7 Best Merchant Growth Alternatives

The estimated $350+ billion alternative lending market is rapidly evolving, and for B2B merchants, the choice of a growth partner is more critical than ever. From Resolve's AI-powered, non-recourse financing to established revenue-based models, these alternatives offer pathways to scale without sacrificing cash flow or assuming undue risk. Resolve's B2B net terms platform leads the pack by combining embedded payments, credit underwriting, and advance funding into a single, risk-free solution.

Key Takeaways

• Non-recourse financing is the gold standard: Resolve provides 100% non-recourse financing with advance payments of up to 100% on approved invoices, meaning all cash you receive is yours to keep, with Resolve assuming the majority of late payment or default risk.
• AI is revolutionizing credit access: Modern platforms use AI to analyze thousands of data points, helping to expand credit access for small and medium businesses traditionally missed by conventional scoring models.
• Speed to capital is non-negotiable: In a market where only 41% of small businesses receive all the financing they apply for, solutions that fund in days, not months, are essential.
• Embedded finance is the future: The market for embedded financial services is projected to exceed $500 billion by 2030, with seamless integration into merchant workflows becoming a key differentiator.
• Revenue-based models are surging: The revenue-based financing market is forecasted to surpass $9.8 billion in 2025, offering non-dilutive capital that scales with business performance.

1. Resolve — Your AI-Powered Credit Team on Tap

Resolve is the definitive choice for B2B merchants seeking to offer net terms, accelerate cash flow, and grow revenue—all without taking on the risk of late payments or defaults. Spun out of Affirm in 2019 to focus on B2B commerce, Resolve's platform is the "nerve center" for every B2B transaction, whether it happens on an ecommerce site, through a sales rep, or in a marketplace.

Key Features:

• Non-recourse financing: All cash advances are non-recourse so what you get is always yours to keep. Resolve takes on the credit assessment, credit decision, and the majority risk of late payments or defaults.
• Fast cash flow: Receive an advance of up to 100% on invoices from your approved customers within a single day, while your buyers get 30, 60, or 90 days to pay.
• AI-powered underwriting: Proprietary AI models evaluate thousands of buyer data points to generate dynamic, scalable credit decisions in real time, far beyond what traditional bureaus can offer.
• Complete AR automation: An AI-powered accounts receivable platform automates your entire net terms workflow—from invoice to payment—reducing Days Sales Outstanding (DSO), accelerating cash flow, and transforming your customer's payment experience.
• Seamless integrations: Built-in integrations with leading platforms like QuickBooks, Oracle, Shopify, and BigCommerce mean you can be up and running in days, not months.
• White-label experience: A branded payment portal allows your customers to pay by ACH, wire, credit card, or check, strengthening your brand relationship.

Transparent, Risk-Based Pricing:

• Fees are risk-based and vary by advance percentage and term length. Public example fee ranges show fees of 2.61% or up to 3.5% on 30-day net terms.
• No monthly minimums, setup fees, or hidden charges.
• Credit card processing fees are passed on to your buyer through the online payment portal.

Resolve's experts, formerly of Amazon, PayPal, and Fortune 500 firms, deliver deeper credit insights than traditional bureaus, enabling you to confidently extend credit to more buyers. The platform's AI agents manage the time-consuming tasks of payment reminders, servicing, and collections, freeing your team to focus on growth. This end-to-end solution is a modern alternative to factoring, streamlining credit, invoicing, and collections while empowering finance leaders to scale operations with precision. Trusted by over 12,000 businesses, Resolve is the easiest way to increase your customers' buying power and, in turn, your own revenue.

2. Revenue-Based Financing (RBF) Providers

Revenue-based financing has emerged as a popular non-dilutive funding source, especially for SaaS and subscription-based businesses. In this model, a financier provides capital in exchange for a fixed percentage of your ongoing gross revenue until a predetermined repayment cap—typically 1.5x to 3x the original amount—is met.

Core Mechanics:

• Repayment is flexible and tied directly to your business's top-line performance. When your revenue grows quickly, you repay faster and at a lower total cost. When it slows, repayment stretches out.
• It requires no personal guarantees, no equity dilution, and no fixed monthly payments, making it a much more flexible alternative to a traditional loan.
• The global RBF market is forecasted to surpass $9.8 billion in 2025 and is projected to reach approximately $42 billion by 2031.

Key Considerations for Merchants:

• Eligibility is specific: RBF is best suited for businesses with predictable, recurring revenue (e.g., MRR of €30,000+). It's generally not a fit for traditional B2B manufacturers or wholesalers with one-off invoices.
• Cost can be high: While non-dilutive, the total cost of capital can be significant if your business grows very quickly, as you hit the repayment cap sooner.
• Use of funds is often unrestricted: Unlike a loan for a specific asset, RBF capital can typically be used for any business purpose, from marketing to hiring.

For a B2B merchant whose primary need is to finance customer invoices, RBF is a complementary but distinct tool from a platform like Resolve. Resolve directly addresses the accounts receivable gap by advancing on specific invoices, while RBF provides general working capital against future revenue.

3. Traditional Bank Loans and SBA Programs

Traditional bank loans and Small Business Administration (SBA) programs remain a cornerstone of business financing. These options are often the cheapest form of debt on a purely interest-rate basis but come with significant barriers to access.

The Traditional Path:

• Low, fixed interest rates: If you qualify, a bank loan will have a lower annual percentage rate (APR) than most alternative financing options.
• Lengthy application processes: Securing a bank loan can take weeks or months and requires extensive documentation, including financial statements, tax returns, and a detailed business plan.
• Collateral and personal guarantees: Banks often require a lien on business assets and a personal guarantee from the business owner, putting personal finances at risk.

The SBA Alternative:

• SBA loans are government-guaranteed, which reduces risk for the bank and can make them more accessible to some small businesses.
• They still require a creditworthy business and owner, strong financials, and a clear repayment plan. The process is often even longer than a conventional loan.

The Access Gap:

Despite their low cost, traditional options are not a reality for most SMBs. According to the Federal Reserve, only 41% of small businesses received all the financing they applied for in 2024. Banks' traditional credit-scoring models rely on limited data points that often fail to capture the true potential of modern, asset-light businesses. For a merchant whose cash flow is tied up in 60-day invoices, waiting months for a loan approval is not a viable growth strategy.

4. Invoice Factoring and Receivables Financing

Invoice factoring is a long-standing method of accounts receivable financing where a business sells its unpaid invoices to a third party (a factor) at a discount in exchange for immediate cash.

The Factoring Process:

• A factor will typically advance 70-90% of an invoice's value within 24 to 48 hours.
• Once the end customer pays the invoice, the business receives the remaining balance, minus a factoring fee (usually 1-5%).
• Factoring can be "recourse" (the business is liable if the customer doesn't pay) or "non-recourse" (the factor assumes the credit risk).

Pros and Cons for Merchants:

• Speed: It's a fast way to convert outstanding invoices into working capital.
• Risk: Recourse factoring shifts no risk, and non-recourse factoring is often expensive and reserved for the most creditworthy of your customers.
• Customer relationship: In a "notification" factoring arrangement (the most common type), your customer is informed that their invoice has been sold to a third party, which can complicate your direct relationship with them.

Resolve stands in stark contrast to traditional factoring. Resolve's model is built to be a seamless extension of your business. It's non-recourse, and its white-label, branded payment portal keeps you at the center of the customer relationship. You retain control, and Resolve simply becomes your expert, on-demand "credit team."

5. Merchant Cash Advances (MCAs)

A merchant cash advance provides a lump sum of cash in exchange for a percentage of a business's future credit and debit card sales. Repayment is taken as a fixed or variable percentage of daily card transactions until the advance, plus a "factor rate," is fully paid off.

MCA Characteristics:

• Extremely fast funding: MCAs can be funded in as little as 24 hours, with a high 80% average approval rate.
• Daily repayments: The repayment structure, which is tied to daily sales, can be a double-edged sword. It's flexible during slow periods but can create a significant cash flow drain during peak sales times.
• High cost: Factor rates on MCAs can translate to annualized interest rates that are significantly higher than any other form of financing, often ranging from 40% to over 150% APR.

Why it's often not a fit for B2B:

MCAs are designed for B2C businesses with high volumes of daily card transactions, like restaurants or retail stores. A B2B merchant who invoices their customers and receives payment by ACH or check has no daily card sales to assign, making an MCA an irrelevant and often predatory option.

6. Business Grants

Grants are a form of non-repayable funding provided by government agencies, non-profits, or private corporations, often for specific purposes like research, innovation, or community development.

The Reality of Grants:

• Highly competitive: Grant applications are notoriously difficult to secure, with a huge number of applicants vying for a limited pool of money.
• Time-consuming: The application process can take months of dedicated work, with no guarantee of success.
• Restrictive: Grants are usually tied to a very specific use case or project and cannot be used as general working capital.

While grants are an attractive "free money" concept, they are an unreliable and impractical primary strategy for a B2B merchant looking to solve immediate cash flow issues or scale their sales operations. The time it takes to secure a grant is time your business is not growing.

7. Business Credit Cards

Business credit cards are a common and flexible form of short-term financing for small purchases and expenses. They offer a revolving line of credit that can be used for a variety of business needs.

When They Work:

• For managing small, recurring expenses and building a business credit history.
• For earning rewards and cash back on regular business spending.

Their Limitations for Growth:

• Low credit limits: Credit lines are often insufficient to finance significant inventory purchases or cover large payroll gaps.
• High interest rates: If you carry a balance, the APR can be very high, quickly eroding any profit margin on a sale.
• Personal liability: Many business credit cards require a personal guarantee, especially for new businesses.

A business credit card is a useful tool in a well-rounded financial toolkit, but it is not a scalable solution for the core working capital and credit extension challenges faced by a growing B2B merchant.

Choosing the Right Growth Partner for Your B2B Business

The best merchant growth alternative depends entirely on your specific business model, cash flow needs, and risk tolerance.

• For a B2B manufacturer or wholesaler selling on invoice, the choice is clear: you need a solution that directly addresses your accounts receivable. Resolve's non-recourse net terms platform is purpose-built to let you offer your buyers extended payment terms while you get paid in a day, all without assuming any risk.
• For a SaaS or subscription business with strong recurring revenue, revenue-based financing can be a powerful, non-dilutive growth lever.
• For a mature, asset-rich business with pristine financials, a traditional bank loan may offer the lowest cost of capital.
• For a B2C retailer with high daily card sales, an MCA might provide a quick cash injection, though at a high cost.

In a landscape where the global SME finance gap is estimated at a staggering $5 trillion, it's crucial to choose a partner that understands your unique challenges. Resolve's guiding vision is simple, relational, and embedded—designed to enhance your customer relationships while streamlining the complex workflows of B2B commerce. By combining embedded credit expertise, embedded invoice financing, and embedded payments into one platform, Resolve offers a comprehensive and superior alternative for the modern B2B merchant.

Frequently Asked Questions

What is the difference between merchant services and payment processing?

Merchant services is a broad umbrella term that encompasses all the financial services a business uses to accept and manage payments, including payment processing. Payment processing is the specific act of transferring funds from a customer's bank account to a merchant's account. A full-service merchant services provider like Resolve goes beyond simple payment processing to offer credit underwriting, invoice financing, and accounts receivable automation.

How do non-recourse invoice advances work for business funding? 

With a non-recourse invoice advance, a financing company (like Resolve) pays you a large percentage (up to 100%) of an approved customer's invoice upfront. If that customer later fails to pay the invoice, you are not liable to repay the advance to the financier. The financier assumes the credit risk. This is in stark contrast to a recourse advance or a loan, where you are on the hook for repayment regardless of your customer's actions. At Resolve, all cash advances are non-recourse, so what you get is always yours to keep.

Can I get business funding without revenue or credit history?

It is extremely difficult to secure any form of debt financing without a track record of revenue or a business credit history. Lenders, including alternative lenders, need to assess your ability to repay. However, some solutions are more flexible. Revenue-based financiers look at your recurring revenue stream, not your credit score. Resolve's free business credit check service can help you understand your buyer's creditworthiness quickly, which can help you make sales to new customers with confidence, thereby building your own revenue history.

What are the typical fees for B2B net terms and BNPL services?

Fees for B2B net terms services are typically a flat percentage of the invoice amount and are risk-based. At Resolve, fees are up to 3.5% on 30-day net terms when advancing 100% of the invoice value. Other models, like invoice factoring, charge a fee based on the invoice's age and the customer's credit risk. It's important to compare the total cost and the advance rate when evaluating different providers.

How long does it take to integrate merchant services with QuickBooks?

The integration time varies widely by provider. Modern, API-first platforms like Resolve offer a seamless QuickBooks Online integration that can be set up in minutes. The system will automatically sync your transaction data in real-time, mapping payments to the original invoices and pushing records directly to your QuickBooks ledger, eliminating manual entry and reconciliation. This is a significant advantage over legacy systems that require complex and time-consuming custom integrations.

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.