The short answer
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 |
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.