🎯 Why This Matters
Not all businesses are funded equally. Lenders assess industry risk just as much as credit and revenue. This training helps your team quickly identify high-risk business models, set realistic expectations, and package files accordingly.
🔍 Industry Risk Tiers (Generalized Matrix)
| Industry | Tier | Risk Level | Lender Sentiment |
|---|---|---|---|
| 📦 E-commerce (Amazon, Shopify) | Tier 1 | Low–Moderate | 💚 Tech-friendly, scalable |
| 🚛 Trucking & Logistics | Tier 1 | Low–Moderate | 💚 Hard assets, known risk |
| 🧼 Cleaning & Janitorial | Tier 1 | Low | 💚 Stable recurring revenue |
| 🛠 Contractors & Construction | Tier 2 | Moderate | 🟡 Seasonal, inconsistent books |
| 🍔 Restaurants & Food Trucks | Tier 2 | Moderate–High | 🟡 High closure rate |
| 🧘 Coaches / Consultants | Tier 3 | High | 🔴 No hard assets, vague revenue |
| 🧙 Spiritual / Tarot / Energy Healing | Tier 3 | High | 🔴 Unverifiable business model |
| 🏦 Financial Services / Credit Repair | Tier 3 | Very High | 🔴 Often blocked or restricted |
| 🎭 Entertainment / Events | Tier 2 | Moderate | 🟡 Cyclical, COVID impact still lingers |
| 💸 MLM / Network Marketing | Tier 4 | Extreme | 🚫 Often denied outright |
| 🧴 Health & Supplements | Tier 2–3 | Moderate–High | 🟡 Risk of FDA/regulatory interference |
| 🌿 Cannabis-Adjacent | Tier 4 | High | 🚫 Federal restrictions, banking blocks |
🧠 What to Look for During Intake
| Signal | What to Ask |
|---|---|
| No physical address or office | “Where do you typically operate from?” |
| No invoices, contracts, or POS history | “How do you track or receive client payments?” |
| Vague service descriptions | “Can you walk me through your average monthly client flow?” |
| Income from personal coaching or mentorship | “Do you offer a tangible product or structured package?” |
✅ How to Package High-Risk Industries
| Tactic | Why It Works |
|---|---|
| Add testimonials, screenshots, or sales reports | Adds credibility |
| Submit full P&L or accounting docs | Shows operational maturity |
| Use secured funding if available | Lowers lender risk |
| Recommend PG-based or revenue-based product first | No-PG unlikely to fly |
| Start with small limit LOC or MCA | Show repayment behavior before requalifying |
🧠 Advisor Framing Tips
“Some lenders are more cautious in your industry — I’ll make sure we package the strongest file possible so you don’t waste time applying where it won’t work.”
“We’ve funded several clients in this space — the key is clean documentation and consistent revenue
