Funding Circle Alternatives: Modern Solutions for B2B Growth

While Funding Circle has funded over 110,000 UK businesses with over £16 billion in loans since 2010, modern B2B companies are discovering superior alternatives that eliminate merchant risk, accelerate cash flow, and automate accounts receivable. From Resolve's non-recourse financing to AI-powered underwriting, these platforms deliver the working capital solutions businesses need without the limitations of traditional term loans or recourse-based financing.

Key Takeaways

• Non-recourse financing eliminates risk: Resolve provides non-recourse financing with zero merchant risk—what you get is always yours to keep, even if customers default
• Get paid in 24 hours instead of 90: Resolve advances up to 100% on approved invoices within one day while customers get 30-90 days to pay
• AI automation transforms AR efficiency: Resolve's platform significantly reduces manual AR work and shrinks DSO to 1 day through automated invoicing, collections, and reconciliation
• Instant credit decisions accelerate sales: AI-powered underwriting delivers credit decisions in seconds vs. Funding Circle's 1-hour minimum or traditional lenders' multi-day processes
• Embedded payments enhance customer experience: White-label payment portals maintain brand consistency while supporting ACH, credit card, wire, and check payments
• Deep ERP integration eliminates errors: Bi-directional sync with QuickBooks, NetSuite, and Oracle reduces reconciliation errors by approximately 50%

1. Resolve — The Only Non-Recourse B2B Payment Solution

Resolve stands out as the premier Funding Circle alternative by completely eliminating merchant risk through its 100% non-recourse financing model. Founded in 2019 as a spinout from Affirm by veterans of Amazon and PayPal, Resolve brings consumer fintech innovation to B2B payments with a mission to streamline net terms, accounts receivable, and payment processes.

Key Features:

• 100% non-recourse financing with zero merchant risk
• Instant AI credit decisions requiring only business name and address
• Net 30, 60, 90-day terms for buyers
• Up to 100% advance within 24 hours on approved invoices
• Risk-based fees ranging from ≈ 2.6 % to 3.5 % for 30-day net terms, depending on advance rate and customer risk profile
• Deep ERP integrations with QuickBooks, NetSuite, Oracle, Xero
• White-label payment portal for all payment methods

Pricing Structure:

Resolve's pricing model reflects the comprehensive value of its platform. Fees vary by advance percentage and risk profile, typically ranging from 2.61% for standard risk customers to around 3.5% for 100% advances. There are no monthly minimums, setup fees, or hidden charges. The software subscription runs from $99-$499 monthly based on features and volume, with custom enterprise pricing available for larger organizations.

The platform's AI-powered AR automation significantly reduces manual work while its LLM-powered invoicing workflow automatically syncs transactions across systems. Resolve's platform delivers significant impact: businesses achieve average 20% YoY sales growth, approximately 40% higher average order values, and save over 14 hours weekly on AR management.

Unlike traditional recourse financing that requires personal guarantees and business liens, Resolve takes on the credit assessment, credit decision, and majority risk of late payments or defaults. The platform currently serves over 15,000 businesses with backing from strategic investors.

Why Net Terms Matter for B2B Growth

According to Federal Reserve research, B2B payment terms significantly impact small business cash flow and growth potential. Offering net terms has become essential for competitive B2B sales, but traditional approaches create substantial working capital challenges. Businesses that extend 30-90 day payment terms typically wait months to collect payment, creating cash flow gaps that limit growth opportunities.

Resolve's embedded payment solution integrates directly into sales flows, allowing B2B sellers to offer flexible payment terms at checkout while maintaining complete control over customer relationships. This approach aligns with Resolve's guiding vision: "Embedded payments are the future of B2B commerce," combining previously disparate resources—credit expertise, invoice financing, and payments—into a single platform.

The shift toward embedded B2B payments reflects broader trends in business financing. Small businesses increasingly seek solutions that integrate directly into their existing workflows rather than requiring separate loan applications and manual processes. This integration reduces friction, accelerates sales cycles, and improves customer satisfaction.

2. Iwoca — Flexible UK SME Financing

Iwoca represents a strong UK-based alternative to Funding Circle with higher borrowing limits and flexible repayment structures. Founded in 2012, the company demonstrated an 82% increase in loan volume in H1 2024 and serves established UK SMEs needing substantial working capital.

Platform Strengths:

• Higher borrowing limits up to £1,000,000
• Flexible repayment terms that adjust to business cash flow
• Same-day approval decisions for qualified applicants
• Established UK market presence since 2012

Cost Considerations:

Typical representative APR around 18 % (≈ 1.5 % monthly equivalent), with a 3% arrangement fee for terms longer than 12 months. The platform requires personal guarantees for amounts up to £350,000 and operates on a recourse lending model, meaning business owners retain responsibility for repayment regardless of business outcomes.

Iwoca works well for UK businesses with strong cash flow that can handle higher interest costs in exchange for flexible repayment terms and larger loan amounts.

3. BlueVine — Integrated US Banking and Lending

BlueVine offers a compelling US-focused alternative with integrated high-yield banking and lending services. Founded in 2013, the platform serves businesses needing revolving credit lines and integrated financial management.

Core Capabilities:

• High-yield checking account offering 2.0 % APY on balances up to $250 K (as of Dec 2025)
• Line of credit up to $500,000
• Lower credit requirements (625 minimum score)
• QuickBooks and Xero integration

Pricing Structure:

Starting around 7.8% APR for qualified borrowers, BlueVine charges no origination or prepayment fees. Repayment terms extend up to 24 months, though the recourse lending model requires personal guarantees.

BlueVine's integrated banking approach provides convenience for US businesses wanting both lending and banking services in one platform. However, the recourse model and focus on traditional lines of credit rather than invoice-specific financing make it less suitable for B2B sellers needing to offer net terms while maintaining healthy cash flow.

4. Lendio — Marketplace Access to Multiple Lenders

Lendio operates as a lending marketplace connecting businesses to 75+ lenders for competitive financing options. Founded in 2011, the platform has facilitated over 400,000 loans and serves businesses with varying credit profiles.

Marketplace Advantages:

• Access to 75+ lenders for competitive rates
• Higher borrowing limits up to $2,000,000
• Lower credit score acceptance (600+ scores)
• Strong customer satisfaction with 4.7/5 Trustpilot rating

Limitations:

The marketplace model means funding processes typically take longer than direct lenders, with timelines spanning several days rather than same-day or next-day funding. Pricing varies based on lender selection, and the recourse lending model requires personal guarantees. Additionally, businesses have limited control over post-funding customer support since they're working with third-party lenders.

Lendio's marketplace model provides options for businesses that don't qualify for traditional bank financing, though the extended timelines and recourse requirements differ significantly from Resolve's approach.

5. OnDeck — Fast US Term Loans

OnDeck offers traditional term loans with next-day funding for US businesses needing working capital. Founded in 2006, the platform has funded over $13 billion to businesses across various industries, focusing on speed and simplicity.

Platform Features:

• Next-day funding for approved applicants
• Term lengths from 3-36 months
• Loan amounts up to $250,000
• No prepayment penalties

Cost Structure:

While OnDeck doesn't publicly disclose specific APR rates, industry standards suggest rates typically exceed traditional bank financing. The platform operates on a recourse lending model requiring personal guarantees, with shorter loan terms than traditional bank financing and limited integration capabilities with business software systems.

OnDeck provides faster access to traditional term loans but lacks the invoice-specific financing, non-recourse protection, and AR automation that Resolve offers for B2B sellers.

6. LendingCrowd — UK Peer-to-Peer Lending

LendingCrowd operates as a UK peer-to-peer lending platform connecting businesses with individual investors. Founded in 2014, the company provides an alternative funding source outside traditional banking channels for UK SMEs.

P2P Model Benefits:

• Alternative funding source outside traditional banking
• Competitive rates through investor competition
• Established UK presence since 2014
• Focus on SME business lending

Model Limitations:

The platform operates on a recourse lending model with personal guarantees required, limiting service to the UK market only. The marketplace model creates variable terms depending on investor interest, and the platform doesn't offer invoice financing or AR automation capabilities.

LendingCrowd provides another UK financing option but doesn't address the specific needs of B2B sellers offering net terms to customers.

Understanding B2B Financing Evolution

The B2B financing landscape has evolved significantly in recent years, driven by technological innovation and changing business needs. According to the CFO Selections, effective cash flow management is critical for small business success, yet traditional financing options often create additional complexity rather than solutions.

Traditional term loans and lines of credit served businesses well for decades, but they weren't designed for the specific challenges of B2B commerce. When businesses extend payment terms to customers, they create an accounts receivable asset that traditional lenders don't efficiently monetize. This gap has led to the rise of specialized solutions like invoice financing and factoring.

However, even traditional invoice factoring comes with limitations—namely recourse provisions that transfer risk back to the seller if customers don't pay. This is where modern platforms like Resolve differentiate themselves through non-recourse models that truly eliminate seller risk.

Total Cost of Ownership Comparison

For businesses evaluating alternatives, the total cost of ownership reveals significant differences beyond simple interest rates:

Resolve Pay ($100K Invoice Financing):

• Transaction fee: approximately $3,500 (around 3.5% for 100% advance)
• Software subscription: approximately $3,588 annually
• Total Year 1 Cost: around $7,088
• Effective Rate: approximately 7.09%

Funding Circle (£80K Term Loan - 5 years):

• Completion fee: approximately $5,000 (around 5%)
• Interest: approximately $18,500 (6.9% APR over 5 years)
• Total Cost Over 5 Years: around $23,500
• Annual Equivalent: approximately $4,700

While Funding Circle shows lower annual costs, it requires a 5-year commitment and operates on a recourse lending model where business owners remain liable for repayment. Resolve's effective rate includes comprehensive AR automation, non-recourse protection, and immediate payment—delivering significant ROI through approximately 40% higher average order values and average 20% YoY sales growth.

The comparison becomes even more favorable when considering opportunity costs. Businesses using Resolve can accept larger orders from customers with longer payment terms, driving higher total revenue. Traditional lenders don't enable this sales expansion since they provide general working capital rather than invoice-specific financing integrated into the sales process.

When to Choose Resolve vs. Traditional Lenders

Choose Resolve when your business:

1. Sells to other businesses on credit terms and needs immediate payment (within 24 hours) instead of waiting 30-90 days
2. Wants to eliminate bad debt risk through non-recourse financing
3. Seeks to automate the entire AR process with AI-powered automation
4. Desires to integrate payments directly into sales flow with embedded checkout
5. Needs to offer competitive net terms to win larger B2B customers
6. Wants to scale revenue without proportionally increasing AR headcount

Choose traditional lenders when you need:

1. Large lump-sum capital for equipment purchases or facility expansion
2. Lower interest rates available to highly creditworthy businesses (approximately 6.9%+ APR)
3. Traditional loan structure with predictable fixed monthly payments
4. Long-term repayment schedules spanning 5+ years
5. General working capital not tied to specific customer invoices

The decision ultimately depends on your business model and growth strategy. B2B sellers benefit most from Resolve's integrated approach, while businesses making capital investments may prefer traditional term loans.

Frequently Asked Questions

What are the main disadvantages of traditional business loans like those from Funding Circle?

Traditional business loans require personal guarantees and business liens, transferring all credit risk to the business owner. They also typically charge completion fees ranging from 3-8% on top of interest rates, and maintain strict eligibility requirements including 2+ years in business and credit scores above 660. Most importantly, they don't address the specific needs of B2B sellers who need to offer net terms to customers while protecting cash flow.

How can a startup with no revenue secure necessary funding?

Startups with no revenue face significant challenges with traditional lenders that require established business history and cash flow. Resolve offers an alternative through its AI-powered credit underwriting that evaluates thousands of data points beyond traditional credit scores. For B2B startups selling to established businesses, Resolve can approve credit lines based on buyer creditworthiness rather than seller history. This allows startups to offer net terms to their customers while getting paid immediately, effectively using their customers' credit to fund growth.

What makes 'easy approval' startup loans different from standard business loans?

Easy approval startup loans typically use alternative data sources and faster underwriting processes, but most still require personal guarantees and transfer risk to business owners. Resolve's approach is fundamentally different—instead of evaluating the seller's credit, it evaluates the buyer's creditworthiness and provides non-recourse financing where the seller faces zero risk. This means approval is based on who you sell to, not your own credit history, making it uniquely accessible for startups with established B2B customers.

How does Resolve's approach to net terms provide an alternative to traditional business financing?

Resolve transforms traditional financing by focusing on invoice monetization rather than term loans. Instead of borrowing against future revenue, businesses get paid immediately on approved invoices while customers receive 30-90 days to pay. This eliminates the need for traditional working capital loans while providing superior benefits: non-recourse protection, AI-powered AR automation, and embedded payment solutions that drive significant sales growth.

How does Resolve help businesses get paid faster using AI-powered automation?

Resolve's AI-powered AR automation reduces DSO to as little as 1 day through several mechanisms: AI agents automatically send payment reminders, monitor payment status in real-time, and escalate collections as needed. The platform's LLM-powered reconciliation automatically matches payments to invoices across any structure—net terms, COD, or due upon receipt—with approximately 50% fewer errors. This automation saves over 14 hours weekly while ensuring businesses receive up to 100% advance payment within 24 hours of invoice approval.

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.