While Defacto has raised funding from Citi Ventures for its embedded lending platform, businesses seeking working capital solutions are discovering alternatives that offer faster implementation, transparent pricing, and risk-free financing. From Resolve's non-recourse net terms to comprehensive financial planning platforms, these seven alternatives deliver the working capital capabilities modern B2B companies need.
The B2B financing landscape has evolved beyond traditional factoring and bank loans, with embedded lending and AI-powered platforms transforming how businesses access working capital. While Defacto focuses on European SMEs with its API-first approach, seven alternatives stand out for their comprehensive capabilities and proven track records.
Research shows that small and medium enterprises are expected to grow at the highest CAGR of 11.2% in the invoice factoring market, creating significant opportunities for innovative financing solutions.
Resolve leads the market as the premier Defacto alternative by completely eliminating merchant risk through its non-recourse financing model. Spun off from Affirm in 2019 by founders Chris Tsai and Brian Nguyen, Resolve brings consumer fintech innovation to B2B payments with backing from Initialized Capital and Commerce Ventures.
Key Features:
Transparent Pricing Structure:
The platform's AI-driven automation reduces DSO while accelerating cash flow, with businesses receiving payment within 24 hours while their customers get 30-60 days to pay. Resolve's proprietary underwriting models evaluate thousands of data points to generate dynamic, scalable credit decisions that traditional bureaus miss.
Unlike embedded lending platforms that require extensive API integration, Resolve offers turnkey solutions with pre-built integrations for major ecommerce and accounting platforms. The company currently serves thousands of businesses, helping companies like Lift Foils scale pre-season orders without taking on risk and enabling Archipelago to expand their operations.
QuickBooks Capital provides working capital loans directly within the QuickBooks ecosystem, making it an accessible alternative for businesses already using Intuit's accounting software. The platform leverages existing financial data to streamline underwriting and offer pre-approved financing options.
Platform Capabilities:
Pricing Model:
While convenient for QuickBooks users, the platform lacks the flexibility of net terms financing and requires business owners to take on debt rather than advancing against existing receivables. The global factoring market reaching $4,077.9 billion in 2024 demonstrates strong demand for alternatives to traditional loan products.
Fundbox has provided billions in funding to businesses since 2013, focusing on small businesses that traditional lenders overlook. The platform offers credit lines with rapid approval processes.
Core Features:
Cost Structure:
While Fundbox provides critical funding when banks won't help, the cost structure makes it important to compare with platforms like Resolve's net terms management that offer transparent, competitive financing.
Xero integrates with lending partners to offer access to working capital through its accounting platform marketplace. The platform connects businesses with various lenders based on their financial data and needs.
Key Offerings:
Fee Structure:
The integration with Xero's ecosystem provides convenience but lacks the flexibility of accounts receivable automation solutions that work across multiple platforms. According to the Visa Working Capital Index, 8 in 10 growth companies now use at least one working capital solution, with 27% using multiple options.
NetSuite offers comprehensive financial management as part of its cloud-based ERP system, providing an alternative for businesses seeking integrated financial planning beyond simple working capital access. Oracle's platform serves tens of thousands of organizations globally.
Platform Strengths:
Investment Requirements:
While powerful for enterprise operations, NetSuite's complexity and cost make it unsuitable for SMBs seeking simple working capital solutions. The platform's strength lies in comprehensive business management rather than specialized financing.
Sage Intacct provides cloud-based financial management software with robust reporting capabilities and industry-specific solutions. The platform serves thousands of organizations with AICPA-endorsed financial applications.
Core Capabilities:
Pricing Model:
Sage Intacct excels at financial management but doesn't directly provide working capital financing. Businesses can combine it with Resolve's B2B payments platform for comprehensive financial operations.
Wave offers free accounting software with optional paid services including payments processing and payroll, making it attractive for very small businesses and freelancers seeking basic financial management.
Free Features:
Paid Services:
While Wave provides free accounting tools, it lacks the working capital solutions and advanced features businesses need for growth. The absence of financing options means businesses must look elsewhere for funding needs.
The evolution beyond traditional factoring reflects fundamental market shifts driven by technology and changing business needs:
AI and Machine Learning Impact: Research demonstrates that machine learning and artificial intelligence create lucrative growth opportunities in the factoring services market, with these technologies providing innovation, efficiency, and enhanced security.
Embedded Finance Growth: The shift toward embedded lending is completely shifting user experience, with financing integrated directly into existing business workflows rather than requiring separate applications.
Market Expansion: Industry estimates suggest the global B2B BNPL market is experiencing significant growth in transaction volume, with B2B transactions averaging significantly higher values than B2C, demonstrating strong demand for flexible payment solutions.
When evaluating Defacto alternatives, consider these critical factors:
By Business Size:
By Primary Need:
Implementation Timeline (typical ranges based on vendor reports):
The domestic factoring market dominates with over 65% market share, indicating most businesses prioritize local solutions over international capabilities when choosing financing partners.
Focus on integration capabilities with your existing tech stack, particularly accounting software like QuickBooks or NetSuite. Evaluate whether you need non-recourse financing to eliminate risk, or if recourse options with potentially lower fees work for your business. Consider approval speed—modern platforms like Resolve deliver instant credit decisions using AI, while traditional lenders may take days or weeks. Review fee structures carefully, as factor rates range from 0.8% to 8.25% per 30-day period depending on various factors. Finally, assess whether you need pure working capital access or comprehensive financial management capabilities.
Modern B2B payment platforms like Resolve's AI-powered solution go beyond basic accounting by providing integrated financing, automated credit decisions, and risk management. While traditional accounting software tracks financial data, payment platforms actively improve cash flow by advancing funds against invoices and automating collections. The working capital management market's growth to $7.56 billion by 2031 reflects businesses recognizing the value of integrated financial operations over separate accounting and financing systems.
Yes, modern platforms are designed for integration. Resolve's flexible API connects with QuickBooks, NetSuite, Sage Intacct, and major ecommerce platforms without creating conflicts. The key is choosing tools with robust APIs and established integration partnerships. Many businesses successfully combine accounting software for bookkeeping, payment platforms for cash flow management, and specialized tools for industry-specific needs.
Most businesses see immediate cash flow improvements when implementing solutions like Resolve's net terms management, with funds available within 24 hours of invoice approval. The broader ROI depends on your current inefficiencies—companies manually managing AR typically save 50% of processing time within the first month. According to the Visa Working Capital Index, use of working capital solutions rose 13%, with businesses reporting improved operational efficiency and growth capacity.
Free tools like Wave work for basic bookkeeping but lack the working capital access and automation growing businesses need. As transaction volumes increase, the limitations become apparent—no financing options, minimal automation, and limited reporting capabilities. The investment in comprehensive platforms like Resolve's B2B payments solution typically pays for itself through improved cash flow and reduced administrative costs, especially for businesses processing over $50,000 monthly.
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.