- Business Classification Code. It is critical NOT to rush the process or you may end up risking the chance of being declined for credit. Before getting registered with the major business credit bureaus all the lender compliance items must be completed including your company’s business classification code.
There are two types of codes used:
- Standard Industrial Classification Code (SIC) and
- North American Industry Classification Code (NAICS)
Both of these codes are designed to classify what type of industry your company is involved in. This allows lenders, suppliers, and creditors to quickly identify the nature of your business and to determine whether or not you are involved in a high risk industry. This is why it is so important to select a code that does NOT put your company in a high-risk category. Unfortunately, some industry codes trigger red flags with creditors such as real estate, travel, automobile sales, restaurants, and dry cleaners.
For example, if you plan on investing in real estate then you will want to make sure that the company you build credit on is NOT “real estate investing.” Most banks will automatically turn you down because this is a high risk category. Your company can still invest in real estate but you may have to set up a business that does business development, business management, business consulting, marketing & advertising, training and development, etc. and then operate your real estate investments from a separate division or company.
Once you have selected the right code for your business you will be ready to apply for your Dun and Bradstreet Number (see Business Credit Bureaus in our process).Be sure to record your codes because this will be required on many credit applications as part of the underwriting process. To select an SIC and NAICS code go to siccode.com/naicsearch.php web site for details.
7 Steps to Our Ultimate Business Credit Building System:
[learn_more caption=”Business Questioner and Evaluation:”]
- What type of business credit funding will I receive for my business? Cash or vendor lines?
- How much funding will I receive?
- How fast will I receive the funding?
[/learn_more][learn_more caption=”Personal Credit Training”]
- Personal Credit Repair
- Comprehensive Budgeting
[learn_more caption=”Compliance Process”]
- Separate Legal Entity
- Initial List Filed
- Business Address (combine 4 and 5)
- 411 Listing
- Local Phone
- Business License
- Web Site
- Fax Number
- Business Plan
- Bank Rating
- Business Classification Code
[learn_more caption=”Business Credit Bureaus”]
- D&B® set up
- Steps to Report to D&B®, Corporate Experian® and Corporate Equifax®
[learn_more caption=”Cash Funding and Vendor Lines of Credit”]
- Funding Specialist
- Funding Options
- Starter Vendors & Applications
- Vendors for Office Supplies, Marketing, Print & Applications
- Vendors for Building & Industrial Supplies & Applications
- Revolving Credit Accounts & Applications
- Revolving Accounts for Office Resources & Supplies
- Revolving Accounts for Building & Décor Supplies
- Revolving Accounts with No Personal Guarantee
- Additional Vendors
[learn_more caption=”Business Credit Coaching”]
- Certified Business Credit Coach
- Contact information & Hours
[learn_more caption=”Business Credit Training and Support”]
- The 55 Secrets to Secure Business Credit (CA$H) for Your Business AND Keep
- 100% Ownership of Your Company
- The 29 Credit Score and Repair Secrets, Plus 10 Bonus Secrets to Save Your Home
- CEO Scott Letourneau’s “Golden Rolodex” of Business Credit Vendors & Resources
- Business Credit
- Triple Overlap
- Joint Ventures
- Raising Money
- Incorporate Webinar
- Business Credit Webinar
- Call- in-days with Scott Letourneau