SBG Funding Alternatives: Modern Solutions for B2B Working Capital

While SBG Funding delivers traditional business loans with speeds under 24 hours, B2B companies increasingly seek alternatives that offer non-recourse financing, accounts receivable automation, and embedded net terms without assuming debt obligations. From Resolve's AI-powered platform to specialized invoice financing solutions, these alternatives provide risk-free working capital while enhancing customer relationships rather than creating lender dependencies.

Key Takeaways

Non-recourse financing eliminates merchant risk: Resolve provides non-recourse net terms financing with advance payments up to 100% on approved invoices, transferring buyer default risk to the platform
B2B payment infrastructure vs. traditional lending: ResolvePay serves as a comprehensive B2B payment platform with AR automation, while SBG Funding operates as a traditional lender providing working capital loans
Transparent transaction pricing: Resolve charges flat-rate fees (2.61-3.5%) per transaction rather than complex interest calculations, with costs predictable upfront
AR automation reduces overhead: Modern platforms automate invoicing, collections, and reconciliation, reducing accounts receivable workload significantly
Real-time credit decisions: AI-powered underwriting delivers buyer credit approvals in seconds to hours versus traditional manual processes
Complementary solutions: Many businesses use both ResolvePay for customer payment terms and traditional lenders like SBG for lump-sum capital needs

1. Resolve — The Complete B2B Payment Platform with Non-Recourse Financing

The B2B financing landscape has evolved significantly in recent years, with companies prioritizing risk-free working capital solutions that enhance customer relationships rather than creating debt obligations. While SBG Funding excels at providing traditional business loans with 24-hour funding and flexible credit requirements, modern alternatives offer fundamentally different value propositions focused on payment infrastructure rather than borrowed capital.

Market analysis indicates the embedded B2B buy-now-pay-later market is experiencing substantial growth, driven by businesses seeking to offer net terms to customers while protecting their cash flow. This has created sophisticated alternatives that often surpass traditional lenders in specific B2B payment scenarios.

Resolve stands out as the premier SBG Funding alternative by addressing the fundamental difference between borrowing capital and managing customer payments. While SBG provides traditional loans that create debt obligations, Resolve delivers a comprehensive B2B payment infrastructure that automates accounts receivable, extends net terms to customers, and provides non-recourse financing without creating lender dependencies.

Key Features:

100% non-recourse financing with zero merchant risk on approved invoices
AI-powered AR automation streamlining invoicing, collections, and reconciliation
Net 30, 60, or 90-day terms extended directly to B2B customers
Advance payments of up to 100% within 24 hours on approved invoices
Real-time business credit checks requiring only company name and address
Branded payment portal accepting ACH, wire, credit card, and check
Native integrations with QuickBooks, NetSuite, Shopify, BigCommerce, and more

Transparent Pricing Structure:

Fees range from 2.61% to 3.5% on 30-day net terms based on advance percentage and risk
90% advance example: 3.15% fee on $1,000 invoice = $31.50
100% advance option: 3.5% flat fee
No monthly minimums, setup fees, or hidden charges
Pay only when using net terms—no costs for COD or immediate payment transactions

The platform's comprehensive approach transforms B2B payment management from a manual, risky process into an automated, risk-free revenue driver. Resolve's proprietary AI models evaluate thousands of buyer data points to generate dynamic credit decisions, while automated workflows handle payment reminders, collections, and reconciliation. This eliminates the administrative burden of traditional AR management while protecting cash flow through advance payments.

Unlike SBG Funding's recourse loan model where businesses remain fully liable for repayment regardless of customer outcomes, Resolve's non-recourse structure transfers buyer default risk to the platform. This fundamental difference enables businesses to offer generous payment terms to customers without fear of bad debt, directly supporting sales growth and customer retention.

The platform currently serves over 12,000 businesses with backing from Initialized Capital and Commerce Ventures through over $85M in funding, including a $25M Series A in 2021. Recent customer success stories demonstrate significant impact: businesses report around 50% reduction in AR work, up to 40% increase in order value when offering net terms, and complete elimination of bad debt through non-recourse protection.

2. FundThrough — Invoice Financing Specialist

FundThrough represents a focused alternative for businesses specifically seeking invoice financing rather than general working capital loans. Since 2013, the platform has processed over $6 billion in B2B invoices, providing advance payments against outstanding receivables.

Platform Capabilities:

Advance payments up to 90% on approved invoices
Funding decisions within 24 hours
Integration with QuickBooks, Xero, and Sage
Focus exclusively on invoice-based financing
No personal guarantees required for qualified businesses
Automated application process through accounting software

Cost Structure:

Fees typically range from 0.5% to 2.5% per 30 days
Effective annual rates vary based on payment terms
Additional fees may apply for expedited funding
Pricing based on customer creditworthiness and invoice age

FundThrough's specialized focus makes it suitable for businesses with established invoicing processes seeking liquidity against existing receivables. FundThrough specializes primarily in invoice financing rather than comprehensive payment infrastructure that includes full AR automation and customer relationship management features like Resolve provides.

The platform serves as a middle ground between traditional factoring and modern B2B payment platforms, offering invoice financing for businesses specifically needing to convert existing invoices to cash without managing customer payments or extending new credit terms.

3. Bluevine — Business Lines of Credit

Bluevine has established itself as a leading provider of business lines of credit for small to mid-sized companies. Since 2013, the platform has provided over $10 billion in financing to more than 80,000 businesses, focusing on flexible credit facilities rather than payment infrastructure.

Service Offerings:

Revolving lines of credit up to $250,000
Term loans up to $250,000
Invoice factoring with advances up to 90%
6-month to 2-year repayment terms
Next-day funding for approved applications
Integration with QuickBooks and Square

Pricing Model:

Lines of credit: Starting at 3.9% monthly interest
Term loans: Fixed fees typically 7-30% of loan amount
Invoice factoring: typically 0.25–2.5% weekly fees
No prepayment penalties or hidden fees

Bluevine's strength lies in providing flexible access to working capital for general business purposes, similar to SBG Funding's approach but with a stronger focus on smaller loan amounts and simpler application processes. However, like SBG Funding, Bluevine creates debt obligations rather than providing payment infrastructure solutions.

For businesses needing unrestricted working capital for operational expenses, inventory purchases, or expansion costs, Bluevine offers a streamlined alternative to traditional bank financing. However, companies specifically seeking to enhance their B2B payment processes, extend net terms to customers, or automate accounts receivable will find Resolve's platform more aligned with their needs.

4. Fundbox — Short-Term Credit Lines

Fundbox occupies a distinct niche providing short-term credit lines specifically designed for small businesses that may not qualify for traditional financing. Since 2013, the platform has provided over $6 billion in funding to 500,000+ businesses, focusing on accessibility over comprehensive payment solutions.

Key Characteristics:

Credit lines from $1,000 to $150,000
Instant decisions with next-day funding
12, 24, or 52-week repayment terms
No personal guarantee required for qualified applicants
Integration with QuickBooks, Xero, and FreshBooks
Mobile app for account management

Cost Structure:

Fees assessed per draw as total percentage of amount borrowed
Typical starting rates around 4.66% for 12-week plans
Effective APR can exceed 35%
$50 late payment fees plus NSF charges

Fundbox's primary advantage is accessibility for businesses with lower credit scores or limited operating history. The platform's streamlined application process and rapid approval make it suitable for emergency working capital needs. However, the higher cost structure and debt-based model create different financial considerations compared to Resolve's transaction-based, non-recourse approach.

For small B2B companies needing immediate working capital and able to manage the associated costs, Fundbox offers a viable alternative. However, businesses with established B2B relationships seeking to enhance their payment processes while protecting cash flow will find Resolve's platform offers a different approach focused on payment infrastructure rather than borrowed capital.

5. Traditional Bank Lines of Credit

Traditional banking institutions continue to offer business lines of credit as an alternative to both SBG Funding and modern fintech platforms. While requiring more extensive documentation and longer approval processes, bank lines of credit typically offer lower interest rates for qualified borrowers.

Bank Line Characteristics:

Credit limits typically $10,000 to $500,000+
Interest rates starting around 7–12% APR for qualified borrowers
Secured and unsecured options available
1-5 year revolving credit periods
Extensive documentation requirements
Personal guarantees often required

Qualification Requirements:

Minimum 2 years in business
$100,000+ annual revenue
680+ personal credit score
Strong business financial statements
Established banking relationships

Traditional bank lines of credit serve businesses seeking the lowest possible cost of capital for general working capital needs. However, the lengthy application process (often 4-8 weeks), stringent qualification requirements, and debt-based structure make them different from solutions focused on B2B payment processes.

For established businesses with strong credit profiles and patient capital needs, bank lines of credit remain a cost-effective option for borrowed capital. However, companies requiring rapid implementation, non-recourse financing, or comprehensive payment infrastructure will find modern platforms offer different capabilities aligned with B2B payment optimization.

6. OnDeck — Alternative Lending Platform

OnDeck represents another established alternative lending platform providing business loans and lines of credit to small and mid-sized companies. Since 2007, the company has originated over $15 billion in loans, focusing on technology-driven underwriting and rapid funding.

Platform Features:

Term loans from $5,000 to $250,000
Lines of credit from $6,000 to $250,000
3-36 month repayment terms
Same-day approval and next-day funding
Integration with QuickBooks and Xero
24/7 customer support

Pricing Structure:

Term loans: Factor rates from 1.10 to 1.50
Lines of credit: Starting at 3.5% monthly interest
Origination fees from 0-5%
No prepayment penalties

OnDeck's strength lies in providing flexible financing options with faster approval than traditional banks while maintaining more established lending practices than newer fintech platforms. The company's extensive operating history and public trading status provide stability and regulatory compliance.

However, like SBG Funding and other traditional lenders, OnDeck creates debt obligations rather than providing payment infrastructure solutions. For businesses specifically seeking to enhance their B2B payment processes, extend net terms to customers, or automate accounts receivable, Resolve's comprehensive platform offers fundamentally different capabilities.

Choosing the Right Alternative for Your Business

The choice between SBG Funding alternatives depends fundamentally on whether you need borrowed capital or payment infrastructure:

Choose Resolve when you need:

To extend net terms to B2B customers while getting paid upfront
Automated AR management with AI-powered workflows
Non-recourse financing that transfers buyer default risk
Embedded checkout financing for B2B ecommerce
Transparent transaction-based pricing without debt obligations

Choose traditional lenders (SBG Funding, Bluevine, OnDeck) when you need:

Lump-sum working capital for general business purposes
Equipment financing for specific asset purchases
SBA loan access for government-backed financing
Unrestricted use of funds for any business expense
Traditional lending relationships with established institutions

Cost Comparison for $100,000 in B2B Sales:

Resolve approach: $3,150 fee (3.15%) for 30-day net terms with 90% advance and non-recourse protection
SBG Funding approach: Estimated 20–30% APR depending on risk profile with full recourse liability
Fundbox approach: Estimated $4,660+ in fees (4.66%+) with higher effective APR and debt obligation

The fundamental difference lies in Resolve providing payment infrastructure that enhances customer relationships while protecting cash flow, versus traditional lenders creating debt obligations that require repayment regardless of business outcomes.

For B2B companies seeking to grow sales through net terms while eliminating AR overhead and bad debt risk, Resolve's platform delivers capabilities that traditional lenders cannot match. The platform's combination of non-recourse financing, AR automation, and transparent pricing makes it a comprehensive alternative for businesses focused on B2B payment optimization rather than borrowed capital.

Frequently Asked Questions

What makes Resolve a better alternative to SBG Funding for B2B businesses?

Resolve and SBG Funding serve fundamentally different needs: Resolve provides a comprehensive B2B payment platform with non-recourse financing, AR automation, and net terms extension, while SBG Funding offers traditional working capital loans. For B2B businesses seeking to enhance customer payment experiences while protecting cash flow, Resolve's infrastructure approach eliminates the debt obligations and recourse liability inherent in SBG's lending model. Resolve transfers buyer default risk to the platform through non-recourse financing, enabling businesses to offer generous payment terms without fear of bad debt.

Can I get business funding with no revenue and bad credit through these alternatives?

Most alternatives, including Resolve and traditional lenders like SBG Funding, require established business operations and revenue streams. Resolve specifically requires existing B2B customers and invoices to provide financing, as it's based on customer payment terms rather than direct lending. SBG Funding typically requires $400,000+ annual revenue and accepts credit scores as low as 600, but still requires established business operations. For pre-revenue businesses, traditional business loans and B2B payment platforms are generally not suitable options; alternative funding sources like grants, equity investment, or personal financing would be more appropriate.

How do non-recourse funding options protect my business?

Non-recourse financing protects businesses by transferring buyer default risk to the funding platform. With Resolve's model, if an approved customer fails to pay their invoice, Resolve assumes the loss rather than pursuing the merchant for repayment. This eliminates bad debt write-offs and protects business credit scores from customer payment failures. Unlike traditional lenders like SBG Funding that maintain full recourse against borrowers regardless of customer outcomes, non-recourse platforms enable businesses to offer generous payment terms to customers without financial risk, directly supporting sales growth and customer retention.

What's the difference between invoice factoring and Resolve's platform?

Traditional invoice factoring requires selling invoices at steep discounts (often 5-20% fees) and typically involves customer notification that can damage relationships. Resolve's platform maintains merchant control over customer relationships while providing non-recourse financing at lower costs (2.61-3.5% fees). Additionally, Resolve offers comprehensive AR automation, payment processing, and credit management features that traditional factoring companies don't provide. The platform's white-label approach preserves brand relationships while eliminating collections burden and bad debt risk.

How quickly can I get approved for alternative business funding?

Approval speeds vary significantly by platform and funding type. Resolve delivers real-time to 24-hour credit decisions on B2B buyers using AI-powered underwriting, with advance payments within 1-2 business days. SBG Funding offers under 24-hour approval with same-day funding available for qualified applicants. Traditional bank lines of credit typically require 4-8 weeks for approval and funding. The fastest implementations come from platforms with pre-built integrations and automated underwriting processes, with Resolve's ecommerce integrations enabling same-day setup for platforms like Shopify and BigCommerce.

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.