The pattern
"Complex" and "risky" aren't the same word
A generalist lending model runs on classification before it runs on judgement. If a business's SIC code is broad, or "not elsewhere classified," or the accounts show a pattern the model hasn't been trained to separate (pass-through revenue, deferred payment cycles, multi-entity structures), the model defaults to caution. That's a gap in how the business is described on paper, not a comment on how it's actually run.
The scale
The scale of the gap is bigger than one or two edge cases
886,106 UK companies sit under an NEC ("not elsewhere classified") SIC code, per The Data City, 2023, meaning the classification system itself has nothing specific to say about what they actually do. That's not a rounding error in the data. It's a structural blind spot a generalist model runs straight into, at scale, before a single human looks at a single set of accounts.
The mistake to avoid: assuming a decline was about risk when it was actually about a classification code doing the underwriting instead of a person. The fix isn't a stronger application. It's a lender who reads past the code in the first place.
The sectors
Sixteen industries, sixteen different mechanisms, one shared pattern
Each industry below has its own real, structural reason a generalist model misreads it, not a generic "we understand your sector" claim. The mechanism is what earns the page; the industry name is secondary.
- Freight forwarding & importers Turnover includes pass-through duty and disbursements, which reads as thin margin against big revenue unless someone separates the two.
- Wholesale, FMCG & retailer deductions Large retail customers deduct for shortages, marketing contributions and rebates before paying, so the invoice value and the cash received are routinely different numbers.
- Manufacturing & engineering Cash is committed earlier and in more places than in a services business (raw materials, work in progress, finished stock), often before a sale is confirmed. A generalist P&L read misses that entirely.
- Public sector suppliers The law implies a 30 day term once a valid invoice is received, but milestone sign-off and order matching come before there is an invoice to count from.
- Defence supply chain SMEs Three quarters of MOD spend with SMEs reaches them through primes and the tiers above, on sub-contract terms, not on the MOD's own fast payment route.
- Education & training providers Funded training is paid in stages, and part of the price is only earned when a learner achieves or reaches an outcome, while delivery costs run as the course does.
- Community pharmacy NHS reimbursement runs on its own cycle, unrelated to the retail sales a generalist model expects to see.
- Care homes & regulated healthcare Local authority and NHS-funded beds are paid on a different timetable and rate structure to self-funded residents, in the same business.
- Recruitment agencies Temps are paid weekly while clients settle on 30 to 60 day terms, so high turnover against thin retained margin reads as fragile rather than as the normal payroll cycle it is.
- Professional practices & WIP Work in progress is real value already delivered, but it sits unbilled, which most facilities are not built to advance against.
- SaaS & recurring revenue Annual subscriptions arrive upfront in cash but are recognised a twelfth at a time, so a lender reading the P&L cold sees a different business to the one in the bank account.
- Construction: retentions & CIS Two separate mechanisms (retentions and the Construction Industry Scheme) both reduce cash received against invoiced value, and most content treats them as one thing.
- Multi-site groups A new site or entity can look like a start-up on its own accounts while the group running it has years of history, so a single-entity assessment reads the wrong business.
- Paid media & performance agencies The agency pays Meta, Google or TikTok today and waits 30 to 90 days for the client to settle, a third-party media-spend float that reads like ordinary trade credit but isn't.
- Insurance brokers A book of renewal commission is the real asset, but the bank balance also holds client money, and indemnity commission can be clawed back if policies lapse early.
- MSPs & tech integrators Hardware and licence costs go out before a new client’s first monthly invoice lands, a genuine cash-outlay gap that looks like SaaS deferred revenue but isn’t caused by the same thing.
Where to start
Start on your sector's page, or talk to us if it isn't listed
If your business sits in one of the industries above, start on that page: it leads with the specific mechanism before it mentions any facility. If it doesn't, and you still suspect a generalist model is misreading something structural about how the business works, that's still worth a direct conversation. This list is what we've built dedicated coverage around so far, not the limit of what we can help with.
Limits
The mismatch isn't always permanent
Not every industry on this list needs a specialist lender forever. Several outgrow the mismatch once the accounts are presented differently or the business reaches a size where a relationship manager reviews it manually rather than a model. What doesn't change is the first step: identify the specific mechanism a generalist model is misreading, rather than applying again and hoping a human looks harder this time.
