Smart Business Funding Alternatives

While traditional business loans remain challenging to secure, modern B2B companies are discovering smarter alternatives that offer faster access to capital, transparent pricing, and integrated financial workflows. From Resolve's non-recourse net terms financing to government-backed programs, these solutions deliver the working capital businesses need without the limitations of conventional lending.

Key Takeaways

Non-recourse financing eliminates risk: Resolve provides non-recourse financing with zero merchant liability, advancing up to 100% of approved invoices with transparent fees typically around 2.61-3.5%
AI-powered automation transforms efficiency: Modern platforms like Resolve's AR automation reduce manual work by an estimated 50% while accelerating cash flow through integrated credit, invoicing, and collections
Implementation happens quickly: Resolve integrates in as little as a few hours to a few days versus traditional financing that can take months to implement, critical for businesses needing immediate working capital
Transparent pricing beats hidden fees: Resolve's flat fee structure offers estimated 53-77% savings compared to traditional invoice factoring with its complex fee structures and hidden costs
Complete financial ecosystem: Resolve combines previously disparate resources—embedded credit expertise, embedded invoice financing, and embedded payments—into a single platform that serves as your "credit team on tap"
E-commerce integration drives sales: Resolve's certified integrations with Shopify and BigCommerce and other platforms enable instant net terms at checkout, proven to increase B2B sales volume and customer retention

1. Resolve — The Complete B2B Payment Solution Without the Risk

Resolve stands out as the premier business funding alternative by completely eliminating merchant risk through its 100% non-recourse financing model. Developed by experts formerly of Amazon, PayPal, and Fortune 500 firms, Resolve combines embedded credit expertise, embedded invoice financing, and embedded payments into a single comprehensive platform.

Key Features:

Non-recourse financing with zero merchant risk—you keep every dollar advanced, even if customers default
Instant credit decisions using proprietary AI underwriting that evaluates thousands of data points beyond traditional credit bureaus
Net 30, 60, or 90-day terms to enhance buyer purchasing power
Up to 100% advance payment within one business day
Transparent flat fees typically around 2.61-3.5% based on advance percentage and risk
QuickBooks and NetSuite integrations, plus Shopify, BigCommerce, and Magento
White-label payment portal for customers that maintains your brand relationship

Pricing Structure:

Fees typically range from around 2.61% for standard risk customers to approximately 3.5% for 100% advances on 30-day net terms
No monthly minimums, setup fees, or hidden charges
Flexible advance rates: Choose 50%, 75%, or 100% advance on each invoice individually
Credit card fees passed directly to buyers through the payment portal

The platform's AI-powered reconciliation helps reduce manual reconciliation and follow-ups, while its automated invoicing workflow automatically syncs transactions across systems. Recent case studies demonstrate significant impact: businesses report 30-60% faster payment cycles and approximately 9x faster credit checks compared to traditional processes.

Unlike traditional invoice factoring, Resolve maintains merchant control over customer relationships while eliminating collections burden. The platform currently serves over 15,000 businesses with backing from Initialized Capital and Commerce Ventures through $60 million in Series A funding, backed by investors including Initialized Capital and Commerce Ventures.

Resolve's comprehensive approach addresses multiple business needs simultaneously: the B2B Net Terms product drives sales growth by offering customers flexible payment options, the AR automation platform streamlines credit-to-cash workflows, and the Business Credit Check provides free, instant credit decisions to accelerate sales cycles—all within a single integrated platform.

The business funding landscape has transformed dramatically, with AI-powered automation and non-recourse financing becoming essential for growing companies. While traditional lending options remain constrained by rigid requirements and slow processes, modern alternatives stand out for their unique strengths and compelling value propositions.

According to industry research, the B2B BNPL market reached $14 billion in 2023, with continued growth fueled by demand for flexible, technology-driven financing solutions that support business expansion without compromising cash flow.

2. Traditional Invoice Factoring — The Legacy Alternative

Traditional invoice factoring has served as a go-to financing option for decades, allowing businesses to sell their outstanding invoices to third-party factoring companies for immediate cash. However, this approach comes with significant drawbacks that modern alternatives address more effectively.

Key Characteristics:

Typically recourse-based, meaning merchants remain liable if customers don't pay
Complex fee structures with base rates plus additional charges for credit checks, wire fees, and reserves
Effective APRs around 15–35%, significantly higher than transparent alternatives
Third-party collections that can damage customer relationships
Lengthy approval processes that can take days or weeks

Cost Structure:

Base factoring fees typically 1-5% per month
Additional fees for credit checks, wire transfers, and administrative costs
Reserve requirements holding back 10-20% of invoice value
Hidden costs adding an estimated 10-35% to total expense

While factoring provides immediate cash flow relief, the costs and potential relationship complexities make modern alternatives more attractive for businesses seeking sustainable, relationship-preserving solutions.

3. Revenue-Based Financing — Growth Capital Alternative

Revenue-based financing (RBF) provides businesses with upfront capital in exchange for a percentage of future revenue until a predetermined amount is repaid. Popularized by providers like Clearco and Capchase, this model appeals to businesses with predictable recurring revenue streams.

Platform Characteristics:

Repayment tied directly to daily or monthly revenue
No fixed payment schedule—payments fluctuate with business performance
Typically requires 3-24 month repayment terms
Advance rates usually 50-100% of requested amount
Focus on businesses with strong revenue trends rather than credit history

Cost Structure:

Effective APRs typically around ~20–40%
Total repayment multiples generally 1.15-1.40x the advance amount
Origination fees of approximately 2-5% of advance amount
Potential revenue covenants requiring minimum performance

RBF works well for businesses with predictable, recurring revenue streams like SaaS companies or subscription services. However, the variable repayment structure can strain cash flow during seasonal downturns or unexpected business challenges. According to the Federal Reserve's research on alternative lending, businesses increasingly seek financing options that align with their revenue patterns while maintaining flexibility.

4. SBA Loans and Government Grants — Low-Cost but Limited Options

Small Business Administration (SBA) loans and government grants represent some of the lowest-cost funding options available, but they come with significant limitations in terms of accessibility, speed, and flexibility.

Program Characteristics:

SBA 7(a) loans offer up to $5 million with terms up to 25 years
Rates are negotiated but capped at SBA maximums pegged to prime (spread varies by loan size and term)
Government grants provide non-repayable funding for specific purposes
Extensive documentation and approval requirements
Personal guarantees typically required

Access Challenges:

Lengthy approval processes often taking 30-90 days
Strict eligibility requirements including minimum time in business and revenue thresholds
Collateral requirements for larger loans
Limited flexibility in use of funds
Competitive application processes for grant programs

While SBA loans and grants offer attractive terms when approved, their slow timeline and stringent requirements make them impractical for businesses needing immediate working capital or flexible funding solutions. They work best as long-term strategic financing rather than operational cash flow management tools.

5. Business Credit Cards — Short-Term Flexibility with Considerations

Business credit cards provide immediate access to revolving credit lines with the convenience of widespread acceptance and rewards programs. However, they come with certain limitations for larger business financing needs.

Product Characteristics:

Credit limits typically ranging from $5,000 to $100,000+
Introductory 0% APR periods usually lasting 6-18 months
Ongoing APRs typically ranging from 15-30%
Personal guarantees usually required for approval
Monthly payment requirements with minimum payment thresholds

Cost Considerations:

Interest rates after promotional periods expire
Annual fees ranging from $0 to $500+ for premium cards
Foreign transaction fees of 1-3% for international purchases
Cash advance fees and higher APRs for cash withdrawals
Potential personal liability considerations

Business credit cards work well for small, short-term expenses and building business credit history. They serve different purposes than comprehensive financing solutions designed for larger-scale B2B transactions.

6. Angel Investors and Venture Capital — Equity Financing for High-Growth Companies

Angel investors and venture capital firms provide equity financing in exchange for ownership stakes in high-growth potential businesses. This funding model works best for startups and early-stage companies with significant growth trajectories.

Investment Characteristics:

Angel investments typically ranging from $25,000 to $500,000
Venture capital rounds starting at $1 million and scaling to hundreds of millions
Equity stakes ranging from 10-50% depending on company stage and valuation
Active involvement in company strategy and governance
Focus on businesses with scalable business models and large addressable markets

Trade-offs:

Dilution of ownership and control
Pressure to achieve rapid growth and exit timelines
Extensive due diligence and legal documentation
Strategic involvement in decision-making
Alignment between investor and founder objectives

Equity financing provides substantial capital without debt obligations and fundamentally changes the ownership structure and strategic control of the business. This model works best for high-growth startups with clear exit strategies rather than established businesses seeking operational working capital.

7. Crowdfunding and Community Financing — Alternative Capital Sources

Crowdfunding platforms and community financing initiatives provide alternative capital sources that leverage networks and communities to fund business ventures. These approaches work particularly well for consumer-facing businesses with compelling stories.

Platform Characteristics:

Reward-based crowdfunding offering products or experiences in exchange for funding
Equity crowdfunding selling small ownership stakes to many investors
Community development financial institutions (CDFIs) providing mission-aligned lending
Peer-to-peer lending connecting businesses directly with individual lenders
Minimum viable product or prototype often required

Success Factors:

Compelling storytelling and marketing capabilities
Strong existing networks and communities
Clear value proposition and use of funds
Transparent communication and regular updates
Realistic funding goals and timelines

Crowdfunding can provide valuable validation and capital simultaneously but requires significant marketing effort and public exposure. Community financing offers more traditional lending structures with mission-aligned criteria. These options work well as complementary funding sources.

Making the Right Choice for Your Business

For B2B companies evaluating funding alternatives, the choice ultimately depends on your business stage, funding needs, risk tolerance, and strategic objectives:

By Business Need:

Immediate working capital: Resolve (non-recourse, 1-day funding)
Long-term strategic financing: SBA loans (low-cost, long-term)
High-growth startup capital: Venture capital (large amounts, equity-based)
Operational expense management: Business credit cards (short-term, flexible)
Customer-driven sales growth: Resolve's net terms (enhances buyer purchasing power)

Estimated Cost Comparison for $100K Monthly B2B Sales:

Resolve: Around $2,610-$3,500/month (approximately 2.61-3.5% flat fee)
Traditional factoring: fees are often ~1%–5% of invoice value per month (varies widely)
Revenue-based financing: Approximately $3,750-$8,333/month (20-40% APR equivalent)
Business credit cards: Around $1,250-$2,083/month (15-30% APR, after promotional period)

Implementation Timeline Reality Check:

Same day: Business credit cards (if pre-approved)
1 business day: Resolve (with existing integrations)
Hours to days: Resolve full implementation
30-90 days: SBA loans and government grants
60-120 days: Venture capital and angel investment
Variable: Crowdfunding (depends on marketing success)

For companies seeking a comprehensive solution that combines risk-free financing, transparent pricing, and operational efficiency, Resolve's platform provides a balanced approach for B2B businesses looking to grow sales while protecting cash flow.

Frequently Asked Questions

What is net terms financing and how does it differ from traditional loans?

Net terms financing allows businesses to offer customers extended payment periods (typically 30, 60, or 90 days) while receiving immediate payment from a third-party provider like Resolve. Unlike traditional loans that require personal guarantees, fixed repayment schedules, and debt on your balance sheet, net terms financing is tied directly to specific customer invoices and often structured as non-recourse financing where the provider assumes the credit risk. This means you get paid upfront for your sales without taking on debt or personal liability.

How does AI improve the accounts receivable process for small businesses?

AI dramatically improves accounts receivable processes by automating manual tasks that traditionally consume significant time and resources. Resolve's AR automation automatically reconciles payments across any invoice structure—net terms, COD, or due upon receipt—reducing errors and manual input. The platform uses LLMs to manage workflows, automate payment reminders, and sync transaction data in real-time to accounting systems like QuickBooks. This automation typically results in around 50% less time managing receivables and approximately 30-60% faster payment cycles compared to manual processes.

What are the benefits of offering 'Buy Now, Pay Later' (BNPL) options in B2B ecommerce?

Offering B2B BNPL options significantly increases sales volume and customer retention by enhancing buyer purchasing power. When customers can place larger orders without immediate cash outlay, they're more likely to complete purchases and buy in greater quantities. Resolve's Net Terms provides instant approvals for purchases up to $25,000, creating a seamless checkout experience that reduces cart abandonment. Additionally, since Resolve advances up to 100% of approved invoices within one day, you maintain healthy cash flow while offering flexible payment terms that strengthen customer relationships and drive repeat business.

Is Resolve truly 'non-recourse' financing, and what does that mean for my business?

Yes, Resolve provides truly non-recourse financing, which means you face zero liability if your customers fail to pay their invoices. All cash advances are non-recourse, so what you receive is always yours to keep, regardless of whether your customers ultimately pay. This eliminates the financial risk traditionally associated with offering net terms, allowing you to extend credit to customers confidently while protecting your cash flow and balance sheet. Resolve assumes the credit assessment, credit decision, and majority risk of late payments or defaults, effectively serving as your professional "AR and credit team on tap."

How quickly can my business receive payment using Resolve's invoice advance services?

Your business can receive payment using Resolve's invoice advance services within 1 business day of invoice approval. For qualified customers with established credit profiles, Resolve can even provide instant approvals for purchases up to $25,000, enabling immediate payment processing. The exact timing depends on your customer's credit verification status, but the platform is specifically designed to accelerate cash flow compared to traditional 30-90 day payment cycles, transforming your working capital management and operational flexibility.

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.