Definition of a restricted industry
Many business industry types are considered undesirable by lenders. They will decline businesses for being in a certain industry type. If your business has been denied by a lender for being in a restricted industry, call us for assistance. Add your businesses to many that have closed business loans in industries most lenders consider prohibited. Apply below:
They are financing products or loans to businesses that are in industries that lenders do not lend or provide financing to.
How to get a restricted industry business loan:
- Use the list provided to determine if your business type may be considered a restricted industry.
- Identify lenders that will lend to your industry. Contact those lenders and ask for their qualifying criteria. Select the best match based on your company’s needs and their approval criteria.
- If approved, request and review closing documents. Submit all required closing documentation. Complete merchant call if required.
- Receive funds into your business checking account.
Most frequent type of requests and calls received:
“Help get me a restricted industry business loan.”
I need a restricted industry business loan.
Many clients that fall into this category call in and have already been denied.
FAQ Frequently asked questions:
Question: My business was turned down for being a restaurant. What can I do to get approved?
Answer: Make sure ahead of time that any lender and the program your business is applying for will approve your type of business. In your case, ask the representative or lender if restaurants can be approved. You can also ask if they consider restaurants a prohibited industry or one they do not like to lend to.
Question: We asked the lender before applying if they lend to our type of business, but they did not tell us. Can they refuse to give that information?
Answer: Lenders do not want to say they will not lend to a certain industry. Refusing to lend to a certain industry might invite accusations of discriminatory lending practices. This is based on the idea that a business loan request is declined just because of the type of business it is instead of the ability of the business to repay the loan.
Question: We applied for a business loan and were told we were not in a preferred industry. What does that mean?
Answer: Some lenders have categories of businesses they would rather not lend to but don’t consider them prohibited. These lenders often call these challenged industries. The trucking and construction as well as used car industries are two examples. Many lenders will consider lending to these industries but will scrutinize them more. The lender will require a longer time in business, higher credit scores and higher revenues. They will also be stricter on negatives in the business profile such as low balances in the business checking account. Fewer overdrafts or nsfs are allowed. So if you are told your business is not a preferred industry, then ask the lender what their approval requirements for your industry are.
Answer: Banks and also alternative lenders do not want to lend to many business types because they have statistics that show that some industries have much higher rates of businesses failing in those sectors.
Restricted industries or elevated scrutiny businesses – examples:
Many industries are restricted by lenders. Restricted industries include: Financial services and lending. Restricted industries include
Accountants, Accounting firms, Accounts Receivables Financing Factoring Companies.
Adult Entertainment, Escort Services, Gentleman’s Club, and adult industries.
Airport companies and Airport related companies, Airlines, and Regional Airline Companies.
ATV Dealers, ATV Sellers, RV Dealers.
Auto and Home Supply Stores.
New Auto Dealerships, used car dealer, used car dealers, used car sellers.
Cemeteries and Funeral Homes.
Consignment Stores, Child Day Care Services and Churches.
Collection Agencies, Check Cashing Companies, Bail Bond companies, Credit Reporting Services, Credit Protection Services Businesses, Credit Card Protection and Credit Restoration / Repair Businesses and Consulting Businesses.
Collection Agencies, currency exchanges, and Wire Transfer Businesses.
Dating Services and Escort Services.
Debt Consolidation Companies
More restricted industry business loan type companies
Direct Mail Companies.
E-businesses and E-Commerce businesses.
Educational Services, Colleges and Schools.
Factoring Companies, Financial Institutions, Financial Transactions Firearms sales, weapon sales
Financial Transaction Processing, Financial Advisors and Freight Forwarding Forwarders.
Fitness and Recreational Facilities.
Fraternities and Sororities.
Gambling and Gaming Establishments.
Holding Companies, Insurance Agencies, and Investments.
Home Building, Home Construction, Housing Related Industries, and Home Home based business, other home based businesses.
Horoscope and Fortune Telling.
Import Companies / Export Companies.
Income Tax Preparatory Services, and Income Tax Return Services.
Insurance Agents and insurance brokers.
Insurance companies, Insurance Agencies, and Investment Opportunities.
Lotteries, Raffles, Gaming and Gambling.
Further restricted industry business loan type companies
Lawyer and lawyers. Attorney and Attorneys. Legal practice and Legal Practices.
Mining Companies and Quarrying.
Magazine Subscriptions, Mail Order Coin Sales, Mobile Home Dealers, Mobile Phone Dealers, Wireless Stores and Cellular Stores,
Mortgage Lenders and Mortgage Reduction Services.
Motorcycle and Scooter Dealerships and Motor Home and Camper Dealerships.
Non Profit Companies, Not for Profit Companies and Not for Profit Grant Writers.
Non Bank Cash Advance Companies.
Oil Pipelines companies and Oil and Gas field companies
Online Stores, Online Retail Stores, Online Merchants, and Online sales.
Payroll Companies, Pawn Shops, Thrift Stores and Consignment Stores.
Personal Trainers. Precious Metal Sales and Coin Sales.
Printing and Printers.
Real Estate companies, Real Estate Management Companies, Real Estate Investments, and Real Estate Brokers.
Recreational Vehicle Sales
Restricted industry types continued
Sports Events Advice, Sports Instruction and Recreation Instruction.
State Agencies and Government Agencies.
Taxi services and Tax Preparation Services
Ticket Brokers, Time Share Investments and Tour Guides.
Travel Agencies, Discount Travel Clubs, Travel Related Companies and Travel Subscriptions.
Tobacco and Electronic Cigarettes, Firearms and Gun Stores.
Trucking Companies, Transportation companies, Logistics Companies and Sea Transportation companies.
Used Car dealers, Auto Dealers, new car dealers and Truck Dealers.
Used Furniture Stores and Furniture Retailers.
Vehicle Inspection Companies.
Virtual Auction Houses.
Wireless phone and accessories.
Elevated Scrutiny Industries
Other Industries are reviewed with “elevated scrutiny”.
Home health care companies. Private home care companies.
Web development, Credit and debt counseling. Financial advisors and consultants.
Elevated Scrutiny industries often include:
Annual Membership Clubs and Appraisal Services.
Auction Houses and Auction Businesses.
Benefit Package Companies.
Boat Sales, Business Opportunity Companies.
Buyers Club and Coupon Book Companies .
Detective services and Private Investigator Services or companies.
Diet companies or Diet program companies.
Donation Companies. Door to Door Sales companies.
Financial Aid Services Companies.
Flooring companies, Tile Companies, Blinds Companies, Window Companies.
Formal wear companies.
Fortune Teller Companies, Psychics, Astrologers and Spiritual advisors.
Furniture Stores, Home Based Businesses, Homeopathic Remedies and drugs insurance.
Modeling Agencies and Beauty Pageant Organizations.
– Mortgage Lender or Mortgage lenders
Multilevel Marketing and Pyramid Sales.
Online Electronic, High Ticket Electronics, Prepaid Phone Card Companies, Prepaid Phone Card Seminar Companies, Sports Memorabilia Companies, Telemarketing Companies, Ticket Agencies, Time Share Companies and Web Design and Web Hosting Companies.
– Construction companies are Restricted Industry or Elevated Scrutiny.
– Trucking companies
– Utility companies
– Seasonal business
There are similar Elevated Scrutiny Industries. Underwriting will consider them, but put the applicant under a tougher review and approval process.
Lenders often either have restrictions or elevated scrutiny of companies
that work in construction type work. These companies are either declined
or lower amounts with shorter terms are approved.
Frequent questions and comments by customers. Answers here.
Why are insurance companies hard to get funding for? What is wrong with insurance companies? Why can’t our insurance company get enough funding?
Insurance companies, travel agencies and convenience stores that sell gasoline often have to payout most of the commissions they get. As a result,
most of the revenue they show coming into their account is not really business revenue. Only a small part of it is. A travel agency may keep a small percentage of what they receive and they have to payout the rest. Insurance companies may receive commissions for life insurance the sold. Then the have to pay the insurance broker that sold that policy.
Lenders have to make a decision and approval amount based on their real income, or net income.
Industries that are not restricted:
– Auto Repair
– Auto Repair
Seasonal Businesses have difficulty getting business Funding:
What is a Seasonal Business? Definition of a Seasonal Business:
A Seasonal Business is a Business that has it’s Peak Sales and Operations during part of the year. The remainder of the Year they are either slow or closed.
Examples of Seasonal Businesses include:
Accountants and Tax Preparation Services.
Bridal Wear businesses, Catering Halls, Floral Businesses,
Moving Companies, Taxi and Limousine Services, Jewelry, Shipping Businesses, Golf Courses and Ski Resorts. Other seasonal businesses are nurseries, ice cream shops and amusement parks.
Examples of customer case
Santa Fe, NM, for immediate release. Pueblorides, a used car dealer in the Santa Fe area completed a $45,000 working capital line. The company is a small used car dealer in the Pueblo, NM area. Used Car sales are a restricted industry. We were able to assist them using a small number of business lines available to fund this industry. They were turned down by several banks and other lenders. With this funding, there are now able to increase the number of vehicles on their lot. President Basel Martin responded to our request for comment. “With this line, we are able to increase our vehicle inventory. We will focus on the Pick up Truck segment in 2017. Sales continue to increase next year and are expected to double to over $1,000,000 by the end of next year. We look forward to working with Smallbusinessloansdepot.com in the future to grow our business.”
Callers tell us they have been denied for restricted industry or in a restricted industry.
Getting a business loan in a restricted industry
Businesses that have been denied by a lender for being in a restricted industry will have to get a business loan another way. Ask lenders upfront if they will loan to businesses in your industry. Find out if they put businesses into other funding categories. If so, what are they? These categories sometimes include the following:
Preferred Merchant List
They may be called a Challenged Merchant List.
If the lender has these categories, they will not tell you. Ask if they have preferred industries. Ask if they have restricted industries they do not lend to. Finally ask if they have industries they label as hard to lend to. Asking these questions will help you get a restricted industry business loan. They may avoid unnecessary declines.
Representatives service the following cities in the Western Region and can be contacted.
Alaska, Hawaii and California
In Anaheim, CA and Anchorage, AK. Bakersfield, CA and also in Carlsbad, CA. Chula Vista and also Fontana, CA. Fremont, CA and in Fresno, CA. Hayward, CA and Honolulu HI. Irvine, CA and in Madera, CA. Modesto, CA and also Merced, CA. Oakland, CA and in Ontario, CA. Oxnard, CA and Riverside, CA. Roseville, CA and in San Francisco, CA. San Jose, CA and also San Diego, CA. Santa Ana, CA and in Santa Clara, CA. Santa Rosa, CA and Sacramento, CA. Salinas, CA and in San Bernardino, CA. In Santa Barbara, CA and also Santa Maria, CA. Sunnyvale, CA and in Stockton, CA. Thousand Oaks, CA and Vallejo, CA. Ventura, CA and also in Visalia, CA.West Region:
Representatives in the following cities may also be contacted:
Nevada, Oregon and Washington:
In Bellevue, Washington and Eugene, OR. Everett, WA and in Henderson, NV. Kent, Washington in addition to Las Vegas, NV. Olympia, WA and also Portland. Reno, NV and Seattle, WA. Olympia, WA and in Paradise, NV. Portland, OR in Renton, Washington. Salem, OR and in Seattle, WA. Sparks, NV as well as Spokane, WA. Tacoma, WA, Vancouver, Washington and Yakima, Washington.
Arizona and Utah:
Albuquerque, AZ and Avondale, AZ. Chandler, AZ and in Flagstaff, AZ. Gilbert, AZ and in Glendale, AZ. Goodyear, AZ and also Mesa, AZ. Nogales, AZ as well as Ogden, UT. Phoenix, AZ and in Peoria, AZ. Provo, UT and Scottsdale, AZ. Salt Lake City, UT and also Scottsdale, AZ. Surprise, AZ and also in Tempe, Arizona. Tucson, AZ, Yuma, AZ and San Tan Valley, AZ.
Colorado, Idaho, Montana, New Mexico and Wyoming:
In Albuquerque, NM, Aurora, CO. Boise, ID and in Cheyenne, WY. Colorado Springs, CO as well as Denver, CO. Helena, MT and Lakewood, CO as well as Santa Fe, NM.
Consultants in the following cities can be called to schedule a same day appointment
or call: 919-771-4177
Kentucky, Virginia, Washington, D.C., and West Virginia: In Alexandria, VA and Arlington, VA. Chesapeake, VA and in Hampton, VA. Huntington, WV and also in Kenner, VA and Lexington, KY. Louisville, KY as well as Lynchburg, Virginia. Newport News, VA and in Norfolk, VA. Petersburg, VA and also in Portsmouth, Virginia. Richmond, VA and Roanoke, Virginia. In Suffolk, Virginia and also Virginia Beach, VA.
North Carolina, South Carolina:
In Anderson, SC and Asheville, NC. Cary, North Carolina and also in Chapel Hill, NC. Charleston, SC and in Charlotte, NC. Chattanooga, TN as well as Columbia, SC. Concord, NC and Davidson, TN. Dunn, NC, Durham, NC and Fayetteville, NC. Franklin, TN, Gastonia, NC. as also in Greensboro, NC. Greenville, SC, Henderson, NC as well as Hickory, NC. High Point, NC, Kingsport, TN and Knoxville, TN. In Maudlin, SC, Memphis, TN and also Morristown, TN. Murfreesboro, TN, Myrtle Beach, SC and Nashville, TN. North Charleston, South Carolina as well as Raleigh, NC. Sanford, NC, Lenoir City, TN and in Shelbyville, TN. Spartanburg, SC, Wilmington, North Carolina and Winston-Salem, NC.
In Cape Coral, FL, Clearwater, FL and Daytona Beach, FL. In Jupiter, FL, Fort Myers, FL as well as Ft. Lauderdale, FL. Hialeah, FL, Jacksonville, FL and Lakeland, FL. Melbourne, FL, Miami, FL and Ocala, FL. Pensacola, FL, Kissimmee, FL as well as Naples, FL. Orlando, FL, Ormond Beach, FL and also in Palatka, FL. In Palm Bay, FL, Pensacola, FL and also Port St. Lucie, FL. Saint Petersburg, FL, Sanford, FL and Tallahassee, FL. In Tampa, FL, West Palm Beach, FL as well as Winter Haven, FL.
Alabama, Georgia, and Mississippi:
In Atlanta, GA, Augusta, GA and Birmingham, AL. Gulfport, MS, Hoover, AL and also Huntsville, AL. Jackson, MS, Mobile, AL as well as Montgomery, AL. Savannah, GA, St. Mary’s GA and also in Talladegha, AL.
Arkansas and Louisiana:
In Baton Rouge, LA and Fayetteville, AR. Forrest City, AR, Lafayette, LA and Little Rock, AR. Metairie, LA and New Orleans, Louisiana. Baton Rouge, Louisiana, Shreveport, Louisiana and also Lafayette, Louisiana.
Oklahoma and Texas:
In Arlington, TX and Austin, TX. Bartlesville, OK, Beaumont, TX and in Corpus Christi, TX. Dallas, TX, Edinburg, TX and in El Paso, TX. Ft. Worth, TX, Houston, TX as well as Killeen, TX. Lafayette, LA, Mission, TX and Muskogee, OK. Oklahoma City, OK, McAllen, TX and also in New Braunfels, TX. Round Rock, TX, San Antonio, TX, as well as Shawnee, OK. Sugarland, TX, and The Woodlands, TX as well as Tulsa, OK.
Representatives in the following Midwest cities can be contacted:
Illinois, Indiana, Wisconsin:
In Anderson, IN, Carmel, IN, and Aurora, Illinois. Chicago, Illinois, Elgin, Illinois as well as Rockford, Illinois. Joliet, Illinois, Lee’s Summit, Missouri and in Naperville, Illinois. Springfield, Illinois, Peoria, Illinois and also in Elgin, Illinois. Waukegan, Illinois, Cicero Town, Illinois as well as Champaign, Illinois. Bloomington, Illinois, Decatur, Illinois and Eau Claire, WI. Fort Wayne, IN, Gary, IN and in Indianapolis, IN. Madison, WI, Milwaukee, WI and Naperville, IL. Green Bay, Wisconsin, Kenosha, Wisconsin, and Peoria, IL. Racine, WI, Springfield, IL and also Waukesha, WI.
Michigan and Ohio:
In Akron, OH, Ann Arbor, MI and Canton, OH. Cincinnati, OH, Cleveland, OH and also Columbus, OH. Dayton, OH, Dearborn, MI and in Detroit, MI. Flint, MI, Grand Rapids, MI as well as Marion, OH. Maysville, OH, Muskegon, MI and Parma, Ohio. Toledo, OH, Wilmington, OH, Wyoming, MI and also Youngstown, OH.
Kansas, Nebraska, North Dakota and South Dakota:
In Council Bluffs, NE and Kansas City, MO. Lawrence, KS, Omaha, NE as well as Wichita, KS.
Iowa, Minnesota, and Missouri:
In Bloomington, MN and Columbia, MO. Davenport, IA, and also Des Moines, IA. Duluth, MN and also Independence, Missouri. Kansas City, Missouri and Minneapolis, MN. Overland Park, MO as well as Rochester, Minnesota. Springfield, MO, St. Charles, MO as well as St. Joseph, MO. Springfield, Missouri and St. Louis, Missouri. St. Paul, Minnesota and St. Cloud, MN.
In Albany, NY, Batavia, NY and Buffalo, NY. Cheektowaga, NY, New York City, NY as well as Niagara Falls, NY. Rochester, NY, Schenectady, NY, Seneca Falls, NY and Syracuse, NY.
Maine, Vermont, New Hampshire and Massachusetts:
In Bangor, ME and Boston, MA. Burlington, VT, Cambridge, MA and Concord, NH. Montpelier, VT, Newton, MA as well as Portland, ME. Providence, MA and Springfield, MA. In Warwick, MA as well as Worcester, MA.
Pennsylvania, Maryland and Delaware:
In Allentown, PA and Baltimore, MD. Bethlehem, PA, Columbia, MD and Dover, DE. Harrisburg, PA, Lancaster, PA and in Lansing, MI. Lebanon, PA, Manchester, PA as well as New Castle, PA. Philadelphia, PA, Pittsburgh, PA and also Reading, PA. In Salisbury, MD, Scranton, PA and Towson, MD. In Weirton, PA, Wilmington, DE and also in York, PA.
Connecticut, New Jersey and Rhode Island:
In Bridgeport, CT and Camden, NJ. Hartford, CT, Jersey City, NJ as well as Milford, CT. New Haven, CT, New London, CT and Newark, NJ. Norwalk, CT and Norwich, CT.
Thank you for visiting our restricted industry business loan resource page.