B2B sellers extending net payment terms face a critical decision: rely on traditional invoicing software to manage receivables, turn to invoice factoring for immediate cash, or adopt an integrated platform that combines financing with accounts receivable automation. While invoiced payment systems help track what customers owe and factoring companies advance cash against outstanding invoices, Resolve Pay's B2B payments platform delivers a fundamentally different approach. By combining non-recourse financing, AI-powered credit decisioning, and complete AR automation in one solution, Resolve Pay eliminates the tradeoffs that force businesses to choose between cash flow and operational efficiency.
When a business sells products or services on credit, it generates an invoice documenting the transaction and establishing payment terms. Being "invoiced" means the buyer receives formal documentation of their obligation to pay within a specified timeframe, typically Net 30, Net 60, or Net 90 days. This fundamental B2B transaction creates an accounts receivable entry for the seller and an accounts payable entry for the buyer.
Invoicing software helps sellers create, send, and track these payment documents. Basic systems handle invoice generation and payment recording, while more sophisticated platforms offer automated reminders, multiple payment acceptance methods, and integration with accounting systems. The invoice itself serves as both a legal document establishing the debt and a communication tool providing buyers with payment instructions.
For sellers, the challenge lies in the gap between completing a sale and receiving payment. While the invoice establishes the buyer's obligation, cash doesn't arrive until the payment terms expire and the customer actually pays. During this waiting period, the seller has working capital tied up in receivables that could otherwise fund operations, inventory purchases, or growth initiatives.
Effective invoicing requires several integrated capabilities:
Standalone invoicing software handles these functions but leaves the fundamental cash flow problem unaddressed. Sellers still wait for payment, still bear the risk of customer default, and still must manually chase overdue accounts.
Resolve Pay's accounts receivable platform includes these invoicing capabilities while adding the financing and risk protection that standalone software cannot provide. Automated invoice generation syncs with ERP systems, smart payment reconciliation uses ML to match payments automatically, and the real-time AR dashboard provides complete visibility into receivables health.
Invoice factoring represents one of the oldest forms of business financing, dating back centuries to merchants who sold their trade receivables to obtain immediate cash. In a factoring arrangement, the seller transfers ownership of invoices to a third-party factor in exchange for an advance on the invoice value. The factor then collects payment directly from the buyer in disclosed factoring arrangements.
The factoring process typically works as follows:
In disclosed factoring arrangements, buyers are notified of the receivables assignment and typically make payments directly to the factoring company. Customer notification and collection arrangements depend on the factoring agreement.
A critical distinction in factoring arrangements is whether the deal includes recourse:
Recourse factoring means the seller may remain responsible for unpaid invoices if the buyer fails to pay. If the customer defaults, the seller may need to buy back the invoice or replace it with a different one. The seller bears the ultimate risk of bad debt under this structure.
Non-recourse factoring transfers specified buyer credit-default risk to the factoring company, subject to the agreement's conditions and exclusions. Coverage varies by provider, so sellers should review which events qualify as covered defaults.
Factoring arrangements vary by provider, including how advances, reserves, customer notification, and collections are structured. Common features include:
While often used interchangeably, invoice factoring and invoice financing represent distinct financial products with different implications for business operations and customer relationships.
Invoice factoring involves the outright sale of receivables. The factor purchases the invoices and takes ownership. This transfer of ownership means:
Invoice financing (also called accounts receivable financing) uses invoices as collateral for a loan rather than selling them outright. Under this structure:
The factoring model's requirement in disclosed arrangements creates a different dynamic in business relationships. Buyers learn that their vendor is working with a factoring company, and the factor's collection practices may differ from the seller's approach.
Invoice financing preserves more customer relationship control since the seller typically continues managing collections. However, the seller must still handle all collection activities internally, requiring staff time and consistent follow-up processes.
Resolve Pay's approach maintains the seller's customer relationships through a white-labeled experience. Buyers interact with the seller's brand throughout the payment process, seeing the seller's name on communications and accessing a branded payment portal. This preserves the business relationship while providing the seller with financing and collections support behind the scenes.
Cash flow challenges extend beyond simply needing money faster. B2B sellers must balance multiple competing priorities: extending competitive payment terms to win business, maintaining healthy working capital for operations, managing credit risk across their customer portfolio, and keeping AR operations efficient as transaction volume grows.
Effective cash flow management requires addressing several interconnected challenges:
Traditional factoring addresses working capital availability but does nothing for operational efficiency. Standalone invoicing software improves operational efficiency but provides no cash flow acceleration or risk protection.
Building sustainable cash flow requires integrated solutions rather than point tools addressing single problems:
Resolve Pay's net terms financing combines these elements in a single platform. Sellers offer Net 30, 60, or 90 terms to their customers while receiving payment within 1-2 business days. The non-recourse structure provides protection against covered buyer credit defaults on eligible approved invoices. And the integrated AR automation eliminates the manual work that standalone invoicing software still requires.
Manual AR processes drain resources and introduce inconsistency. Staff spend hours generating invoices, sending reminders, tracking payments, and reconciling accounts. Human follow-up on overdue invoices happens when people have time, not on optimized schedules. The result is higher DSO and operational costs that scale with transaction volume.
Effective AR automation addresses each stage of the order-to-cash cycle. Both standalone invoicing software and integrated platforms like Resolve Pay offer automation capabilities, though the scope differs significantly:
Trenchless Supply, a Resolve Pay customer, reduced their AR workload by 90% after implementing the platform. Credit approvals that previously took days now complete in under 24 hours, and automated workflows handle follow-up that previously required dedicated staff time.
Beyond basic automation, AI-powered collections adapt approaches based on customer behavior and payment patterns. Resolve Pay's agentic collections system uses multi-channel automated sequences including email, SMS, and voice AI outbound calls with intelligent escalation.
The system operates on configurable day thresholds, automatically progressing from initial reminders through escalated follow-up while pausing when payments or disputes are received. All interactions log automatically to invoice records, maintaining complete audit trails without manual documentation.
This AI-driven approach preserves customer relationships through professional, consistent communication while achieving collection rates that manual processes cannot match. The system handles routine follow-up autonomously, freeing AR staff to focus on complex cases requiring human judgment.
Invoiced by Flywire provides accounts receivable automation and payment management capabilities for B2B finance teams. The platform offers capabilities including automated invoice generation, payment reminders, cash application, and customer portals.
With 4.5 out of 5 stars from 417 reviews on G2, Invoiced demonstrates user satisfaction for its core AR automation functions. Users praise the ease of use and automated payment reminders that help reduce manual follow-up work.
The platform provides operational tools for companies managing their receivables:
Invoiced by Flywire focuses on accounts receivable automation and global payment workflows, while Resolve Pay combines net terms financing, buyer credit decisioning, and AR automation for sellers seeking an integrated approach to B2B payments.
Traditional factoring companies have provided invoice financing for decades, establishing infrastructure for fast funding. Companies like FundThrough, altLINE, and numerous regional factors compete to advance cash against outstanding receivables.
The factoring industry's value proposition centers on speed to cash. Established factors can typically fund within 24-48 hours of approval, providing liquidity when businesses face cash needs. Buyer creditworthiness is an important underwriting consideration, alongside invoice validity and the seller's business profile.
Factoring arrangements may be appropriate in specific situations:
Factoring agreements differ in how they structure advances, reserves, recourse provisions, and collections. Businesses should review the applicable agreement terms before entering a factoring arrangement.
The technology gap between traditional factors and modern platforms grows increasingly significant. Most factoring companies operate outside business systems, requiring manual invoice submission and reconciliation. Few offer meaningful AR automation, meaning businesses using factoring may still need separate software for invoice management and collections on non-factored receivables.
Resolve Pay operates as a B2B payments platform that combines net terms financing, AR automation, and credit decisioning in a single solution. With over 15,000 businesses on the platform and a perfect 5.0 rating from G2 reviews, Resolve Pay delivers the working capital benefits of financing alongside the operational efficiency of AR automation software.
The platform addresses fundamental limitations of both traditional factoring and standalone invoicing software through an integrated approach:
Net Terms Financing
AI-Powered Credit Decisioning
Complete AR Automation
The platform's impact shows in customer outcomes. SS&SI Dealer Network achieved 5x revenue growth. ConEquip reported 30% year-over-year growth. Elston Materials increased margins from 25% to 30%, a 5-point improvement. Shields Childcare Supplies won new business by offering Net 90 terms they couldn't extend independently.
One customer, Archipelago Lighting, reduced their net terms approval time from 10 days to 24 hours while offering 20x higher credit lines.
The platform's flexibility accommodates diverse business models:
Resolve Pay was spun off from the B2B version of Affirm in 2018. Its team includes professionals with experience at Amazon, PayPal, and Fortune 500 firms. The company applies embedded finance and credit management principles to B2B transactions, helping merchants offer net terms while improving cash flow and managing credit risk.
B2B sellers need reliable working capital, efficient receivables management, and flexible payment terms to support growth. Resolve Pay brings these capabilities together through net terms financing, AI-powered credit decisioning, and accounts receivable automation.
The platform helps sellers address interconnected cash flow and AR challenges:
Resolve Pay combines non-recourse financing on eligible approved invoices, AI-powered credit decisions, comprehensive AR automation, and integrations with accounting systems and e-commerce platforms. This connected approach helps manufacturers, distributors, and wholesalers offer flexible payment terms while improving working capital and reducing manual receivables work.
The platform's integrated design eliminates the complexity of coordinating separate solutions for financing, credit evaluation, invoicing, and collections. Sellers access a single dashboard showing receivables health, credit decisions, payment status, and cash flow in real time.
Resolve Pay is a B2B payments platform that combines net terms financing, buyer credit assessment, invoicing, and accounts receivable automation. It helps manufacturers, wholesalers, and distributors offer flexible payment terms while improving cash flow and managing buyer credit risk.
Resolve Pay advances funds on approved invoices, typically depositing payment within 1-2 business days. Its AI-powered credit assessment can deliver buyer decisions within 24 hours, with some qualifying decisions available in real time.
Resolve Pay assumes covered buyer credit-default risk on eligible approved invoices. This helps sellers offer payment terms without carrying the same exposure to covered buyer defaults. Protection applies according to the approved transaction and applicable program terms.
Eligible sellers can offer business buyers flexible payment terms, including Net 30, Net 45, Net 60, and Net 90 options, depending on the approved program and buyer credit assessment. This gives businesses more flexibility when purchasing products and services.
Resolve Pay supports integrations with accounting and ERP systems such as QuickBooks Online, Xero, Sage Intacct, and NetSuite. E-commerce integrations include Shopify, BigCommerce, Magento 2, and WooCommerce. API capabilities are also available for custom integration requirements.
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.