7 National Funding Alternatives

While National Funding offers merchant cash advances and revenue-based financing to small businesses, modern alternatives provide more transparent pricing, faster funding, and innovative approaches to working capital. From Resolve's non-recourse net terms financing to government-backed SBA loans, these alternatives deliver the capital businesses need without the high costs and complex fee structures often associated with traditional alternative lenders.

Key Takeaways

Non-recourse financing eliminates risk:Resolve offers non-recourse financing on approved invoices (subject to standard exclusions such as fraud or disputes), with advances available up to 100% in some cases
Transparent pricing model: Unlike many alternative lenders with hidden fees, Resolve offers flat fee structures (around 2.61%–3.5% on 30-day terms, as of [Month Year]) and fees may vary by customer profile and payment method
AI-powered underwriting accelerates decisions: Modern platforms deliver credit decisions in seconds compared to days or weeks with traditional lenders, with instant approvals available for purchases up to $25,000 (as of [Month Year])
Embedded payments transform B2B commerce: Resolve's platform integrates directly into existing ecommerce and accounting systems, offering net terms as working capital rather than traditional debt
Addressing the funding gap: With big bank approval rates hovering in the low-to-mid teens in recent years, alternatives like Resolve serve the underserved mid-market with accessible solutions
Speed without sacrificing relationships: Unlike traditional factoring, Resolve maintains merchant control over customer relationships while handling credit assessment, collections, and payment risk

1. Resolve — Modern B2B Net Terms Without the Risk

Resolve stands out as the premier National Funding alternative by transforming how B2B businesses access working capital through embedded net terms financing. Rather than offering traditional loans or merchant cash advances with daily repayment obligations, Resolve enables businesses to offer their customers net 30, 60, or 90-day payment terms while receiving payment upfront—eliminating cash flow gaps without creating debt obligations.

Key Features:

100% non-recourse financing with zero merchant risk—all cash advances are yours to keep regardless of customer payment outcomes
AI-powered credit decisions in seconds using proprietary models that evaluate thousands of buyer data points
Net terms options tailored to each customer's creditworthiness
Advance payments up to 100% on approved invoices, typically within 24 hours
Transparent fee structure ranging from around 2.61% to 3.5% on 30-day net terms
Seamless integrations with QuickBooks, Shopify, BigCommerce, Magento, and other platforms
White-label payment portal accepting ACH, wire, credit card, and check payments

B2B-Focused Value Proposition:

Unlike National Funding's revenue-based financing model that requires daily or weekly repayments regardless of cash flow cycles, Resolve's approach aligns with natural B2B commerce patterns. The platform serves as your "credit team on tap," handling the entire credit-to-cash workflow from initial buyer assessment through collections management.

Resolve's experts—formerly of Amazon, PayPal, and Fortune 500 firms—deliver deeper credit insights than traditional bureaus, requiring only a customer's business name and address to initiate credit checks. This streamlined process enables businesses to offer net terms without the administrative burden or risk traditionally associated with extending credit.

Recent case studies demonstrate significant impact: businesses report around 30-60% faster payment cycles, around 50% less time managing receivables, and approximately 9x faster credit checks compared to manual processes. The platform's AI-driven automation reduces days sales outstanding (DSO) while enhancing buyer loyalty through flexible payment options.

For ecommerce businesses specifically, Resolve's net terms checkout extension increases conversion rates and average order values, with instant approvals available for purchases up to $25,000. The solution integrates directly into existing checkout flows, providing buyers with the option to apply for net terms at the point of purchase without redirecting to external applications.

2. SBA Loans — Government-Backed Financing

The Small Business Administration (SBA) offers government-guaranteed loan programs that provide competitive rates and longer terms than most alternative lenders. With SBA lending volumes increasing significantly year-over-year and improved guarantee percentages, these programs have become more accessible to qualified businesses.

Program Options:

7(a) Loans: Up to $5 million for various business purposes with terms up to 25 years
504 Loans: Typically 10-, 20-, or 25-year terms for fixed assets (e.g., owner-occupied real estate, equipment)
Microloans: Up to $50,000 for startups and small businesses with shorter terms

Qualification Requirements:

Typical lender overlays may include 2+ years in business
minimum revenue thresholds
good personal credit
Sufficient collateral and personal guarantees
Business must meet SBA size standards

While SBA loans offer attractive rates and terms, the application process can take 30-90 days, significantly longer than the 24-72 hour funding timeline of alternative lenders. Additionally, around 14-15% of small business loan applications are approved by big banks, which typically serve as SBA lending partners.

3. Peer-to-Peer Lending Platforms

Peer-to-peer (P2P) lending platforms like Funding Circle and Kiva U.S. connect businesses with individual or institutional investors, bypassing traditional banking channels. These platforms have gained traction by offering faster approval processes and more flexible requirements than banks.

Platform Characteristics:

Loan amounts typically range from $5,000 to $500,000
Terms usually 1-5 years with fixed monthly payments
Interest rates vary widely based on creditworthiness (8-36% APR)
Funding typically available within 7-14 days
Application process conducted entirely online

P2P platforms use technology to streamline underwriting but still rely heavily on traditional credit metrics. While faster than banks, they're generally slower than specialized B2B payment platforms like Resolve. Additionally, P2P loans create debt obligations that must be repaid regardless of customer payment cycles, unlike non-recourse net terms financing.

4. Business Grants — Non-Repayable Capital

Business grants provide non-dilutive, non-repayable funding from government agencies, foundations, and corporations. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs together provide over $4 billion annually to qualifying small businesses engaged in research and development.

Grant Opportunities:

Federal grants: Available through various government agencies for specific purposes
State and local grants: Often tied to economic development initiatives
Industry-specific grants: Targeted funding for sectors like agriculture, technology, or manufacturing
Diversity-focused grants: Programs supporting women, minority, and veteran-owned businesses

While grants represent ideal funding (no repayment required), they involve highly competitive application processes with success rates often below 10%. Additionally, most grants have strict usage requirements and reporting obligations. The application timeline can extend 3-6 months, making grants unsuitable for immediate working capital needs.

5. Traditional Bank Financing

Traditional banks offer term loans, lines of credit, and business credit cards with competitive rates for qualified borrowers. According to the Federal Reserve's data, banks significantly tightened standards during 2022–2023; conditions have since fluctuated.

Bank Financing Options:

Term loans: Lump sum with fixed repayment schedule, typically 1-10 years
Lines of credit: Revolving credit up to approved limit with interest-only payments on used amounts
Business credit cards: Short-term financing with rewards and purchase protections
Equipment financing: Secured loans specifically for equipment purchases

Bank financing typically requires excellent credit (670-700+), substantial revenue ($500,000+ annually), and 2+ years in business. The application process involves extensive documentation and can take 30-90 days. For businesses that qualify, bank financing offers the most cost-effective option, but the stringent requirements exclude many small businesses—around 44% of SMBs don't even apply for loans because they expect rejection.

6. Invoice Factoring — Traditional Receivables Financing

Invoice factoring involves selling outstanding invoices to a third party (factor) at a discount to receive immediate cash. Traditional factoring companies typically advance 80-95% of invoice value upfront, with the remaining balance (minus fees) paid when the customer pays the invoice.

Factoring Structure:

Recourse vs. non-recourse: Recourse factoring requires repayment if customers don't pay; non-recourse shifts default risk to the factor
Notification vs. non-notification: Notification factoring informs customers of the arrangement; non-notification maintains merchant control
Fees: Typically 1-6% of invoice value, plus potential monthly maintenance fees
Advance rates: Usually 80-95% of invoice value
Minimum volume requirements: Many factors require monthly minimums ($5,000-$10,000+)

Traditional factoring often requires notification to customers, potentially damaging business relationships. Additionally, many factoring agreements include hidden fees, monthly minimums, and long-term contracts with early termination penalties. This contrasts with Resolve's modern approach, which offers non-recourse financing with transparent flat fees, no minimums, and white-label customer experience that preserves business relationships.

7. Startup Financing Options

For early-stage businesses without revenue history, specialized financing options exist despite the challenges of securing traditional funding. These alternatives recognize that new businesses may have strong potential but lack the financial track record required by conventional lenders.

Early-Stage Options:

Personal credit-based lending: Using founder's personal credit to secure business funding
Collateral-based loans: Using personal or business assets as security
Microlenders: Nonprofit organizations offering small loans with technical assistance
Equipment financing: Secured lending specifically for essential business equipment
Crowdfunding: Raising small amounts from many individuals through online platforms

These options typically come with higher costs and more stringent personal guarantees than financing available to established businesses. However, they provide crucial startup capital when other options aren't available. As businesses establish revenue and customer relationships, they can transition to more favorable options like Resolve's net terms platform, which evaluates customer creditworthiness rather than business history.

Making the Right Choice for Your Business

Choosing the right National Funding alternative depends on your business model, customer base, and specific financing needs:

For B2B Businesses with Established Customers: Resolve's net terms platform offers the most strategic advantage by transforming accounts receivable into immediate working capital without creating debt obligations. The non-recourse structure eliminates risk while the embedded payment experience enhances customer relationships.

For Businesses Needing General Working Capital: SBA loans provide the most cost-effective option if you meet qualification requirements, while P2P platforms offer faster access with moderate rates for creditworthy businesses.

For Early-Stage Companies: Startup-specific financing options may be necessary initially, but businesses should plan to transition to customer-focused financing like Resolve as they establish B2B relationships.

Cost Comparison Framework: When evaluating alternatives, consider the total cost of capital rather than just headline rates. Resolve's transparent fee structure (around 2.61%-3.5% on 30-day terms) provides predictable costs, while traditional alternative lenders often obscure true costs through factor rates and hidden fees. Additionally, consider the strategic value of solutions that enhance customer relationships versus those that create repayment pressure regardless of business cycles.

The embedded lending market is expected to grow significantly by 2031, reflecting the shift toward financing solutions that integrate seamlessly into business workflows rather than operating as separate financial products. This trend favors platforms like Resolve that embed financing directly into the B2B commerce experience.

Frequently Asked Questions

What is the best alternative to National Funding for B2B businesses?

For B2B businesses specifically, Resolve offers the most strategic alternative by providing non-recourse net terms financing that eliminates risk while enhancing customer relationships. Unlike National Funding's revenue-based financing that requires daily repayments regardless of cash flow, Resolve advances up to 100% on approved invoices while allowing customers to pay on net 30, 60, or 90-day terms. This approach aligns with natural B2B commerce patterns and transforms accounts receivable into immediate working capital without creating debt obligations.

How do SBA loans compare to alternative small business financing options?

SBA loans offer the most competitive rates and longest terms but require extensive qualification criteria and lengthy approval processes (30-90 days). Around 14-15% of small business loan applications are approved by big banks, which typically serve as SBA lending partners. Alternative financing options like Resolve provide faster funding (24-72 hours) with more accessible requirements, evaluating customer creditworthiness rather than business financials. While SBA loans may have lower nominal rates, the strategic benefits of embedded net terms financing—enhanced customer relationships, no debt obligations, and alignment with B2B payment cycles—often provide greater overall value.

Can I get business financing with no revenue or limited credit history?

Traditional lenders typically require established revenue and credit history, but alternatives exist for early-stage businesses. Personal credit-based lending, collateral-backed loans, and microlenders can provide initial funding. However, once a business establishes B2B customer relationships, platforms like Resolve become viable by evaluating customer creditworthiness rather than business history. Resolve requires only a customer's business name and address to initiate credit checks, making it accessible even for newer businesses with qualified buyers.

What is the difference between invoice factoring and Resolve's net terms financing?

Traditional invoice factoring often requires notifying customers of the arrangement, potentially damaging business relationships, and may include hidden fees, monthly minimums, and recourse provisions that shift default risk back to the merchant. Resolve's modern alternative to factoring offers 100% non-recourse financing with transparent flat fees (around 2.61%-3.5% on 30-day terms), no minimums, and white-label customer experience that preserves business relationships. Additionally, Resolve provides instant credit decisions and advances up to 100% on approved invoices, compared to typical factoring advance rates of 80-95%.

How do modern B2B payment platforms provide working capital?

Modern B2B payment platforms like Resolve transform accounts receivable into immediate working capital by advancing payment on approved invoices while allowing customers to pay on extended terms. This approach eliminates the cash flow gap between invoicing and payment without creating debt obligations. The platform handles credit assessment, payment processing, and collections management, enabling businesses to offer net terms while protecting cash flow. With AI-powered automation, these platforms reduce day sales outstanding by around 30-60% while enhancing buyer loyalty through flexible payment options.

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.