, at least six months in operation, minimum monthly revenue of $5,000 for the past three months, and a FICO score of at least 450. Bitty Advance doesn't require collateral and performs soft credit checks rather than hard inquiries that damage your credit score.

What happens if I default on my Bitty Advance MCA?

Defaulting triggers confession of judgment clauses that allow Bitty Advance to obtain judgments without notice or hearings. They can freeze your business and personal bank accounts, place UCC liens on your assets and receivables, enforce personal guarantees, and outsource the debt to aggressive third-party collectors who may file lawsuits.

Can I settle a Bitty Advance debt for less than I owe?

Yes, many businesses successfully negotiate settlements for 40-60% of the claimed amount. You can negotiate directly with Bitty Advance or their debt collector, or use settlement services that handle negotiations on your behalf. Payment plans are often available even for reduced settlement amounts.

How do I respond to a lawsuit from Bitty Advance?

You must file an Answer document with the court within your state's deadline, typically 20-30 days from service. Your Answer should address each claim in the complaint and raise any applicable defenses like statute of limitations or lack of proper documentation. Using a service that provides attorney review and court filing increases your chances of success.

What is Bitty Advance? MCA Lender Review and Default Options