The factoring industry has a few distinct segments. Firms that operate in these segments tend to fund businesses that work directly in those vertical markets. These industries are so particular in their models it makes financing invoices difficult unless the factor has a fair amount of experience working through the various issues associated with those operations.
Trucking and everything related to trucking and hauling brokering is a very specialized segment. The rates and initial advances are different, the due diligence is specific and truckers tend to stick with trucking factoring companies.
Construction and most everything related to building trades is a segment that relies on retainages, bonding, and a higher level of risk than other industries. There are factors which fund primarily for the construction industry.
Healthcare receivables are another unique segment. Also known as third party payment receivables these are paid by insurance companies and federal and state agencies like Medicare. This is a extremely specific commercial finance area and factors that provide funding to healthcare related businesses focus on this solely without delving into any other industries. For the most part, qualifying for healthcare factoring requires a significant amount of revenue volume to get approved.
Seafood and agriculture companies have regulations associated with these industries and also are funded by factoring companies who have the expertise to understand whether their client is conforming to all the applicable laws and notifications.
The message here is do some research and learn whether a finance company has enough experience in your line of business before applying for factoring approval.