Kalamata Capital Group Alternatives

While Kalamata Capital Group has funded over $1 billion in merchant cash advances since 2013, many B2B businesses are increasingly looking for more transparent, affordable alternatives that avoid the high costs and aggressive collection practices often associated with MCAs; Federal Reserve research highlights the broader growth of alternative financing as companies seek clearer, lower-friction funding options. For sellers offering net 30, 60, or 90-day terms, modern non-recourse platforms can be a better fit than MCA models built around credit card sales, because they’re designed for invoice-based cash flow and relationship-preserving collections—an idea reinforced by industry analysis noting that merchant cash advances are among the most expensive forms of business funding.

Key Takeaways

Non-recourse financing eliminates risk: Resolve provides 100% non-recourse financing with advance pay up to 100% on approved invoices, ensuring what you get is always yours to keep
Dramatically lower costs: Resolve's transparent flat fee structure of 2.61-3.5% for 30-day terms versus significantly higher costs from traditional merchant cash advances
Complete AR automation platform: Unlike MCA lenders, Resolve offers AI-powered AR automation that reduces manual work by approximately 50%
Preserves customer relationships: White-label payment portal maintains your brand integrity versus factors that contact customers directly
Fast implementation: Hours to days via e-commerce integrations versus weeks for traditional financing solutions
AI-powered credit decisions: Real-time underwriting in 30 seconds to 48 hours versus manual processes that take days or weeks

1. Resolve — The Modern Alternative to Merchant Cash Advances

Resolve Pay stands as the premier Kalamata Capital Group alternative by completely eliminating merchant risk through its 100% non-recourse financing model. Founded in 2019 as a B2B spin-off from Affirm, Resolve brings consumer fintech innovation to B2B net terms financing with transparent pricing and complete automation.

Key Features:

100% non-recourse financing with zero merchant liability for approved buyers
Flat fee pricing of 2.61-3.5% for 30-day net terms (dramatically lower than MCAs)
AI-powered credit decisions in 30 seconds to 48 hours
Advance pay options up to 100% on approved invoices within 24 hours
Complete AR automation reducing manual workload by approximately 50%
White-label payment portal preserving customer relationships
Seamless integrations with QuickBooks, Shopify, BigCommerce, NetSuite, and more

Transparent Pricing Structure:

Net 30 terms: 2.61-3.5% flat fee based on risk
Net 60/90 terms: Risk-based pricing
No monthly minimums, setup fees, or hidden charges
Credit card fees passed on to buyers via payment portal
Custom plans available for enterprise volumes

Unlike merchant cash advances that strain daily cash flow with automatic debits regardless of revenue fluctuations, Resolve pays you upfront while your customers maintain their 30-60 day payment terms. The platform's AI-driven reconciliation automates the entire net terms workflow from invoice to payment, reducing DSO and accelerating cash flow.

Recent case studies demonstrate significant impact: businesses report average order value increases of approximately 40% and AR workload reduction of around 50%. The platform currently serves over 15,000 businesses and is trusted by market leaders across wholesale, distribution, and manufacturing sectors.

Resolve's experts—formerly of Amazon, PayPal, and Fortune 500 firms—deliver deeper credit insights than traditional bureaus, enabling real-time decisions that support business growth without exposing merchants to credit risk.

2. Traditional Invoice Factoring — The Established but Flawed Alternative

Traditional invoice factoring represents the long-standing alternative to merchant cash advances, though it comes with significant limitations compared to modern platforms like Resolve. The factoring industry operates on recourse models that often leave merchants liable for customer defaults.

Industry Characteristics:

Recourse financing with shared or full merchant liability
Monthly fees typically ranging from 1-5%
Advance rates of 70-90% of invoice value
Factor contacts customers directly for payment
Complex multi-layer fee structures
Manual underwriting processes taking 1-5 business days

Cost Comparison:

Typical factoring: 1-5% monthly fees
Total annual cost can be substantial when compounded
Additional fees: Setup ($500-2,500), monthly minimums ($10K-50K)
Lower advance rates reduce available working capital

While factoring eliminates the extreme costs of merchant cash advances, it introduces customer relationship challenges as factors contact buyers directly for payment. Resolve's white-label approach preserves merchant control over customer interactions while providing higher advance rates (up to 100% versus 70-90%).

The factoring industry's reliance on manual processes and complex fee structures makes it increasingly uncompetitive against AI-powered platforms that offer transparent pricing, faster decisions, and complete automation.

3. CAN Capital — Another MCA Provider with Similar Limitations

CAN Capital represents one of the oldest merchant cash advance providers, operating since 1998 with a similar business model to Kalamata Capital Group. While offering fast approval and funding, it shares the same fundamental limitations of high costs and recourse liability.

MCA Characteristics:

Higher costs compared to modern B2B financing platforms
Daily or weekly automatic debits from bank account
Recourse liability with merchant bearing full risk
Lenient approval standards based on revenue rather than credit
Collection practices that may impact business operations

Structural Limitations:

Strains daily cash flow with automatic withdrawals
Limited transparency in published rates or terms
Minimal online presence or customer support options
No AR automation or customer relationship management

According to Small Business Administration data, businesses benefit most from financing options that align with their specific revenue models. For B2B businesses with invoice-based revenue, modern non-recourse platforms offer dramatically better economics and risk protection compared to traditional MCA providers.

4. OnDeck Capital — Term Loans with Traditional Limitations

OnDeck Capital offers short-term business loans as an alternative to merchant cash advances, though with traditional lending limitations that may not suit B2B invoice-based businesses. Founded in 2007, OnDeck provides term loans up to $250,000 with 24-month repayment terms.

Loan Structure:

APR starting at 27.3%
Fixed monthly payments versus daily debits
Term lengths of 3-24 months
Maximum loan amount of $250,000
Traditional underwriting based on credit and financials

Comparison to Modern Platforms:

Higher costs than modern B2B net terms financing
Recourse liability with personal guarantees often required
No integration with B2B payment workflows
No AR automation or customer payment portals
Traditional monthly payment structure doesn't align with B2B cash flow cycles

While OnDeck eliminates the daily cash flow strain of merchant cash advances, it doesn't address the fundamental needs of B2B businesses that operate on net 30/60/90 payment terms. Resolve's invoice-based model aligns naturally with B2B commerce, providing working capital tied directly to customer invoices rather than general business debt.

5. Credibly — Flexible Financing with MCA Limitations

Credibly offers flexible financing options including merchant cash advances and revenue-based financing, with advance amounts ranging from $5,000 to $400,000. Operating since 2010, Credibly provides 3-15 month terms with flexible repayment structures.

Financing Options:

Revenue-based financing with flexible terms
Advance amounts of $5K-$400K
3-15 month repayment periods
Lenient qualification standards
Fast approval and funding (1-3 days)

Persistent MCA Considerations:

Higher costs compared to specialized B2B platforms
Recourse liability with merchant risk exposure
Automatic debits that strain cash flow
No B2B-specific features or integrations
No AR automation or customer relationship management

Credibly's flexible approach may appeal to businesses with mixed revenue streams, but it doesn't solve the fundamental mismatch between MCA models and B2B invoice-based commerce. For businesses specifically seeking net term financing, Resolve's purpose-built platform offers superior economics, risk protection, and operational efficiency.

Why Modern B2B Platforms Are Replacing Traditional Financing

The shift from merchant cash advances and traditional factoring to modern B2B platforms reflects fundamental changes in business needs and technology capabilities. Three key trends are driving this transformation:

Risk Elimination Through Non-Recourse Financing

The most significant advancement is the elimination of merchant credit risk through 100% non-recourse financing. Unlike traditional merchant cash advance models that leave merchants liable for customer defaults, Resolve assumes all credit risk for approved buyers. This enables businesses to offer net terms confidently without exposing their cash flow to bad debt.

According to research on alternative financing models, non-recourse financing has become increasingly popular among B2B businesses seeking to grow sales while protecting working capital. This risk transfer represents a fundamental shift in how businesses approach trade credit and cash flow management.

Transparent, Predictable Pricing

Modern platforms replace opaque factor rates and complex fee structures with transparent flat fees that are easy to understand and budget for. Resolve's transparent pricing of 2.61-3.5% for 30-day terms represents a fraction of traditional merchant cash advance costs, enabling better financial planning and higher profit margins.

This pricing transparency addresses a major pain point identified by business owners who previously struggled to understand the true cost of alternative financing. With flat fees and no hidden charges, businesses can accurately forecast financing costs and make informed decisions about which invoices to advance.

Complete Automation vs. Finance-Only Solutions

Beyond financing, modern platforms like Resolve provide complete AR automation that reduces manual work by approximately 50% while accelerating cash flow. This holistic approach addresses the entire B2B payment lifecycle from credit approval to collections, eliminating the need for multiple vendors and manual processes.

The automation extends to credit checking, invoice processing, payment reminders, reconciliation, and reporting. For businesses processing hundreds or thousands of invoices monthly, this automation delivers substantial operational savings that often exceed the cost of financing itself, creating a net-positive economic impact.

Making the Right Choice for Your B2B Business

For B2B companies evaluating Kalamata Capital Group alternatives, the choice depends on your specific business model and needs:

Choose Resolve Pay when you:

Operate on B2B invoice-based revenue with net 30/60/90 terms
Want to eliminate credit risk through non-recourse financing
Need transparent, low-cost financing compared to traditional alternatives
Require AR automation to reduce manual workload
Want to preserve customer relationships through white-label solutions
Seek fast implementation through modern integrations

Consider Traditional Financing when you:

Have primarily credit card sales (retail/restaurant model)
Cannot qualify for any other financing options
Have specific needs not addressed by invoice-based platforms
Don't have B2B invoice-based revenue streams

Total Cost of Ownership Reality Check

For a business financing $250,000 in annual invoices:

Resolve Pay: Estimated $6,525-$8,750 in fees with AR labor savings of approximately $15,000
Traditional MCA: Substantially higher fees plus potential bad debt exposure
Traditional Factoring: Estimated $7,500 in fees plus setup and monthly charges

Resolve offers net savings due to AR automation reducing labor costs, while maintaining competitive pricing that makes financing accessible for growing B2B businesses.

The economic case for modern B2B financing platforms extends beyond direct cost savings. By eliminating credit risk, accelerating cash flow, and automating manual processes, platforms like Resolve enable businesses to focus resources on growth initiatives rather than administrative tasks and collections management.

Frequently Asked Questions

How do modern B2B payment platforms differ from merchant cash advances?

Modern B2B platforms like Resolve offer transparent flat fees of 2.61-3.5% for 30-day terms, compared to significantly higher costs associated with traditional merchant cash advances. MCAs typically use daily or weekly automatic debits that strain cash flow regardless of business revenue, while Resolve pays you upfront and collects directly from your customers. Most importantly, Resolve provides 100% non-recourse financing that eliminates merchant risk, versus MCAs that maintain full recourse liability.

What are the benefits of non-recourse invoice financing for my business?

Non-recourse financing eliminates your exposure to customer defaults by transferring all credit risk to the financing provider. This means you keep 100% of advanced funds even if approved customers fail to pay (excluding fraud or disputes). For B2B businesses, this enables confidently offering net terms to drive sales growth without jeopardizing cash flow. The risk elimination allows you to accept larger orders and work with customers who might otherwise be considered too risky.

Can B2B BNPL (Buy Now, Pay Later) options truly accelerate my cash flow?

Yes, B2B BNPL platforms like Resolve accelerate cash flow by providing advance payment within 24 hours while your customers maintain their 30-60 day payment terms. This reduces your days sales outstanding (DSO) from 45-60 days to just 1 day, dramatically improving working capital. Businesses typically see increases in average order value of approximately 40% as customers can purchase more when offered flexible payment terms, further accelerating revenue growth.

How does AI improve the efficiency and accuracy of accounts receivable management?

AI-powered AR automation reduces manual workload by approximately 50% through automated credit checks, invoice processing, payment reminders, and reconciliation. Machine learning algorithms analyze payment patterns to optimize collection timing and reduce late payments. AI-powered credit decisions evaluate thousands of data points in real-time, delivering approvals in 30 seconds to 48 hours versus days or weeks for manual underwriting. This automation eliminates errors, accelerates cash flow, and frees your team to focus on strategic activities rather than administrative tasks.

Is a free business credit check a reliable way to assess buyer creditworthiness?

Resolve's free business credit checks leverage AI, behavioral signals, and expert analysis from former Amazon, PayPal, and Fortune 500 professionals to deliver deeper insights than traditional credit bureaus. The platform requires only a business name and address, providing results within 24 hours. This approach combines traditional credit data with cash flow analysis and business performance metrics to generate more accurate risk assessments than credit scores alone, making it a reliable foundation for B2B credit decisions.

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.