Square Loans Alternatives: 7 Better Options for B2B Businesses in 2025

While Square Loans helps small retailers access working capital, it’s not designed for B2B companies that need to extend customer credit, automate receivables, and eliminate non-payment risk. B2B businesses need solutions that enable customer payment terms, eliminate bad debt risk, and automate accounts receivable. Resolve Pay leads the market as the only platform offering 100% non-recourse financing with AI-powered credit decisions and full AR automation.

Key Takeaways

Non-recourse financing eliminates risk: Resolve Pay provides 100% non-recourse financing with zero merchant liability, unlike Square Loans which leaves merchants fully responsible for repayment regardless of customer payment
Significantly lower costs: Resolve Pay charges estimated 2.61-3.5% flat fees versus Square Loans' typical 10-16% fixed fees, representing significantly lower total cost when including labor savings
AI-powered instant credit decisions: Resolve’s proprietary AI engine delivers approvals in seconds — up to 10–30× faster than traditional manual underwriting.
Complete AR automation: Resolve Pay saves 14+ hours per week on manual accounts receivable tasks versus Square Loans which offers no AR automation features
B2B-specific infrastructure: While Square Loans serves B2C retail, Resolve Pay is purpose-built for B2B businesses needing to offer net terms to customers
Deep ERP integration: Resolve Pay offers bi-directional sync with QuickBooks, NetSuite, and other enterprise systems that Square Loans completely lacks

1. Resolve Pay — The Complete B2B Payment Infrastructure

Resolve Pay stands out as the premier Square Loans alternative by completely eliminating merchant risk through its 100% non-recourse financing model. Serving over 15,000 B2B businesses, Resolve Pay brings sophisticated fintech innovation specifically designed for B2B transactions.

Key Features:

100% non-recourse financing with zero merchant risk
Instant credit decisions using proprietary AI underwriting (10-30 seconds)
Net 30, 60, or 90-day terms for customers
Up to 100% advance payment within 24 hours
Risk-based fees of estimated 2.61-3.5% flat fee
Deep ERP integration with QuickBooks, NetSuite, Dynamics 365, Oracle, and Sage Intacct
White-label payment portal for customers

Pricing Structure:

Estimated 2.61-3.5% flat fee based on risk and advance percentage
Monthly subscription starting around $499/mo for full AR automation suite
No hidden charges or volume requirements
Custom pricing for enterprise volumes

The platform's AI-powered AR automation reduces manual work by eliminating 14+ hours per week in administrative tasks, while its LLM-powered invoicing workflow automatically syncs transactions across systems. Recent case studies demonstrate significant impact: businesses report 40% average order increases when offering net terms, with 20% year-over-year sales growth.

Unlike Square Loans which serves B2C merchants seeking working capital, Resolve Pay enables B2B businesses to offer payment terms to their customers while getting paid immediately. The platform's non-recourse model means merchants face zero risk if customers default, completely eliminating bad debt expense. This fundamental difference makes Resolve Pay the only true alternative for B2B businesses needing comprehensive payment infrastructure rather than simple merchant financing.

The B2B payments landscape has transformed dramatically, with AI-powered automation and non-recourse financing becoming essential for growing companies. While Square Loans maintains its position serving B2C merchants through Square POS, several alternatives stand out for B2B businesses seeking superior solutions tailored to their specific needs.

2. PayPal Working Capital — Fast Funding for PayPal Sellers

PayPal Working Capital represents a viable option for businesses already processing significant volume through PayPal. The platform provides fast funding based on PayPal sales history rather than traditional credit underwriting.

Platform Strengths:

Fast funding in minutes to 24 hours
Lower fees than Square Loans (estimated 5-10% vs 10-16%)
Repayment automatically deducted from PayPal sales
No collateral requirements
Immediate approval for qualified sellers

Limitations:

Requires significant PayPal processing volume
90-day minimum payment requirement regardless of sales
No B2B features like net terms or AR automation
Platform lock-in with PayPal ecosystem only
Merchant bears all risk for repayment

While PayPal Working Capital offers faster initial funding than Resolve Pay (minutes vs 24 hours), it completely lacks B2B-specific features. The platform serves the same fundamental purpose as Square Loans—providing working capital to merchants—but through the PayPal ecosystem instead of Square POS.

3. Shopify Capital — Flexible Financing for Shopify Merchants

Shopify Capital provides funding specifically for Shopify store owners, with flexible repayment terms tied to sales volume. The platform operates on an invitation-only basis, targeting established Shopify merchants with strong sales history.

Key Capabilities:

Flexible repayment tied to sales with no minimum payment deadlines
Large funding amounts up to $2 million
No traditional credit checks required
Seamless integration with Shopify ecosystem
Automated repayment from sales

Competitive Constraints:

Invitation-only access with no direct application
Shopify platform dependency
No B2B net terms or customer payment options
Merchant responsible for all repayment risk
Limited to B2C e-commerce businesses

Shopify Capital's main advantage over Square Loans is its higher maximum funding amounts and potentially more flexible repayment terms. However, like Square Loans, it serves B2C merchants rather than providing B2B payment infrastructure, making it unsuitable for businesses needing to offer net terms to customers.

4. BlueVine — Traditional Business Lending with Competitive Rates

BlueVine offers traditional business loans and lines of credit with competitive interest rates. The platform serves small businesses with established credit profiles and revenue history.

Platform Features:

Lines of credit up to $250,000
Competitive interest rates for qualified borrowers
Traditional loan structure with fixed repayment terms
Established lending platform with proven track record
Multiple financing products available

Significant Limitations:

Requires strong credit profiles
Traditional loan structure creates debt obligations
No B2B-specific features like net terms
Merchant bears all repayment risk
No AR automation or payment infrastructure

BlueVine represents a more traditional lending approach compared to Square Loans' revenue-based model. While interest rates may be competitive, the platform still creates debt obligations and lacks the B2B payment infrastructure that businesses offering net terms require.

5. OnDeck — Established Small Business Lending

OnDeck provides established small business lending with loan amounts up to $250,000. Owned by Enova International since 2020, OnDeck remains a leading lender for small businesses with strong credit profiles.

Core Offerings:

Business loans up to $250,000
6-24 month repayment terms
Established lending platform
Traditional underwriting process
Multiple loan products

Critical Constraints:

Requires strong credit profiles
Creates traditional debt obligations
No B2B payment features
Merchant responsible for all risk
No integration with B2B payment workflows

OnDeck represents the traditional small business lending model, which fundamentally differs from the B2B payment infrastructure that Resolve Pay provides. While it may serve businesses needing working capital, it cannot enable B2B net terms or eliminate payment risk.

6. FundThrough — Invoice Factoring Alternative

FundThrough specializes in invoice factoring for small and medium businesses, providing funding against outstanding invoices. The platform focuses on receivables financing with a streamlined online application process.

Factoring Capabilities:

Invoice-based financing up to 90% of invoice value
Faster funding than traditional factoring
Focus on SMB market
Online application process
Specialized in receivables financing

Important Considerations:

Traditional factoring fees and structures
May require recourse agreements
Limited AR automation features
Narrow focus on invoice financing only
Less comprehensive than integrated platforms

FundThrough represents a more specialized alternative focused specifically on invoice factoring. While it addresses cash flow needs related to accounts receivable, it lacks the comprehensive B2B payment infrastructure, non-recourse protection, and AI-powered automation that Resolve Pay provides.

7. Credibly — Flexible Business Financing

Credibly offers flexible business financing for small businesses with varying credit profiles. The platform provides multiple financing products including term loans and lines of credit.

Platform Characteristics:

Flexible financing amounts for qualified businesses
Flexible credit requirements
Multiple product offerings
Established lending platform
Traditional loan structures

Key Limitations:

Creates debt obligations for merchants
No B2B payment infrastructure
Merchant bears all repayment risk
No net terms or customer payment features
Traditional lending model

Credibly represents another traditional lending option that serves the same fundamental need as Square Loans—providing working capital to small businesses. However, it lacks the B2B-specific features, risk elimination, and payment infrastructure that modern B2B businesses require.

Why B2B Businesses Choose Resolve Pay Over Square Loans

The fundamental difference between Resolve Pay and Square Loans lies in their core purpose. Square Loans provides working capital to B2C merchants through revenue-based lending, while Resolve Pay provides comprehensive B2B payment infrastructure that enables businesses to offer net terms to customers while eliminating risk.

Total Cost of Ownership Analysis:

For a B2B business processing $120,000 annually in net terms transactions, Resolve Pay delivers significantly lower total costs compared to traditional merchant financing options. This dramatic cost difference stems from Resolve Pay's combination of lower transaction fees, eliminated bad debt losses (0% vs estimated 2.5-5% typical), and AR automation labor savings (14+ hours per week at $30/hour).

Strategic Business Impact:

Beyond cost savings, Resolve Pay delivers strategic business advantages that Square Loans cannot match:

40% average order increases when offering net terms
20% year-over-year sales growth through enhanced customer purchasing power
Ability to compete for enterprise customers requiring net payment terms
Complete elimination of bad debt risk through non-recourse financing
Streamlined operations through AI-powered AR automation

Making the Right Choice for Your B2B Business

For B2B companies evaluating Square Loans alternatives, the choice depends on your specific business model and needs:

Choose Resolve Pay when you need:

B2B payment infrastructure with net terms extension to customers
Zero risk from customer non-payment (100% non-recourse)
AR automation to save 14+ hours per week
Instant AI credit decisions (10-30 seconds)
Deep ERP integration with enterprise systems

Choose Square Loans alternatives when you need:

Working capital for B2C retail operations (not B2B net terms)
Platform-specific financing tied to existing payment processing
Traditional business loans with established lenders
Invoice factoring for specific cash flow needs

The key insight is that Resolve Pay serves a fundamentally different need than Square Loans and its alternatives. While Square Loans provides working capital to merchants, Resolve Pay provides the infrastructure to offer payment terms to customers while protecting cash flow and eliminating risk.

For B2B businesses specifically, Resolve Pay represents the only comprehensive solution that combines non-recourse financing, AI-powered credit decisions, full AR automation, and deep ERP integration into a single platform designed specifically for B2B transactions.

Frequently Asked Questions

What are common alternatives to Square Loans for small businesses?

Common alternatives include Resolve Pay for B2B businesses needing net terms infrastructure, PayPal Working Capital for PayPal sellers, Shopify Capital for Shopify merchants, and traditional lenders like BlueVine and OnDeck for general business loans. Resolve Pay stands out for B2B businesses by offering 100% non-recourse financing with estimated 2.61-3.5% flat fees compared to Square Loans' typical 10-16% fixed fees.

How does invoice financing differ from a traditional business loan?

Unlike traditional business loans that create debt obligations, Resolve Pay's invoice financing provides non-recourse advances on approved invoices with no debt creation. Traditional loans require personal guarantees and create monthly payment obligations regardless of customer payments, while Resolve Pay's model eliminates merchant risk entirely with 100% non-recourse protection.

Can offering net terms help my business grow without taking on debt?

Yes, offering net terms through Resolve Pay enables growth without debt. Businesses report 40% average order value increases and 20% year-over-year sales growth when offering net terms to customers. Resolve Pay pays you upfront while your customers get 30-90 days to pay, with Resolve taking on all credit risk and collections responsibility.

What kind of financing is best for startup businesses with no revenue?

For B2B startups with no revenue, Resolve Pay's credit check service provides free, instant credit assessments using only company name and address. This enables startups to offer net terms to established customers while getting paid immediately, without requiring the startup to have existing revenue or credit history.

How does a B2B BNPL solution like Resolve impact customer purchasing power?

Resolve Pay's B2B BNPL significantly increases customer purchasing power by allowing buyers to purchase what they need now and pay later with no interest or fees for 30-60 days. This short-term capital extension enables customers to place larger orders and make purchases they might otherwise delay, directly driving sales growth for the seller.

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.