In a recent Did You Know? post, we highlighted that 74% of SMBs are turning to non-bank lenders — and within that 74%, industries like hospitality, What matters more is how brokers use that insight to drive better outcomes for their merchants:
1. What industries are driving this shift
2. How they’re using alternative financing
3. What moments brokers should be watching for to step in, fulfill those needs, and build long-term loyalty
Because when brokers understand how capital flows through different industries, they’re better positioned to:
âś… Anticipate funding needs
âś… Recognize early signs of pressure
âś… Act at the right moments
And ultimately, become more than a funding source — they become a long-term partner.
Alternative financing isn’t just growing — it’s becoming embedded in how certain industries operate.
🍽️ Hospitality & Food Services (28–30%)
How they use funding:
Hospitality businesses rely heavily on alternative financing to manage seasonal swings and unpredictable cash flow.
Funding is often used for:
- Inventory ahead of busy periods
- Payroll during slower weeks
- Equipment upgrades or repairs
Key moments to watch:
- Spring ramp-up (March–May): inventory build, hiring, and early marketing spend
- Pre-summer positioning: restaurants, retail, and travel are preparing for peak traffic
- Post-winter recovery: businesses rebuilding cash flow after slower Q1 periods
- Early signs of strain: stacking begins when revenue hasn’t caught up to spend
👉 These merchants often need funding to stay operational — but without the right structure, that can quickly lead to stacking.
For brokers, this is the moment to step in early, reset the situation, and protect long-term deal performance.
🛍️ Retail & eCommerce (15–18%)
How they use funding:
Retailers use capital to stay ahead of inventory cycles and demand
Funding is typically used for:
- Bulk inventory purchases
- Reordering high-performing products
- Marketing and promotional spend
Key moments to watch:
- Pre-season inventory build: not just Q4 — spring and summer ramps matter too
- Promotional pushes: flash sales, paid media spikes, influencer campaigns
- Slower sell-through: inventory sitting longer than expected
- Margin pressure: discounts increase, but revenue doesn’t keep pace
👉 When inventory doesn’t convert fast enough, merchants often take on additional advances to bridge the gap — and that’s where stacking begins.
The difference is recognizing it early and restructuring before pressure builds.
🏥 Healthcare & Professional Services (12–14%)
How they use funding:
These businesses typically use financing for growth and expansion — not survival.
Funding supports:
- Hiring staff
- Expanding services or opening new locations
- Investing in equipment and technology
Key moments to watch:
- Expansion without immediate revenue lift: new locations or services take time to ramp up
- Delayed ROI on equipment: high upfront costs with slower payback
- Staffing ahead of demand: payroll increases before revenue catches up
- Insurance/payment delays: especially in medical and dental practices
👉 Even strong, stable businesses can feel pressure when growth outpaces cash flow — and that’s when additional financing starts to layer in.
The opportunity for brokers is to align that growth with the right financial structure before it creates strain.
🏗️ Construction & Real Estate (10%)
How they use funding:
Construction businesses operate on project-based cash flow — not steady income.
Funding is used for:
- Materials and labor upfront
- Equipment purchases and rentals
- Bridging gaps between project milestones and payments
Key moments to watch:
- Delayed client payments: especially at key project milestones
- Overlapping jobs: starting new projects before prior ones are fully paid out
- Cost overruns: rising material costs or unexpected site issues
- Cash tied up in progress: revenue exists, but hasn’t been realized yet
👉 These merchants often fund to keep projects moving — but when timelines slip or payments lag, obligations can start to pile up quickly.
That’s when the right move isn’t more funding — it’s a better structure.
đźšš Transportation & Freight (8%)
How they use funding:
This sector relies on financing to manage the gap between delivery and payment, where cash flow timing is everything.
Funding is used for:
- Fuel and ongoing maintenance
- Driver payroll
- Bridging receivables and delayed invoices
Key moments to watch:
- Slow-paying clients: long receivable cycles strain working capital
- Rising operating costs: fuel, insurance, and repairs are cutting into margins
- Increased volume without faster payments: more work, but cash still lags
- Breakdowns or unexpected repairs: immediate costs with no delay
👉 What starts as short-term support can quickly turn into ongoing reliance.
For brokers, the opportunity is to step in early and keep cash flow aligned — not chasing it.
The Pattern Brokers Need to Recognize
Across every industry, the pattern is the same:
What starts as strategic use of capital
can gradually turn into dependency
and eventually lead to stacking.
At Nexi, we see this pattern play out every day across the portfolios brokers bring to us.
The brokers who win in the long term aren’t focused on transactions.
They’re thinking in trajectories.
They take a longer view — working in partnership with their merchants, not just funding them in the moment.
They’re:
- Recognizing early signs
- Understanding industry-specific behavior
- Acting before pressure compounds
Where Nexi Fits In
At Nexi, we focus on helping brokers reset the situation — not just fund the next deal.
Our Reverse Consolidation weekly purchase program is designed to:
âś… Provide cash flow to pay off multiple MCA obligations
✅ Reduce total weekly remittances — often by up to 30%
âś… Restore breathing room for the business
But our approach goes beyond the structure itself.
We take a long-term view — not just in how we fund, but in how we support our brokers and their merchants through changing conditions, including evolving regulations and real-world pressure points.
Because the goal isn’t just approval.
It’s sustainability.
And when challenges come up — as they always do — we don’t default to “no.”
We say:
“Let’s find a way.”
Closing Thought
Every industry has its patterns.
Every broker sees those moments.
The difference is recognizing them early and acting on them.
👉 If you know the signs, you know the right moment — let’s talk.
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