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 |
The revenue-shape problem
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.
When a merchant is in a hard category
- Say so immediately and say why. It is a funding-market fact, not a judgement about them.
- Check whether the business is actually in the category — a shop selling hunting supplies is not necessarily a firearms dealer, and the distinction sometimes matters to the funder.
- If you have a specialist funder, place it there and expect worse pricing.
- If you do not, refer it out rather than sit on it. A referral that funds is worth more than a file that ages.
Questions brokers ask
What industries do MCA funders not fund?
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.
Why are law firms hard to fund?
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.
When should you ask a merchant what industry they are in?
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.
Can restricted-industry merchants get funded at all?
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.
Is a hunting supplies store a firearms business?
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.
Alex Makowski
Founder, Infinite Bookings
Runs the lead generation operation behind Infinite Bookings — paid traffic, the funding application, and the delivery pipeline that puts records into brokers’ CRMs.
Reachable directly at alex@infinitebookings.com or 732-609-7182.