Alternative Funding Group Alternatives

While Alternative Funding Group says it has funded over $500 million in merchant cash advances and business loans since its inception, B2B companies are increasingly turning to modern alternatives that offer transparent pricing, non-recourse protection, and integrated accounts receivable automation. For businesses seeking to offer net terms while protecting cash flow, these alternatives provide superior solutions specifically designed for B2B commerce.

Key Takeaways

Non-recourse financing eliminates risk: Resolve provides non-recourse invoice advancement with zero merchant risk for approved customers, unlike Alternative Funding Group's recourse-based loans
Transparent per-invoice pricing: Resolve's fees start at 2.61% for net terms versus MCA factor rates can translate to very high effective APR once annualized, depending on term and repayment structure
Purpose-built for B2B: Resolve's platform is designed specifically for net terms and AR automation, not general working capital loans
Complete AR automation: Resolve reduces manual AR work by up to 90% with AI-powered collections, reconciliation, and payment reminders
Faster cash conversion: Convert 30-90 day receivables to 1-day cash while customers maintain their payment terms
Customer relationship preservation: White-label payment portal maintains your brand relationship while Resolve handles credit risk and collections

1. Resolve — The Modern Alternative to Merchant Cash Advances for B2B

Resolve emerges as the premier Alternative Funding Group alternative by completely reimagining B2B financing through its integrated net terms and accounts receivable platform. Spun out from Affirm in 2019 by former PayPal executives, Resolve brings consumer fintech innovation to B2B payments with a focus on risk elimination and operational efficiency.

Key Features:

100% non-recourse financing with zero merchant risk on approved invoices
AI-powered credit decisioning delivering instant to 24-hour approvals
Net 30, 60, or 90-day terms with flexible installment options
Up to 100% advance within 24-48 hours
Risk-based fees starting at 2.61% for 30-day net terms
Deep ERP integrations with QuickBooks, Sage Intacct, NetSuite, and major ecommerce platforms
White-label payment portal for seamless customer experience

Pricing Structure:

Transparent per-invoice fees ranging from 2.61% to 3.5% based on advance percentage and term length
No setup fees or monthly minimums (subscription applies)
70% cost savings compared to high-APR alternatives like Fundbox
Custom pricing for enterprise volumes

Resolve's AI-powered accounts receivable automation reduces manual work significantly, while its LLM-powered invoicing workflow automatically syncs transactions across systems. The platform serves thousands of B2B businesses across wholesale, manufacturing, distribution, and ecommerce sectors, with $60 million in Series A funding from Insight Partners.

Unlike Alternative Funding Group's merchant cash advance model that creates debt obligations and daily repayment pressure, Resolve's non-recourse model converts your existing receivables into immediate cash without balance sheet impact. Recent customer success stories demonstrate significant impact: businesses achieving 5x revenue growth, tripling revenue through Resolve, and unlocking working capital to increase profit margins.

The B2B payments landscape has evolved significantly, with businesses recognizing that merchant cash advances and traditional loans aren't optimized for invoice-based B2B sales. According to industry research, the global real-time payments market was valued at $24.91 billion in 2024, driving innovation in net terms financing that specifically addresses B2B needs.

2. Traditional Invoice Factoring — The Legacy Alternative

Traditional invoice factoring represents the legacy approach to accelerating cash flow, with the industry processing billions in receivables annually. This method involves selling unpaid invoices to a third-party factor at a discount, typically ranging from 1-5% per invoice.

Core Characteristics:

Recourse or non-recourse options (most are recourse)
Discount rates typically 1-5% per invoice
Notification or non-notification factoring models
Often requires minimum monthly volumes
May require reserve accounts (10-20% held back)
Setup fees and monthly maintenance charges common

Cost Structure:

1-5% discount rate per invoice
Setup fees: $500-2,000
Monthly fees: $200-1,000
Additional charges for credit checks, wire transfers, etc.
Concentration limits on individual customers

While factoring provides immediate cash for outstanding invoices, it often comes with complex contracts, hidden fees, and loss of customer relationship control. The notification model requires customers to pay the factor directly, potentially damaging your brand relationship. According to industry analysis, traditional factoring is being increasingly replaced by transparent, technology-driven solutions that maintain merchant control while eliminating risk.

For businesses specifically seeking non-recourse protection without the complexity of traditional factoring, Resolve's modern alternative offers a streamlined approach with transparent pricing and complete AR automation.

3. Fundbox — SMB Credit Lines for General Expenses

Fundbox occupies a distinct niche providing credit lines from $1,000 to $150,000 for small businesses that may not qualify for traditional financing. The platform has provided funding to small businesses with a focus on accessibility over B2B specialization.

Platform Features:

Instant credit decisions with next-day funding
Credit lines up to $150,000
12, 24, or 52-week repayment terms
QuickBooks integration for financial data
Mobile app for account management
No industry specialization

High-Cost Structure:

4.66-8.99% fees for 24 weeks, equivalent to 20-80% effective APR
$10,000 example costs up to $899 versus Resolve's $261
Late payment fees and potential NSF charges
Full recourse debt obligation

According to comparative analysis, while Fundbox provides accessible capital for small businesses, it's not designed for B2B net terms or customer credit management. The platform serves general working capital needs rather than invoice-specific financing, making it less suitable for businesses looking to offer competitive payment terms to their customers.

For B2B companies specifically seeking to offer net terms while protecting cash flow, Resolve's B2B-focused platform provides a more strategic solution with non-recourse protection and integrated AR automation.

4. Revenue-Based Financing — Growth Capital with Revenue Sharing

Revenue-based financing (RBF) provides growth capital to businesses in exchange for a percentage of future revenue until a predetermined amount is repaid. This model has gained popularity among SaaS companies and subscription-based businesses that generate predictable recurring revenue.

Model Characteristics:

Funding amounts typically $100K-$10M
Repayment as percentage of monthly revenue (3-10%)
No equity dilution or board seats required
Flexible repayment that scales with revenue
Often requires minimum revenue thresholds ($10K-$50K/month)
Focus on growth-stage companies with proven unit economics

Cost Considerations:

Total repayment multiples typically 1.3x-3.0x
Effective APR can range from 20-40% depending on revenue growth
No recourse protection for customer non-payment
Requires strong revenue predictability

While RBF provides flexible growth capital without equity dilution, it's not designed for managing day-to-day accounts receivable or offering net terms to customers. The model works best for businesses with predictable, recurring revenue streams rather than transaction-based B2B sales.

For companies specifically looking to accelerate cash flow from existing invoices while maintaining customer relationships, Resolve's non-recourse invoice advancement provides a more targeted solution without the revenue-sharing obligations of RBF.

5. Business Credit Cards — Short-Term Purchasing Power

Business credit cards provide immediate purchasing power for operational expenses, with credit limits typically ranging from $5,000 to $100,000+ based on business and personal credit profiles. These cards offer 0% introductory APR periods (typically 12-18 months) followed by standard APRs ranging from 15-25%.

Card Features:

Instant access to credit upon approval
Rewards programs (cash back, points, miles)
Employee cards with spending controls
Purchase protection and extended warranties
Integration with accounting software
Credit building for business profile

Limitations for B2B:

Personal guarantee typically required
Credit limits may be insufficient for large B2B transactions
No customer credit extension capability
Standard APRs apply after introductory period
No AR automation or collections management
Balance sheet debt that affects debt-to-income ratios

Business credit cards work well for managing operational expenses and building business credit, but they don't solve the core B2B challenge of offering competitive payment terms to customers while protecting cash flow. For businesses seeking to extend credit to customers without taking on recourse risk, Resolve's platform provides a more strategic solution.

6. SBA Loans — Government-Backed Traditional Financing

Small Business Administration (SBA) loans represent the traditional route to business financing, with government guarantees reducing lender risk and enabling more favorable terms. The SBA 7(a) loan program offers up to $5 million with terms up to 25 years for real estate or 10 years for working capital.

Program Features:

Loan amounts up to $5 million
Interest rates typically Prime
Terms up to 25 years for real estate, 10 years for working capital
Government guarantee reduces lender risk
Extensive documentation and approval process
Personal guarantees and collateral typically required

Process Limitations:

Approval process takes 30-90 days
Extensive documentation requirements
Strict eligibility criteria
Not designed for invoice-specific financing
No customer credit extension capability
Creates long-term debt obligation

SBA loans work well for major capital investments or business acquisitions, but they're not optimized for managing day-to-day cash flow challenges from outstanding receivables. The lengthy approval process and documentation requirements make them impractical for businesses needing immediate working capital to support growth.

For companies seeking to convert receivables to cash without creating long-term debt obligations, Resolve's invoice advancement provides a more agile solution with faster funding and non-recourse protection.

7. Peer-to-Peer Lending — Alternative Lending Marketplace

Peer-to-peer (P2P) lending platforms connect businesses directly with individual and institutional investors, bypassing traditional banking intermediaries. Platforms like LendingClub and Funding Circle offer loans ranging from $5,000 to $500,000 with terms from 1-5 years.

Platform Characteristics:

Loan amounts $5,000-$500,000
Terms 1-5 years
APRs typically 8%–36% based on credit profile
Faster approval than traditional banks (3-7 days)
Online application process
No industry specialization

Marketplace Limitations:

Still creates debt obligation on balance sheet
No non-recourse protection for customer non-payment
No AR automation or collections management
Not designed for B2B net terms or customer credit extension
Limited loan amounts for larger B2B transactions
Requires strong credit profile for best rates

P2P lending provides an alternative to traditional bank financing with faster approval processes, but it doesn't address the specific needs of B2B companies looking to offer competitive payment terms to customers. The model creates debt obligations without solving the core challenge of managing accounts receivable efficiently.

For businesses specifically seeking to offer net terms while getting paid immediately, Resolve's integrated platform provides a more targeted solution with non-recourse protection and complete AR automation.

Making the Right Choice for Your B2B Business

For B2B companies evaluating Alternative Funding Group alternatives, the choice depends on your specific business model, customer base, and operational needs:

By Business Model:

B2B sellers offering net terms: Resolve (non-recourse, AR automation, customer credit extension)
General working capital needs: Traditional loans or lines of credit
Emergency capital unrelated to invoices: Alternative Funding Group's MCA model
SaaS with recurring revenue: Revenue-based financing
Major capital investments: SBA loans or traditional bank financing

Cost Comparison for $10,000 Invoice:

Resolve: $261 (2.61% flat fee)
Fundbox alternative: Up to $899 (20-80% APR equivalent)
Traditional factoring: $100-500 (1-5% discount rate)
Alternative Funding Group: Not publicly disclosed; typical MCA range 20-80%+ APR

Implementation Timeline:

Same day: Resolve (with existing platform integrations)
1-2 days: Fundbox (credit line approval)
1-2 weeks: Traditional factoring (account setup)
30-90 days: SBA loans (documentation and approval)
Varies: Alternative Funding Group (same-day advertised for qualified applicants)

Key Implementation Considerations

When choosing between these financing alternatives, B2B businesses should evaluate several critical factors beyond just cost and timeline. First, consider how the financing solution integrates with your existing technology stack. Solutions like Resolve's ERP integrations can dramatically reduce manual data entry and reconciliation work, while standalone lending products may require significant administrative overhead.

Second, assess the impact on customer relationships. Traditional factoring often involves notification to your customers, which can affect how they perceive your financial stability. In contrast, white-label solutions allow you to maintain your brand presence throughout the payment process while still benefiting from credit protection and cash acceleration.

Third, evaluate scalability. As your business grows, your financing needs will evolve. Some solutions have concentration limits or volume caps that may constrain growth, while others scale seamlessly with your business. Understanding these limitations upfront can prevent costly transitions later.

The key differentiator for B2B businesses is whether the solution addresses the specific challenge of offering competitive payment terms to customers while protecting cash flow and eliminating bad debt risk. Only Resolve's integrated platform combines non-recourse protection, transparent per-invoice pricing, complete AR automation, and customer credit extension in a single solution designed specifically for B2B commerce.

Frequently Asked Questions

What are the main differences between Alternative Funding Group and Resolve?

Alternative Funding Group provides merchant cash advances and business loans with typical APRs ranging from 20-80%+, creating recourse debt obligations that require daily repayments. Resolve offers non-recourse invoice advancement specifically designed for B2B businesses, with transparent per-invoice fees starting at 2.61% and zero merchant risk on approved invoices. While Alternative Funding Group provides lump-sum capital for general working capital needs, Resolve converts specific invoices to immediate cash while customers maintain their payment terms.

How can net payment terms serve as an alternative funding solution for my business?

Net payment terms act as an alternative funding solution by increasing customers' buying power without requiring you to extend credit directly. When you offer net 30, 60, or 90-day terms through Resolve, your customers can purchase what they need now and pay later, while you receive up to 100% of the invoice value within 24-48 hours. This approach boosts sales volume and customer retention while protecting your cash flow and eliminating bad debt risk through Resolve's non-recourse model.

Is Resolve's invoice financing truly 'non-recourse' and what does that mean?

Yes, Resolve's invoice financing is 100% non-recourse, meaning you face zero risk if approved customers fail to pay. Resolve takes on the credit assessment, credit decision, and the majority risk of late payments or defaults. This eliminates bad debt concerns while allowing you to offer competitive net terms. All cash advances are non-recourse, so what you receive is always yours to keep, regardless of customer payment behavior.

How quickly can my business get paid using Resolve's alternative funding solutions?

Resolve provides advance payment within 24-48 hours of invoice approval, converting your 30-90 day receivables into immediate cash. Credit decisions are delivered instantly to 24 hours using AI-powered underwriting, and the platform can reduce your days sales outstanding (DSO) from 60 days to just 1 day. This rapid cash conversion enables you to fund operations, manage payroll, and support growth without waiting for customer payments.

What are the fees associated with Resolve's alternative funding services?

Resolve's fees are transparent and range from 2.61% to 3.5% for 30-day net terms, depending on the advance percentage and customer risk profile. For example, a $10,000 invoice with 30-day terms would cost $261-$350, compared to up to $899 with high-APR alternatives like Fundbox. There are no monthly minimums, setup fees, or hidden charges, and fees are calculated per invoice rather than as ongoing interest or factor rates.

This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.