Have you been contacted by Bitty Advance regarding an outstanding debt? Here’s how to find out if this company is legitimate, how to handle communications with them, and how to resolve your debt in the best way possible.
Who is Bitty Advance?
Bitty Advance is a company that specializes in offering merchant cash advances and loans to small businesses. This type of fast funding is particularly suited for businesses that need quick access to capital. They may not qualify for traditional loans due to reasons such as credit issues or the need for rapid funding.
Is Bitty Advance Legitimate?
Bitty Advance is a legitimate company that provides MCAs to small businesses. It specializes in offering fast access to funding, often appealing to business owners who may not qualify for traditional bank loans.
However, given the nature of MCAs, which can come with high costs compared to traditional financing options, business owners should carefully evaluate whether this form of capital is the best fit.
Additionally, looking at the company’s reputation, customer feedback, and any regulatory actions or complaints can provide insights into its legitimacy and how it conducts business. It’s strongly recommended that you compare offers from multiple financial providers to ensure you’re getting the best deal for your business needs.
Overview of Bitty Advance
Bitty Advance provides funding amounts ranging from $2,000 to $250,000. An MCA from Bitty Advance is an agreement to exchange future business revenue for an upfront sum of cash.
The company is based in Florida and serves businesses across all 50 states. However, it’s important to note that Bitty Advance does not accept applications directly from businesses. Instead, it works through affiliates and brokers. This approach is somewhat different from direct lenders and requires businesses to go through a third party to apply for funding.
Bitty Advance Reviews and Complaints
Bitty Advance has a Better Business Bureau (BBB) rating of “F” and is not BBB accredited. The company has an average customer review rating of 1.2/5 stars (based on only five customer reviews). There have been nine complaints closed in the last three years, with three complaints closed in the last 12 months.
Dealing with Bitty Advance
What Should I Do If I Receive a Letter or Call from Bitty Advance?
First, ensure the letter or call is genuinely from Bitty Advance. Scammers can impersonate legitimate companies, so it’s crucial to confirm the authenticity by contacting Bitty Advance directly.
Next, understand why they contacted you. It could be for a range of reasons, such as offering a merchant cash advance, a collection notice, or an account update. Review the details provided carefully. If it’s a collection or account matter, address it promptly to avoid any negative impact on your business or credit.
If you’re unsure about how to proceed, especially with contract terms or if it involves debt collection, consider consulting with an MCA attorney to get professional advice on the best course of action.
Handling Communications from Bitty Advance
Always document your communications with Bitty Advance, including dates, the name of the person you spoke with, and the details of the conversation. This can be important for your records and any future disputes or misunderstandings.
Knowing Your Rights against Bitty Advance
MCAs operate in a regulatory gray area and are not subject to the same level of regulation as traditional loans. This is because MCAs are structured as commercial transactions, not loans, where businesses sell future receivables at a discount to the advance provider. So they don’t fall under the purview of traditional lending laws and consumer protection regulations.
When dealing with Bitty Advance (or any MCA provider), it’s important to understand your rights as a business owner to ensure fair treatment and to protect your interests. While specific rights can vary based on the laws of your state and the terms of your agreement with the MCA provider, here are general rights and considerations:
- Transparent terms: You have the right to a clear and understandable explanation of all terms and conditions of the advance, including the total amount of funding, the payback amount, the factor rate, any fees, and the retrieval rate.
- Fair practices: MCA providers should not engage in discriminatory practices against you.
- Legal recourse: If you believe Bitty Advance has violated the terms of your agreement or engaged in unfair practices, you have the right to seek legal recourse. This may include filing a complaint with your state’s attorney general, the Consumer Financial Protection Bureau (CFPB), or taking legal action through the courts.
The Legal Side of Bitty Advance
Common Legal Issues with Bitty Advance
Common legal issues with companies like Bitty Advance could include disputes over the terms of the cash advance, dissatisfaction with the repayment terms, or complaints regarding the collection practices.
Before agreeing to an MCA with Bitty Advance or similar MCA provider, it’s important to review the agreement carefully, including the repayment schedule, factor rate, and any other fees associated with the advance. When in doubt, seek legal advice from an experienced MCA attorney. And always maintain written documentation of all interactions and agreements.
What Happens If You Get Sued by Bitty Advance
If you get sued by Bitty Advance, it’s crucial to respond promptly and seek appropriate MCA legal counsel. Not responding to a lawsuit can result in a default judgment against you, which could lead to wage garnishment, asset seizure, or other serious consequences. An MCA lawyer can help you answer appropriately and potentially negotiate a settlement or payment plan to keep the matter out of court.
How to Negotiate with Bitty Advance
Negotiating with an MCA provider once your advance has moved to collections or even a lawsuit presents a challenging situation, but it’s not hopeless. Follow these general steps if you want to negotiate with Bitty Advance:
- Review your situation: Start by thoroughly reviewing the terms of your MCA agreement to understand your obligations and any potential penalties or collection processes outlined. At the same time, take a close look at your current financial situation. Knowing exactly what you can afford will be crucial in negotiations.
- Prepare your case: Collect all relevant documents, including any communication with Bitty Advance, payment histories, and any records of financial hardship that affected your ability to pay. Be clear on what you want to achieve. This could include a reduction in the total amount owed, a more manageable repayment plan, or a settlement offer.
- Start negotiations: Without making excuses, explain the circumstances that led to your financial difficulties. Provide evidence to support your claims if possible. Then, based on your assessment of your finances, propose a repayment plan or settlement that you can realistically uphold. Be honest about what you can afford and don’t sign anything without reading the terms or consulting a debt help attorney to go over the agreement for you.
- Request terms in writing: Once you reach an agreement, ask for the new repayment terms or settlement agreement in writing before making any payments.
- Consult a professional: When dealing with these types of negotiations, it’s advisable to consult a legal professional for guidance. Consider consulting with an experienced attorney who specializes in MCA matters and/or debt settlement and contract law. They can offer valuable advice, negotiate on your behalf, and ensure that your rights are protected throughout the process.
Bitty Advance phone number and address
You can contact Bitty Advance by calling (800) 324-3863. Representatives are available Monday through Friday from 9 am to 6 pm.
The mailing address for Bitty Advance is:
1855 Griffin Road, A-474
Dania, FL 33004
You can also get more information at Bittyadvance.com.
How Can a Debt Settlement Attorney Help?
A debt settlement attorney can help with an MCA from Bitty Advance by negotiating the terms of your debt to potentially reduce the amount owed. They can also help navigate the legal aspects of your contract, advise on legal rights and protections, and represent you in any disputes or negotiations with Bitty Advance.
Tayne Law Group offers a free phone consultation with one of our experienced debt relief attorneys. Whether you’re struggling to keep up with your bills, have debt collectors contacting you, have been sued by a creditor, UCC liens against your business or have a debt with Bitty Advance, there’s a good chance that we can help. Contact our offices by calling (866) 890-7337 or fill out our short contact form. We never share or sell your information and all conversations are confidential.
FAQs
To get approved for an MCA from Bitty Advance, you must meet the following qualifications:
Own a business checking account
Have been in business for at least six months
Earn at least $5,000 in monthly bank revenue
Have a credit score of 500+
A merchant cash advance provides businesses with a lump sum of capital upfront in exchange for a portion of their future credit card sales. The repayment is typically made by automatically deducting a percentage of the business’s daily credit card transactions until the advance, along with any fees and interest, is fully repaid.
