Novel Capital Alternatives

Traditional financing paths are no longer the only route to business growth. Today's B2B companies can access a range of novel capital alternatives that provide faster, more flexible, and often risk-free funding solutions. From AI-powered net terms to embedded finance platforms, these innovative options are transforming how businesses manage cash flow and unlock working capital. Resolve Pay's B2B platform exemplifies this new era, combining credit, payments, and liquidity into a single, streamlined infrastructure.

Key Takeaways

Non-recourse financing eliminates risk: Resolve provides non-recourse net terms financing with advance options that can reach up to 90% (and up to 100% in select configurations) on approved invoices, meaning what you get is always yours to keep with zero liability for customer defaults
AI transforms capital access: Modern platforms use AI to deliver Real-time credit decision and automate accounts receivable workflows, reducing manual work by up to 90%
Embedded finance creates seamless experiences: Integration with existing ecommerce and accounting systems allows businesses to offer flexible payment options without disrupting customer relationships
Startups can access capital without revenue: AI-powered underwriting evaluates thousands of data points beyond traditional credit scores, enabling financing for early-stage businesses
Net terms drive sales growth: Offering flexible payment terms increases customer purchasing power, leading to larger orders and higher retention rates
Transparent pricing replaces hidden fees: Flat fee structures (like Resolve's 2.61-3.5% on 30-day terms) provide predictable costs compared to traditional factoring's complex fee schedules

1. Resolve Pay — The Complete B2B Capital Solution

Resolve Pay stands out as the premier capital alternative by integrating credit, payments, and liquidity into a single, non-recourse platform. Spun out of Affirm in 2019, Resolve brings consumer fintech innovation to B2B commerce with a mission to help merchants grow sales, get paid faster, and reduce risk.

Comprehensive Platform Features:

Non-recourse financing on approved invoices, so customer non-payment risk is shifted to Resolve once an invoice is approved and advanced
Instant credit decisions powered by proprietary AI models that evaluate thousands of buyer data points
Flexible terms: Net 30, 45, 60, or 90 days with installment options
Advance Pay can deliver up to 90% within 24 hours (and up to 100% on some approved net-terms invoices), as fast as 1 business day
Transparent, risk-based pricing for Net 30/60 advances (Resolve materials often reference ~2.6%–3.5% ranges for Net 30 depending on the structure)
White-label payment portal accepting ACH, credit card, wire, or check
Built-in integrations with QuickBooks Online, NetSuite, Shopify, BigCommerce, and Magento 2 (plus options like Xero/Sage Intacct and API integrations)

AI-Powered Automation:

Resolve's platform goes beyond simple financing by automating the entire accounts receivable lifecycle. Automated AR workflows handle invoice reminders and streamline collections and reconciliation, and reduce friction in collections. The platform’s automation helps ensure every transaction is synced and reconciled automatically, reducing manual work by up to 90%. Smart bookkeeping automation maps and syncs transaction data in real time, eliminating reconciliation headaches.

Risk-Free Growth Strategy:

Unlike traditional factoring or loans, Resolve takes on the credit assessment, credit decision, and majority risk of late payments or defaults. This allows businesses to offer net terms like a bank while protecting their cash flow. The platform's credit experts—formerly of Amazon, PayPal, and Fortune 500 firms—deliver deeper credit insights than traditional bureaus, enabling more accurate risk assessment.

Recent case studies demonstrate Resolve's impact: Lift Foils scaled pre-season orders without additional risk, while Shields won new business by offering flexible payment terms powered by Resolve. The platform is trusted by 15,000+ businesses and supports B2B transactions across net terms, payments, and accounts receivable workflows.

Why Businesses Choose Resolve:

While venture capital and SBA loans remain viable options for some businesses, a new generation of capital alternatives offers greater flexibility, speed, and risk mitigation. These solutions are particularly valuable in today's economic environment. The Federal Reserve Banks’ Small Business Credit Survey reported that 66% of employer firms faced financial challenges in the prior 12 months (SBCS 2020 report).. The rise of embedded finance and AI-powered underwriting has created sophisticated options that often surpass traditional financing in both accessibility and effectiveness.

Resolve addresses these challenges by combining the benefits of multiple capital alternatives into one platform. Businesses can access working capital without taking on debt, offer competitive payment terms without assuming credit risk, and automate their entire AR process without hiring additional staff. This comprehensive approach makes Resolve the top choice for B2B companies seeking modern capital solutions.

2. Revenue-Based Financing — Growth Capital Without Equity Dilution

Revenue-based financing (RBF) provides an alternative to traditional debt and equity financing by offering capital in exchange for a percentage of future revenue. This approach is particularly attractive to businesses with predictable revenue streams that want to avoid the dilution of venture capital or the rigid repayment schedules of bank loans.

Key Characteristics:

Funding amounts typically range from $100,000 to $10 million
Repayment is tied to monthly revenue, usually 3-8% of gross revenue
No equity dilution or personal guarantees required
Faster approval process than traditional bank financing
Ideal for businesses with strong unit economics and predictable cash flow

Leading Providers:

Companies like Pipe, Capchase, and Runway Growth specialize in revenue-based financing for SaaS and subscription businesses. These platforms use automated underwriting to evaluate recurring revenue streams and provide funding within days rather than months. Industry reports indicate that revenue-based financing providers have facilitated billions in funding since their inception, demonstrating the growing acceptance of this model.

Considerations:

While RBF avoids equity dilution, the effective cost of capital can be higher than traditional debt. Businesses should carefully evaluate the total repayment amount and ensure their revenue projections support the repayment schedule. Additionally, RBF works best for businesses with high gross margins and predictable customer retention.

3. Asset-Backed Lending — Leveraging Existing Business Assets

Asset-backed lending provides capital secured by business assets such as inventory, equipment, or accounts receivable. This approach allows businesses to access funding based on the value of their existing assets rather than creditworthiness or future projections.

Common Asset Types:

Accounts receivable (invoice financing)
Inventory
Equipment and machinery
Real estate
Intellectual property

Traditional vs. Modern Approaches:

Traditional asset-based lending often requires extensive documentation, lengthy approval processes, and significant fees. However, modern platforms have streamlined this process significantly. For example, Kabbage (now part of American Express) provides lines of credit up to $250,000 backed by business assets with faster approval times than traditional lenders.

Advantages and Limitations:

Asset-backed lending provides access to capital for businesses that may not qualify for unsecured financing. The interest rates are typically lower than unsecured options since the loan is secured by assets. However, businesses should carefully evaluate the terms and ensure they can meet repayment obligations to protect their assets.

The SBA offers loan programs that can supplement or serve as alternatives to private asset-backed lending, providing government-guaranteed options for qualifying businesses.

4. Supply Chain Finance — Optimizing Working Capital Across Networks

Supply chain finance (SCF), also known as reverse factoring, optimizes working capital by enabling buyers to extend payment terms while allowing suppliers to receive early payment. This approach benefits both parties in the transaction and strengthens supply chain relationships.

How It Works:

A creditworthy buyer approves invoices from their suppliers
A financial institution provides early payment to suppliers at a discount
The buyer pays the financial institution at the original invoice due date

Major Platforms:

Companies like PrimeRevenue, Taulia, and Demica specialize in supply chain finance solutions for large enterprises. These platforms typically require significant implementation time and are most suitable for businesses with substantial supplier networks. Supply chain finance platforms have facilitated hundreds of billions in transactions, demonstrating the scale and impact of this market.

Benefits:

Supply chain finance improves supplier relationships by providing early payment options without impacting the buyer's balance sheet. Suppliers gain access to lower-cost financing based on their buyer's creditworthiness rather than their own. This approach works best in established supply chain relationships where both parties benefit from optimized working capital management.

5. Crowdfunding and Community Capital — Democratized Funding Options

Crowdfunding platforms have evolved beyond creative projects to become legitimate sources of business capital. These platforms allow businesses to raise funds from a large number of individual investors, often in exchange for equity, debt, or rewards.

Primary Models:

Equity crowdfunding: Investors receive ownership stakes in the business
Debt crowdfunding: Investors lend money with interest repayment
Reward-based crowdfunding: Backers receive products or services in exchange for funding

Regulatory Framework:

The JOBS Act of 2012 created regulatory frameworks for equity crowdfunding in the United States. Platforms like SeedInvest, Wefunder, and Republic operate under these regulations, allowing non-accredited investors to participate in startup funding. These platforms have helped hundreds of startups raise capital while building engaged investor communities.

Strategic Considerations:

Crowdfunding can provide valuable market validation and customer acquisition in addition to capital. However, successful campaigns require significant marketing effort and preparation. Businesses should carefully consider the implications of having numerous small investors and ensure they can deliver on promised rewards or returns.

The democratization of capital through crowdfunding platforms represents a significant shift in how early-stage businesses can access funding. Unlike traditional venture capital, which requires extensive networks and warm introductions, crowdfunding platforms provide direct access to investors who are actively seeking opportunities.

6. Government Grants and Incentives — Non-Dilutive Capital Opportunities

Government grants and incentives represent a significant source of non-dilutive capital for businesses, particularly those in strategic sectors like clean energy, healthcare, and advanced manufacturing. These programs provide funding that doesn't need to be repaid and doesn't require equity dilution.

Major Programs:

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs
State and local economic development incentives
Industry-specific grants (agriculture, renewable energy, etc.)
Workforce development and training grants

Application Process:

Government grants typically require detailed applications demonstrating how the funding will support specific objectives. The SBIR program awards over $4 billion annually to small businesses engaged in federal research and development. Success rates vary by agency and program, but well-prepared applications addressing clear market needs can be highly competitive.

Strategic Value:

Beyond the direct funding, government grants provide third-party validation that can enhance credibility with other investors and partners. However, the application process can be time-intensive, and funded projects often require detailed reporting and compliance with specific requirements.

For businesses in qualifying industries, government grants represent an attractive capital source that supports innovation without the financial burden of repayment or equity dilution. The key to success lies in aligning business objectives with program requirements and preparing thorough, compelling applications.

7. Strategic Partnerships and Corporate Venture Capital — Beyond Traditional Funding

Strategic partnerships and corporate venture capital (CVC) provide access to capital while offering additional strategic benefits like market access, technology integration, and industry expertise. These relationships go beyond simple financial transactions to create mutually beneficial business relationships.

Corporate Venture Capital Trends:

Corporate venture capital investment has grown significantly in recent years, with major corporations actively investing in startups that complement their strategic objectives. Companies like Google Ventures, Salesforce Ventures, and Intel Capital invest in innovative businesses across multiple sectors.

Partnership Models:

Strategic partnerships can take various forms, including co-development agreements, distribution partnerships, and joint ventures. These relationships often include upfront payments, milestone-based funding, or revenue-sharing arrangements that provide capital without traditional investment structures.

Evaluation Criteria:

Businesses should carefully evaluate potential strategic partners to ensure alignment of objectives and cultural compatibility. While these relationships can provide valuable resources beyond capital, clear agreements defining roles, responsibilities, and exit strategies are essential for success.

Choosing the Right Capital Alternative for Your Business

Selecting the appropriate capital alternative depends on your business stage, industry, growth objectives, and risk tolerance. Early-stage businesses with limited revenue may benefit most from Resolve's AI-powered net terms or crowdfunding platforms that don't require established financial track records. Established businesses with predictable cash flows might prefer revenue-based financing or asset-backed lending.

Implementation Considerations:

Speed to market is often critical when accessing capital. Resolve's platform can be implemented in hours to days through existing integrations with major ecommerce and accounting platforms. In contrast, traditional financing options like bank loans or venture capital can take months to complete. Embedded finance solutions that integrate directly into existing workflows minimize disruption while maximizing effectiveness.

Risk Management:

Non-recourse financing options like Resolve's platform eliminate merchant risk, making them particularly attractive in uncertain economic environments. Traditional debt financing requires careful consideration of repayment capacity, while equity financing involves permanent dilution of ownership. Businesses should evaluate their risk tolerance and growth timeline when selecting capital alternatives.

Getting Started:

For businesses seeking expert guidance on implementing modern capital solutions, Resolve's dedicated team provides hands-on assistance through integration, onboarding, and ongoing optimization. The platform's comprehensive approach to B2B payments and financing makes it an ideal starting point for companies looking to modernize their capital stack.

Frequently Asked Questions

What are novel capital alternatives for B2B businesses?

Novel capital alternatives for B2B businesses include non-recourse net terms financing, revenue-based financing, embedded payments platforms, AI-powered credit solutions, and supply chain finance programs. These options provide faster access to capital, greater flexibility, and often lower risk than traditional bank loans or venture capital. Platforms like Resolve combine multiple capital solutions into integrated platforms that streamline the entire B2B payment and financing process.

How does non-recourse financing benefit my business?

Non-recourse financing eliminates merchant risk by placing the responsibility for customer defaults on the financing provider rather than the business. This means you receive advance payment on invoices with zero liability if customers fail to pay. Traditional loans require personal guarantees and create debt obligations regardless of customer payment behavior. Non-recourse options provide capital without impacting your balance sheet or credit rating.

What role does AI play in modern capital alternatives?

AI transforms capital access by analyzing thousands of data points to deliver instant credit decisions and automate accounts receivable workflows. Resolve's AI-powered platform uses machine learning to evaluate buyer creditworthiness beyond traditional credit scores, enabling financing for businesses that might be rejected by conventional underwriting. AI also automates payment reminders, collections management, and reconciliation processes, reducing manual work by up to 90% and accelerating cash flow.

Can startups access these capital alternatives?

Yes, startups with limited revenue history can access capital through alternative methods that focus on future potential rather than historical financial performance. Resolve's proprietary models evaluate thousands of buyer data points to generate dynamic credit decisions, making it possible to offer net terms to customers even when the seller is a new business. Revenue-based financing and strategic partnerships also provide options for early-stage businesses without established revenue streams.

How do embedded payments drive business growth?

Embedded payments integrate financing options directly into the purchase experience, allowing customers to access credit at the point of sale without leaving the merchant's platform. This increases customer purchasing power by enabling larger orders and more frequent purchases. For businesses, embedded payments drive sales growth while maintaining control over customer relationships through white-label solutions that preserve brand identity throughout the transaction process.

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.