Blog | Resolve

Mulligan Funding Alternatives: 7 Better Options for B2B Working Capital

Written by Resolve Team | Nov 19, 2025 3:32:08 PM

While Mulligan Funding provides quick access to working capital through short-term business loans that often function like merchant cash advances, businesses increasingly seek alternatives that offer transparent pricing, eliminate bad debt risk, and preserve customer relationships. B2B net terms financing from Resolve Pay stands out as a superior alternative by combining non-recourse funding with AI-powered accounts receivable automation.

Key Takeaways

  • Non-recourse financing eliminates risk: Resolve provides 100% non-recourse financing on approved invoices (typically subject to standard exclusions like fraud or disputes), while Mulligan’s short-term loans keep you on the hook for repayment even if customers pay late or default
  • Transparent, predictable pricing: Resolve uses flat, transparent fees typically in the ~2.61–3.5% range for 30-day terms, while Mulligan doesn’t publish clear rate ranges on its website, making true APR comparisons harder
  • AI-powered efficiency gains: Resolve's platform saves an average of 14+ hours weekly on AR tasks through automation while accelerating cash flow to approximately 1 day instead of 60
  • Revenue growth impact: Businesses using Resolve see average order value increases around 40% and approximately 20% year-over-year sales growth through enhanced buyer purchasing power
  • Customer relationship preservation: Resolve's white-labeled payment portal maintains direct merchant-customer relationships unlike traditional factoring
  • B2B-focused innovation: Resolve's embedded finance approach specifically addresses B2B commerce needs rather than repurposing consumer lending models

1. Resolve Pay — Non-Recourse B2B Financing Without the Headaches

Resolve Pay emerges as the definitive Mulligan Funding alternative by completely reimagining B2B working capital through its non-recourse financing model and AI-powered automation platform. Backed by Affirm's founding team and PayPal co-founder Max Levchin, Resolve delivers what traditional lenders cannot: risk-free growth capital with transparent pricing.

Key Features:

Operational Impact:

Resolve's AI-powered accounts receivable automation transforms B2B finance operations by eliminating manual processes that drain resources. The platform delivers quantifiable results:

  • Average of 14+ hours weekly savings on accounts receivable tasks
  • Cash flow acceleration to approximately 1 day instead of 60
  • Around 40% average order value increase through enhanced buyer purchasing power
  • Estimated 20% year-over-year sales growth for typical customers
  • Approximately 90% reduction in reconciliation time through automated ERP syncing

Unlike Mulligan's daily repayment deductions that strain cash flow, Resolve assumes all credit risk while buyers pay on their natural terms. The platform's free business credit checks require only a company name and address, delivering results within 24 hours without customer interaction.

For ecommerce businesses, Resolve's net terms integration enables instant approvals up to $25,000 with seamless checkout experiences across Shopify, BigCommerce, Magento, and WooCommerce. This modern factoring alternative eliminates the notification requirements and relationship damage associated with traditional factors.

The non-recourse structure means Resolve takes on 100% of the credit risk, protecting businesses from bad debt exposure entirely. This stands in stark contrast to traditional financing options that require personal guarantees and leave businesses vulnerable to customer defaults. By combining risk elimination with operational automation, Resolve enables businesses to focus on growth rather than collections and credit management.

2. SBA Small Business Loans — Government-Backed Low-Cost Capital

The Small Business Administration offers several loan programs providing low-cost, long-term financing for qualified businesses willing to navigate the application process. These government-backed options represent some of the most affordable capital available to small businesses.

SBA Loan Options:

  • 7(a) Loans: Up to $5 million for working capital, inventory, or business expansion
  • SBA Express: Faster processing with loans up to $500,000
  • 504 Loans: For major fixed assets like equipment or real estate
  • Microloans: Up to $50,000 for startups and small businesses

Key Considerations:

  • Interest rates typically range from 8-13% depending on prime rate and loan size
  • Repayment terms extend 7-25 years based on loan purpose
  • Requires strong personal credit (typically 680+ FICO) and solid business financials
  • Application process takes 30-90 days with extensive documentation
  • Personal guarantees required for loans over $200,000

While SBA loans offer significantly lower costs than Mulligan's merchant cash advances, the lengthy approval timeline and stringent requirements make them impractical for urgent capital needs. However, for businesses planning major investments with time to prepare comprehensive documentation, SBA financing remains an excellent option for affordable long-term capital.

The application process requires detailed financial statements, business plans, and often collateral documentation. Businesses should work with SBA-approved lenders who can guide them through the requirements and help structure applications for maximum approval likelihood.

3. Business Lines of Credit — Flexible Revolving Capital

Business lines of credit provide revolving access to capital that can be drawn and repaid as needed, offering flexibility for ongoing working capital requirements and seasonal cash flow fluctuations.

Key Features:

  • Credit limits typically range from $10,000 to $250,000
  • Only pay interest on amounts actually borrowed
  • Draw funds as needed through online portals or checks
  • Repayment terms usually 6-24 months with monthly payments
  • Can be secured (backed by assets) or unsecured

Top Providers:

  • Bluevine: Offers lines up to $250,000 with interest rates starting around 6.2%
  • OnDeck: Provides lines up to $250,000 with automated underwriting
  • Fundbox: Specializes in smaller lines up to $150,000 for newer businesses

Lines of credit work best for businesses with predictable revenue cycles who need periodic access to working capital. The revolving nature means you only pay for what you use, making them more cost-effective than term loans for variable capital needs.

While more flexible than term loans, traditional lines of credit still require personal guarantees and expose businesses to repayment obligations regardless of customer payment behavior. Unlike Resolve's non-recourse model, businesses remain liable for full repayment even if their customers default, creating ongoing risk exposure.

4. Invoice Factoring — Selling Receivables for Immediate Cash

Invoice factoring involves selling outstanding invoices to a third party (factor) at a discount in exchange for immediate cash, typically 70-90% of invoice value upfront.

Traditional Factoring Structure:

  • Advance rates of 70-95% on invoice value
  • Factoring fees typically 1-5% per 30 days
  • Recourse vs. non-recourse options (recourse is more common)
  • Customer notification requirements (factor collects directly)
  • Concentration limits restricting exposure to single customers

Limitations:

Traditional factoring damages customer relationships through third-party collection notifications and creates operational friction. Many factors require customers to remit payments directly to the factoring company, which can raise questions about the business's financial stability.

The non-recourse financing model eliminates these issues while providing similar cash flow benefits. Resolve's approach maintains direct merchant-customer relationships through branded payment portals while assuming all credit risk, offering the cash flow acceleration of factoring without the relationship damage.

5. Peer-to-Peer Business Lending — Marketplace Financing

Peer-to-peer (P2P) lending platforms connect businesses directly with individual or institutional investors, bypassing traditional banking channels and often offering faster approval processes.

Platform Characteristics:

  • Loan amounts typically $5,000-$500,000
  • Terms ranging from 6-60 months
  • Interest rates from 6-36% APR based on creditworthiness
  • Funding typically within 1-7 days after approval
  • Automated underwriting with minimal documentation

Leading Platforms:

  • LendingClub: Offers business loans up to $500,000
  • Funding Circle: Specializes in small business loans with competitive rates
  • Prosper: Provides business financing with transparent terms

P2P lending represents a middle ground between traditional bank financing and alternative lenders. These platforms use technology-driven underwriting to evaluate creditworthiness quickly while offering more competitive rates than many merchant cash advance providers.

While P2P lending offers faster approval than traditional banks, it still requires regular repayments regardless of customer payment behavior. The fixed repayment schedule can strain cash flow during slow periods, unlike Resolve's customer-dependent repayment model that aligns with natural business cycles.

6. Revenue-Based Financing — Flexible Repayment Aligned to Sales

Revenue-based financing provides capital repaid as a percentage of daily or weekly revenue, aligning payments with business performance and reducing strain during slower periods.

Key Features:

  • Repayment as percentage of daily/weekly credit card or bank deposits
  • No fixed repayment schedule - payments fluctuate with revenue
  • Factor rates typically 1.20-1.50 (20-50% total cost)
  • Funding usually within 24-72 hours
  • Minimal documentation requirements

Considerations:

While revenue-based financing offers flexibility during slow periods, the total cost often exceeds 30% APR when annualized. The daily payment deductions, even when fluctuating with revenue, can create administrative burden and cash flow visibility challenges.

Additionally, daily payment deductions can create cash flow challenges even during profitable periods, as money is constantly being diverted to repayment rather than reinvestment in inventory or operations. Resolve's approach eliminates this issue by having customers pay directly on their terms while the merchant receives immediate funding without ongoing deductions from their revenue streams.

7. Equipment Financing — Asset-Backed Capital for Growth

Equipment financing provides capital specifically for purchasing business equipment, with the equipment itself serving as collateral and reducing the risk for lenders.

Financing Structure:

  • Loan amounts typically 80-100% of equipment cost
  • Terms usually 24-84 months matching equipment useful life
  • Interest rates from 8-30% APR based on credit and equipment type
  • Equipment serves as primary collateral
  • Personal guarantees often required

Best Use Cases:

  • Manufacturing equipment purchases
  • Commercial vehicle fleets
  • Technology infrastructure upgrades
  • Medical or dental practice equipment
  • Restaurant kitchen equipment

Equipment financing works well for businesses needing specific capital assets but doesn't address general working capital requirements or accounts receivable challenges. The equipment itself provides collateral value, often making approval easier than unsecured financing options.

For businesses needing both equipment financing and working capital solutions, Resolve's net terms platform can complement asset-based lending by accelerating cash flow from customer sales, providing the working capital needed to support equipment investments and operational growth.

Making the Right Choice for Your Business

When evaluating Mulligan Funding alternatives, consider these key decision factors that align with your business's unique needs and growth trajectory:

Risk Tolerance:

  • Choose Resolve Pay for zero bad debt risk through non-recourse financing
  • Avoid recourse options if customer defaults would threaten your business stability

Cost Transparency:

  • Resolve’s flat fees, typically in the ~2.61–3.5% range for 30-day terms, provide predictable budgeting
  • Avoid lenders that don’t publish clear APR-equivalent costs or full rate ranges up front, which makes budgeting and comparison difficult

Customer Relationships:

  • White-labeled payment portals preserve direct customer relationships
  • Avoid third-party collection notifications that damage trust and raise questions about financial stability

Operational Efficiency:

  • AI-powered AR automation saves an average of 14+ hours weekly
  • Eliminate manual credit checks, invoicing, and collections that drain staff resources

Growth Impact:

  • Average 40% order value increase through enhanced buyer purchasing power
  • Estimated 20% year-over-year sales growth for typical customers

For B2B businesses seeking working capital without the drawbacks of merchant cash advances, Resolve Pay's combination of non-recourse protection, transparent pricing, and operational automation makes it a superior alternative to Mulligan Funding and traditional financing options.

Frequently Asked Questions

What is the main difference between Mulligan Funding and Resolve Pay?

The fundamental difference is risk allocation and pricing transparency. Mulligan Funding uses short-term working capital loans that often function like merchant cash advances, with costs that can be difficult to compare on an APR basis, while Resolve Pay provides 100% non-recourse financing on approved invoices (subject to standard exclusions) with flat, transparent fees typically in the ~2.61–3.5% range for 30-day terms. Additionally, Resolve assumes all bad debt risk and handles collections, while Mulligan requires merchants to maintain repayment obligations regardless of customer payment behavior.

Can startups with no revenue qualify for Resolve Pay?

Resolve Pay primarily serves established B2B businesses with existing customer relationships and revenue streams. However, the platform's free business credit checks can help startups understand their creditworthiness and qualification for net terms with suppliers. For pre-revenue startups, SBA microloans or startup-focused lenders may be more appropriate initial financing options.

How do Resolve Pay's fees compare to Mulligan Funding's costs?

Resolve Pay charges transparent flat fees typically in the ~2.61–3.5% range for 30-day terms, while Mulligan Funding doesn’t publish clear rate ranges, and total borrowing costs can vary significantly. Resolve’s pricing structure is clearly disclosed upfront with no hidden fees, making it easier for businesses to budget and understand the true cost of capital compared to less transparent short-term loan pricing models.

What are the fastest funding options that don't require perfect credit?

Resolve Pay typically provides funding within about 24–48 hours for qualified businesses, focusing heavily on buyer credit quality and invoice strength rather than a single minimum FICO score. For businesses with weaker credit profiles, some short-term lenders may offer fast approval but at significantly higher costs. Businesses should carefully weigh the speed of funding against the total cost of capital when evaluating options with flexible credit requirements.

How does modern B2B payment financing compare to traditional merchant cash advances?

Modern B2B payment platforms like Resolve Pay fundamentally differ from merchant cash advances by aligning financing with natural business cycles rather than imposing artificial repayment schedules. Instead of daily deductions that strain cash flow, Resolve Pay provides immediate funding while customers pay on their natural 30-90 day terms. The non-recourse structure eliminates bad debt risk, and transparent fees replace opaque factor rates, creating a sustainable financing model that supports rather than hinders business growth.

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.