Most funders restrict some combination of cannabis, firearms, adult, gambling, crypto, debt relief, most law firms, non-profits, real estate investment and auto sales, though almost every category has at least one funder who writes it at a price. The practical rule is to establish the industry in the first two minutes of the call, because it is the fastest disqualifier there is and the most expensive one to discover late.
Industry restrictions are about collectability and about the funder’s own banking relationships rather than about morality. Understanding the reason tells you which restrictions are absolute and which are a pricing question.
| Category | Why restricted | Any market? |
|---|---|---|
| Cannabis and CBD | Federal banking exposure | Specialist funders only |
| Firearms | Processor and bank policy | Limited |
| Gambling and gaming | Regulatory and chargeback risk | Rare |
| Adult | Processor policy | Rare |
| Crypto | Volatility and banking | Rare |
| Debt relief and credit repair | Regulatory scrutiny | Limited |
| Law firms | Receivables are not receipts | Some, at a price |
| Real estate investment | Lumpy, project-based revenue | Some |
| Auto sales | Floor-plan financing conflicts | Some |
| Non-profits | No owner to guarantee | Rare |
Several of these are restricted less for what the business does than for how the money arrives. An advance repays as a share of daily receipts, so a business with three large payments a quarter is structurally awkward regardless of how profitable it is. Law firms, real estate investors and project-based contractors all fail on shape rather than on category.
Most commonly cannabis, firearms, adult, gambling, crypto, debt relief, many law firms, non-profits, real estate investment and auto sales — though nearly every category has at least one specialist funder writing it at a price.
Because of how the money arrives rather than what the firm does. An advance repays from daily receipts, and a practice billing in large irregular settlements does not produce the steady receipt flow the product is built around.
In the first two minutes. It is the fastest disqualifier there is, and finding it on day four after they have sent statements costs you the work and costs the merchant their goodwill.
Often yes, through specialist funders and at worse pricing — shorter terms, higher factors and smaller advances. Whether that is worth taking is the merchant’s call, made with the numbers in front of them.
Not necessarily, and the distinction can decide the file. Establish what the business actually sells and what its processor classifies it as before assuming the category applies.
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