For B2B businesses seeking working capital, Merchant Cash Group and similar providers offer merchant cash advances (MCAs) that can strain cash flow with daily debits and high effective costs. Modern alternatives like Resolve's B2B Net Terms platform provide a specialized, lower-risk approach that aligns with B2B sales cycles while eliminating the burden of daily repayments.
Resolve stands out as the premier alternative to Merchant Cash Group by offering a purpose-built B2B financing platform that eliminates seller risk while providing upfront capital based on your approved invoices. Rather than purchasing your future general revenue, Resolve purchases your specific accounts receivable with a 100% non-recourse guarantee.
Key Features:
How It Works:
When you offer net terms to your B2B customers through Resolve, the platform handles the entire credit assessment process. Using just your customer's business name and address, Resolve delivers instant credit decisions based on proprietary algorithms and data sources beyond traditional credit bureaus. For approved buyers, Resolve advances up to 100% of your invoice value within one day, while your customer maintains their standard Net 30, 60, or 90 payment terms.
This structure completely eliminates the cash flow strain associated with MCAs. Instead of daily withdrawals regardless of your business performance, you receive a lump sum upfront that you can use immediately for operations, inventory, or growth initiatives. Resolve then manages the entire receivables process, including sending payment reminders and handling collections if needed.
Cost Comparison:
The financial advantage of Resolve over Merchant Cash Group is substantial. Consider a scenario where you need $100,000 in working capital:
This represents estimated direct savings of over $20,000 in financing costs alone. Additionally, Resolve's platform provides operational savings through AR automation and bad debt protection, estimated at approximately $23,600, creating a net negative cost scenario compared to traditional MCA providers.
Resolve's AI-powered accounts receivable platform further enhances value by automating the entire invoice-to-cash workflow. The system handles credit checks, invoice generation, payment reminders, and reconciliation, reducing manual administrative work by up to 90%. This comprehensive approach addresses the root cause of cash flow issues for B2B businesses—slow-paying customers—rather than just providing temporary liquidity like MCAs.
Merchant Cash Advances (MCAs) from providers like Merchant Cash Group operate on a fundamentally different model than B2B financing solutions. MCAs purchase a fixed percentage of your future sales at a factor rate typically between 1.1x and 1.5x, which translates to effective annual percentage rates (APRs) ranging from 30% to over 350%. Repayment occurs through daily or weekly withdrawals directly from your bank account or as a percentage of daily card sales, creating constant cash flow pressure regardless of your actual business performance.
This model works poorly for B2B businesses that operate on invoice-based sales with Net 30, 60, or 90 payment terms. The daily debit structure of MCAs doesn't align with B2B cash flow cycles and can create severe liquidity constraints during slower periods. According to the Fed Communities on small business financing, cash flow management remains one of the top challenges for B2B companies, particularly those extending credit terms to customers. Additionally, MCA providers assume no risk for your customer relationships—they simply withdraw funds until their total payback amount is collected.
Traditional invoice factoring companies offer another alternative to Merchant Cash Group, though with significant limitations compared to modern platforms like Resolve. Factoring involves selling your invoices to a third party at a discount, typically receiving 70-90% upfront with the remainder (minus fees) paid when your customer settles the invoice.
Key Characteristics:
While factoring uses your accounts receivable as collateral (similar to Resolve), it lacks the seamless integration, non-recourse protection, and buyer experience that modern B2B platforms provide. Traditional factoring companies often require long-term contracts, monthly minimums, and extensive documentation, making them less flexible than both MCAs and modern alternatives like Resolve.
For businesses specifically seeking invoice financing, Resolve's Better Than Factoring solution addresses these limitations with 100% non-recourse financing, higher advance rates, and a white-label buyer experience that maintains your customer relationships.
Business lines of credit from banks or online lenders represent another common alternative to merchant cash advances. These revolving credit facilities allow you to draw funds up to a predetermined limit and pay interest only on the amount used.
Key Characteristics:
While lines of credit offer more predictable repayment terms than MCAs, they still require regular repayments regardless of your cash flow situation. More importantly, they don't solve the fundamental challenge that drives B2B businesses to seek financing: the gap between when you deliver goods/services and when your customers pay their invoices.
Unlike Resolve's invoice-specific financing, lines of credit provide general working capital that doesn't directly correlate to your sales cycle. This means you're paying interest on borrowed funds even when your accounts receivable are current, creating unnecessary financing costs. The U.S. Small Business Administration notes that matching your financing type to your specific business needs is crucial for sustainable growth.
Revenue-based financing (RBF) providers offer a middle ground between traditional loans and merchant cash advances. These lenders provide capital in exchange for a fixed percentage of your future revenue until a predetermined repayment cap is reached.
Key Characteristics:
RBF shares some similarities with MCAs in its revenue-based repayment structure, though terms are generally more favorable with lower repayment caps. However, like MCAs, RBF doesn't align with B2B invoice cycles and continues to withdraw funds regardless of your specific customer payment patterns.
For B2B businesses, Resolve's invoice-specific approach provides superior alignment with actual cash flow needs. Instead of paying a percentage of all revenue, you pay a flat fee only on invoices that have been financed, creating more predictable and directly correlated financing costs.
For businesses with large corporate customers, supply chain finance (SCF) or reverse factoring programs offer another alternative. These programs are initiated by the buyer (your customer) and allow you to receive early payment on approved invoices at rates based on the buyer's creditworthiness.
Key Characteristics:
While SCF programs can provide low-cost early payment for invoices from specific customers, they lack the universality of Resolve's platform. With Resolve, you can offer net terms and receive early payment for your entire customer base, not just those with established SCF programs. This comprehensive approach ensures consistent cash flow across all your B2B relationships rather than creating a two-tier system based on customer size.
The fundamental difference between Resolve and other alternatives lies in its integrated, purpose-built design for B2B commerce. While MCAs, factoring, and other financing options treat working capital as a separate problem to be solved with borrowed funds, Resolve embeds financing directly into the B2B sales process.
This integration creates several unique advantages:
Risk Elimination: Resolve's 100% non-recourse model means you never bear the risk of customer non-payment. This is fundamentally different from MCAs, where you remain fully liable for repayment regardless of your own customer payment issues.
Cash Flow Alignment: By financing specific invoices rather than general revenue, Resolve aligns financing costs directly with your sales cycle. You pay only for the capital you actually use to bridge specific payment gaps.
Operational Efficiency: Resolve's AI-powered automation handles the entire credit-to-cash workflow, from initial credit checks to final payment reconciliation. This reduces administrative overhead while improving cash flow predictability.
Customer Experience: Resolve's white-label platform maintains your brand relationship with customers while providing them flexible payment options. This enhances buyer loyalty and increases order sizes without the complexity of managing multiple financing relationships.
Technology Integration: With seamless connections to major platforms, Resolve eliminates manual data entry and ensures real-time synchronization across your financial systems.
Unlike traditional financing alternatives that require extensive documentation and lengthy approval processes, Resolve offers rapid onboarding for qualified B2B businesses. The platform integrates with your existing systems in days rather than weeks or months, with pre-built connectors for major e-commerce and accounting platforms.
Getting started involves:
The platform's self-service design allows you to manage your entire B2B payment process through a single dashboard, with real-time visibility into credit decisions, advance payments, and customer payment status.
Merchant cash advances purchase a percentage of your future general revenue with daily repayments and high effective costs (30% to over 350% APR). Invoice financing, like Resolve's platform, provides upfront payment on specific approved invoices with repayment aligned to your B2B sales cycle. Resolve's non-recourse model eliminates seller risk, while MCA providers continue withdrawing funds regardless of your actual cash flow situation.
Yes, offering net terms can significantly increase sales volume and customer retention. B2B buyers expect flexible payment terms, and businesses that can provide Net 30, 60, or 90 terms gain a competitive advantage. Resolve's platform makes this possible without cash flow risk, as you receive payment upfront while your customers maintain their preferred terms. This increases buyer purchasing power, enables larger orders, and builds long-term customer loyalty.
Resolve's AI-powered platform proactively manages the entire accounts receivable lifecycle. The system automatically sends payment reminders based on customer payment patterns, escalates collections for late payments, and uses predictive analytics to identify potential payment issues before they occur. Additionally, Resolve's initial credit assessment uses proprietary algorithms that evaluate thousands of data points beyond traditional credit scores, reducing the likelihood of extending credit to high-risk buyers.
Yes, Resolve's non-recourse financing is truly risk-free for your business. When Resolve approves a buyer and advances payment on their invoice, they assume 100% of the credit risk. If the buyer fails to pay, defaults, or becomes insolvent, you keep the advanced funds with no obligation to repay Resolve. This is fundamentally different from recourse factoring or merchant cash advances, where you remain liable for repayment regardless of customer payment issues.
Resolve provides instant credit decisions for most businesses using just the customer's business name and address. For purchases up to $25,000, instant approvals are often available. For larger credit lines, the process typically takes less than 24 business hours. Unlike traditional financing that requires extensive documentation and personal guarantees, Resolve's automated underwriting system evaluates business creditworthiness based on real-time data and payment history.
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.