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Low and High Risk SIC Industry Codes for Business Credit: Get the Secrets of Which SIC Codes Get You Denied

Janet Gershen-Siegel
October 19, 2022
Which SIC Codes Get You Denied Credit Suite

What are SIC Codes – Which Will Get a Business Funding Denial?

Have you ever wondered which SIC codes get you denied? Wonder no further – we have the information you need.

But before we go any further, just what is a SIC code, anyway?

Which SIC Codes Get You Denied: SIC Codes List

The SIC Code (Standard Industrial Classification) is a part of a business classification system.

A Standard Industry Classification code, or SIC is a four digit numerical code which is assigned by the U.S. government to businesses, to make it easier to identify the primary activity of the business. It is an indicator of the kind of business a company is in.

NAICs Codes Get You Denied Credit SuiteThe Securities and Exchange Commission developed this system. For example, if your company makes tires and/or inner tubes, then your SIC code would be 3011.

The numbers are somewhat intelligent in that there are ranges of industry groups which correspond to the first of the four digits, such as manufacturing corresponds to four-digit SIC codes which start with either a 2 or a 3.

The combination of the first and second digits then defines the major industry group. In our example, 30 will designate ‘Rubber and Miscellaneous Plastic Products’. So this can lead to the question: how many SIC codes are there?

Low Risk Industry Codes

Lower risk industry codes include:

  • 3089 Plastic Products, Not Elsewhere Classified
  • 4813 Telephone Communications, Except Radiotelephone
  • 5149 Groceries and Related Products, Not Elsewhere Classified
  • 5399 Miscellaneous General Merchandise Stores
  • 5699 Miscellaneous Apparel and Accessory Stores
  • 6411 Insurance Agents, Brokers and Service
  • 7213 Linen Supply
  • 7371 Computer Programming Services
  • 7389 Business Services, Not Elsewhere Classified
  • 7929 Bands, Orchestra, Actors, and Other Entertainers and Entertainment Groups

How to Find SIC Codes

You may be wondering: how do I find SIC codes? There is a SIC codes list. The SIC code’s digits are grouped to identify the industry and industry group. The first two digits in the SIC code identify the major industry group, the third digit identifies the industry group and the fourth digit identifies the industry.

In fact, the Internal Revenue Service will use the SIC code that you select. This is in order to determine if your business tax returns are comparable to the other businesses in your industry. Hence, if your tax deductions do not reasonably resemble the other businesses in your industry, your business could be audited.

Furthermore, some companies may be labeled high-risk when they do not select the right SIC codes to classify their company. However, if you understand how the business classification system works, then you can choose the correct code on your first try.

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Which SIC Codes Get You Denied: North American Industry Classification System Codes (NAICS)

The North American Industry Classification System (NAICS) is another business classification code.

This code classifies business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy. NAICS industry codes define establishments based on the activities in which they are primarily engaged.

The NAICS puts out its own list of high-risk and high-cash industries. Higher risk industries on the list include casinos, pawn shops, and liquor stores, but also automotive dealers and restaurants. One of the bigger differences in the two systems is the NAICS does not distinguish between online and offline or hybrid businesses in an industry.

OSHA requires injury and illness reports from certain high-risk industries.

SIC Codes Search: Restricted industries (automatic decline) include:

  • Ammunition or Weapons Manufacturing; wholesale and retail.
  • Bail Bonds
  • Check Cashing Agencies
  • Energy, oil trading, or petroleum extraction or production
  • Finance: (Federal Reserve Banks, foreign banks, banks, bank holding companies,
    loan brokers, commodity brokers, security brokers, mortgage brokers, mortgage bankers, mortgage companies, bail bond companies, or mutual fund managers).
  • Gaming or Gambling Activities
  • Loans for the speculative purchases of securities or goods.
  • Pawn shops
  • Political campaigns, candidates, or committees
  • Public administration (e.g., city, county, state, and federal governmental agencies).
  • X-rated products or entertainment

SIC Codes Lookup: High-Risk Industries (subject to stricter underwriting guidelines):

  • Agriculture or forest products
  • Auto, recreational vehicle or boat sales.
  • Courier services
  • Computer and software related services.
  • Dry cleaners
  • Entertainment (adult entertainment is to be considered restricted).
  • General contractors
  • Gasoline stations or convenience stores (also known as c-stores)
  • Healthcare; specifically nursing homes, assisted living facilities, and continuing care retirement centers.
  • Special trade contractors
  • Hotels or motels
  • Jewelry, precious stones and metals; wholesale and retail.
  • Limousine services
  • Long distance or “over-the-road” trucking.
  • Mobile or manufactured home sales.
  • Phone sales and direct selling establishments
  • Real estate agents/brokers
  • Real estate developers or land sub-dividers
  • Restaurants or drinking establishments.
  • Software or programming companies
  • Taxi cabs (including the purchase of cab medallions) .
  • Travel agencies

Which SIC Codes Get You Denied: Between an NAICS Code and SIC Business Codes – Which Code is in Use?

They both are. However, the SIC code system is phasing out and NAICS will replace it. But for the moment, assume they are both in play, as the transition has not yet finished. These coding systems are similar but not identical.

But which SIC codes get you denied?

Lenders, banks, insurance companies and business credit reporting agencies use the two business classification systems to determine if your business is a high-risk industry classification. This means that you could get a denial for a loan or a business credit card based on your business classification.

Some SIC codes can trigger automatic turn-downs, higher premiums, and reducing credit limits for your business. This means it’s harder to get business funding.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Which SIC Codes Get You Denied: Industry SIC Codes and Risks

When considering any aspects of a business, risk has to be a major factor. There are inherent issues in every single industry. Crops fail, or lease terms go up too high so a company has to move. Or tariffs or even a war make importing less reliable. And don’t forget about pandemics.

But some businesses are considered to be risky by their very nature. And this is the case even if everything else goes off like a hitch and the business is prospering. Risk is inherent within these business types. Therefore, even if your business doesn’t feel risky, it just might be anyway.standard industrial classification

The SIC Code List: Why Risk Matters

The biggest reason why risk matters has to do with funding. There are several industries where lending institutions are hesitant to do business. In those particular cases, there are stricter underwriting guidelines. But at least a company can get funding.

Not so with other industries. In some industries, no funding is available at all. As a result, those businesses will need to find other solutions for financing. These solutions can include, potentially, crowdfunding, angel investors, venture capital, business credit building and more.

Still, a lot of businesses would rather work with lenders. But where are lenders’ ideas of the magnitude of risk coming from?

Which SIC Codes Get You Denied: Real Injury Risks According to the CDC

In 1999, the Centers for Disease Control published an article on risks in small businesses. This article contains information on SIC codes. And it gives information on injuries associated with the codes. While this is not the true means by which lending institutions decide on risk, it is still of interest. And it can demonstrate what may be behind some of the reasoning.

Part of the calculation of risk comes from occupational injuries.  These are such as those noted in the CDC report. But the other side of the risk coin is occupations which are high in cash transactions.

After all, a pawn shop might not have much of a specific risk of injury at all. But the large amounts of cash normally associated with one mean that it can be a tempting target for thieves. So retail SIC codes can sometimes be high risk, as much as other industries’ US SIC codes.

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Which SIC Codes Get You Denied: Choosing Better SIC Industry Codes

If you’re asking, ‘What is an SIC Codes for Businesses?’, then check out this section.

The choice of SIC code is yours. For automotive sales, for example, you would normally select 5511, ‘Motor Vehicle Dealers (New and Used)’. But most lenders will automatically turn your business down because of the high-risk factor within the business classification name.

Of course you want to be honest with your SIC coding classification. But if more than one SIC code could apply, that’s a good thing. Because there is nothing wrong with choosing the SIC code which will not get you denied by lenders.

Therefore, if you want to have your automobile sales company, you need to develop a different business code. It should be one which has auto and home supply stores, motor vehicle parts and accessories, or car washes written in the actual business code. That way, you can still operate your real business of “automotive sales” without actually being considered a risk factor.

Your auto sales business can conceivably become one of the low risk industries for business credit!

There is nothing deceptive or dishonest about doing this. Swapping high risk SIC codes for lower risk codes is fine if the code applies. And it just might make your business more fundable.

Check the SIC code database for more information on these codes.

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Choosing Lower-Risk Business Names

It goes beyond coming up with the perfect memorable name which is easy to spell and say, and evokes your company’s mission statement. Because there’s also the matter of risk. Adding a risky business type into your business name will trigger financing denials. Knowing which SIC codes get you denied is helpful here.

For example, bail bonds are a restricted industry. So are many types of financing business types, and check cashing agencies. Hence naming your venture Chico’s Bail Bonds is a recipe for a delay if not an outright denial.

But it is the same as with choosing a lower-risk SIC code when two apply. There is nothing deceptive, illegal, or unethical in naming your company Chico’s.

Will this more generalized name guarantee funding for your business venture? Of course it won’t. But at least your business will not be automatically turned down before you can make your case for funding.

And of course a better business credit score will help you make an even better case for funding.

Standard Industrial Classification Takeaways

Choosing the incorrect SIC codes could end up costing your business and get you labeled as high-risk. And this could directly impact your insurance premiums, your financing ability, and even your credit limit recommendations. This small error of choosing the wrong SIC codes could cost your business in the future.

Therefore, be sure to do your research before you select any SIC codes for your business. Because you might just end up choosing which SIC codes get you denied. And it does not have to be that way.

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    1. I am guessing it’s either:
      488490 Other Support Activities for Road Transportation Inspection or weighing services, truck transportation
      or
      488991 Packing and Crating Preparing goods for transportation (i.e., crating, packing)

      And you may do better with packing. It’s hard to say. Higher risk tends to come from either a higher chance of injury or a higher chance of robbery. I *suspect* that the second code above would be considered to have a lower risk of injury.

      But make sure that the code actually fits what you’re doing, of course.

  1. I want to start a multi media platform as a parent company how do i create a low risk business name and sid ???

    1. Pick whatever works the best for you. For SIC, it looks like you mainly have one choice unless you want to drill down into what multimedia means (Streaming? TV? Radio? etc.). NAICS has more options, see below.

      As for a name, go generic, such as your name, e. g. Joe’s. It doesn’t have to be called Joe’s Multimedia Platform. It can just be Joe’s. If you want something catchier, then you’ll need to do some research. Combined names seem to do well, like Netflix but again – do your research.

      SIC code: 2741 Miscellaneous Publishing Multimedia educational kits: publishing and printing, or publishing only

      NAICS: 541830 Media Buying Agencies Media buying agencies
      518210 Data Processing, Hosting, and Related Services Media streaming services
      541910 Marketing Research and Public Opinion Polling Broadcast media rating services
      541850 Outdoor Advertising Out-of-home media (i.e., display) advertising services

  2. Im forming a box trucking company to do business intrastate and interstate can my company have 2 sic codes or just one or should i pick a main sic to represent my L.L.C.

  3. What would you say is a good one for getting into real estate & ecomm, looking to start a short term rental and ecomm business but I see that real estate isn’t one of the best codes to have.

    1. Hi! Great question.

      I would suggest something more in the ecommerce area. That one may be SIC 7389 Business Services, Not Elsewhere Classified.

    1. Looks like you’re probably okay as most of the examples listed are benign (like sales of gemstones). It does also list the sale of fireworks, though. Another possibility might be 5961 (https://www.naics.com/sic-industry-description/?code=5961) because if you’re selling via what is essentially an online catalog, then I don’t see any reason why it wouldn’t apply. Great question!

  4. I am planning to do Airbnb Arbitrage and also buy pull behind campers and rent them out, what would be a good code to do for these? Something with tourism/lodging?

  5. I am planning to do Airbnb Arbitrage and also buy pull behind campers and rent them out, what would be a good code to do for these? Something with tourism/lodging? Also, do you actually pick the code yourself or does it get generated based on the industry you choose for your LLC?

    1. My understanding is that you select the codes.

      A few ideas:

      • Travel Trailers and Campers Truck campers (slide-in campers) (SIC 3792) and Travel Trailer and Camper Manufacturing (NAICS 336214)
      • Hotels and Motels (Tourist cabins) (SIC 7011) and All Other Traveler Accommodation (NAICS 721199)

      I suspect the first one wouldn’t fit as closely so you may need to go with the second one.

  6. Hi! We manufacture car wash equipment and supplies (Car wash soaps, detail-products etc.) what is the best SIC and NAICS code for our business? Appreciate the help! Thank you.

    1. Hi and thank you for commenting!

      NAICS does have a code for car washes and car detail shops – 811192 and the comparable SIC code is 7542 for carwashes Cleaning and polishing (detailing) new autos for dealers on a contract or fee basis.

      I realize these aren’t quite right; just trying to figure out how to approach this.

      For soaps, SIC has 2869 Industrial Organic Chemicals, Not Elsewhere Classified Naphthenic acid soap and
      2841 Soap and Other Detergents, Except Specialty Cleaners Soap: granulated, liquid, cake, flaked, and chip

      NAICS has 325612 Polish and Other Sanitation Good Manufacturing Saddle soaps manufacturing and
      325199 All Other Basic Organic Chemical Manufacturing Metallic soap manufacturing and
      424690 Other Chemical and Allied Products Merchant Wholesalers

      The more I look at this, the more I think NAICS 325612 could work, as it refers to “Automobile polishes and cleaners manufacturing” and that should be right up your alley!

      The comparable SIC code is 2842. It includes “Polishes: furniture, automobile, metal, shoe, and stove… Automobile polish… Dusting cloths, chemically treated… Metal polish… (and) Stain removers”.

      The car wash codes are just for washing, etc.

      So I think you can go with NAICS 325612 and SIC 2842.

      Thank you for the interesting challenge, and best of luck with your business!

  7. Thank you, Janet! Our primary business is Car wash Equipment Manufacturing, the soaps and detail supplies is only secondary. In our Experian report, our SIC Code is 5087-Service Establishment & Supplies; NAICS Code is 423850-Service Establishment and Supplies Merchant Wholesalers. Experian consider this code as “RISK INDUSTRY.” Could you please let me know what will be the best SIC/NAICS code (low-risk) for our business? I really appreciate your advice! Thank you!

    1. Hi Cristine!

      Okay, so I think I’ve read every NAICS code out there (heh!) and could 333318 Car washing machinery manufacturing work? I’m not certain if it would be any different in terms of risk, but it seems as if it should apply.

  8. Hi Janet,

    For my Airbnb and ecomm/ dropshipping LLC, you recommended SIC 7389 Business Services, Not Elsewhere Classified a while ago. Someone mentioned me adding NAICS 454110. I wanted to confirm if this is still the best one and if there are any implications adding on 454110. Is that code considered high-risk?

    1. Hi!

      Right now, 454110 isn’t on the NAICS list of high risk codes. However, I caution you that the list is from 2014, and never seems to have been updated (and it’s poorly laid out in its present form, anyway).

      You’re probably fine. I wish they would come out with a newer list already, so I could tell you something more definitive. Best of luck with your business.

  9. Hi!
    My company consist of me selling items through vending machines. I sell a wide variety of items, from eye lashes to food and beverages. My company name is Refresh-N-Go Vending Machine Services. Seems from reading, my company will automatically be labeled high risk. Should I change the name or what sic code should I use? Need Help….

    1. Yeah, the NAICS (code 454210) is listed as high risk because it’s a cash-intensive business. SIC is 5962 Automatic Merchandising Machine Operators.

      Do you manufacture any of the stuff you sell? That could potentially allow you to work with a better NAICS/SIC code. I would probably change the name, too – you can probably just take Vending Machine out of the name.

      Great question, best of luck with your business!

    1. Hi, great question!

      I think 531210 Offices of Real Estate Agents and Brokers is going to be your best bet for NAICS. For SIC, the comparable code would be 6531—Real Estate Agents and Managers. Since both codes refer to real estate agents directly by title, I doubt there’s any other way you could go.

      Note: the NAICS list of high risk codes doesn’t include 531210. See: https://www.naics.com/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf. But that list is a 2014 upload on that site, and there doesn’t seem to be anything more recent which is even close to official.

      On the other hand, it’s hard to see the real estate agent biz as being anything but risky, considering that you could be working in sketchy areas or tripping in unfamiliar places, or even assaulted by a client.

      If traditional lenders are going to say no, then it’s time for some internet sleuthing. A quick Google search for loans for real estate agents drew a good 120 million hits. But of course you should check a few things, e.g.:

        Do they lend to real estate agents or just to real estate investors?
        What does the Better Business Bureau say about them?
        Is your local Chamber of Commerce and/or industry association familiar with them? If so, what do they say?

      And then proceed accordingly. If you’ve found a reputable lender and they don’t care about SIC and/or NAICS codes, then the codes kind of don’t matter….

      Best of luck with your business!

  10. I’m starting a transitional/shared living house like a group home. My SIC code is 8361 but Experian business says it’s high risk. What are your thoughts?

    1. Hi, and thank you for asking.

      I checked, and you’d also be under NAICS 623990 Other Residential Care Facilities (Group homes for the disabled without nursing care). While that code isn’t on the NAICS hit list of high-risk codes, the high-risk code list is from 2014 and highly unlikely to be updated any time soon (I asked!). I get the feeling you may not be able to get out of it being considered high-risk. Even the most fantastic residents can trip and fall, after all.

      But SIC and NAICS codes matter a lot more to traditional lenders than they do to online lenders. I did a quick Google search, looking under loans for operating a group home. Now, I can’t vouch for terms, quality, reputation, etc. But that may be the best way to go. I would also see if you can get grants or other funding from city or state government, things like that.

      If you’ve got good personal credit (or can partner with someone who does), our Credit Line Hybrid should be on the table. I know the finance folks and, so far as I’m aware, SIC/NAICS codes aren’t a part of the qualifying process.

      Best of luck with your business—and thank you for doing it! I hope it’s very rewarding for you and your team. 🙂

  11. Hi, I sell items online for women such as slipoers, pajamas etc. right now they have
    SIC Code:
    5961 – Catalog & Mail-Order Houses
    NAICS Code:
    454110 – Electronic Shopping And Mail-Order Houses
    But Experian says risk associated with industry. What codes should I be using that are not high risk?

    1. Hi,

      I wonder why they think it’s high risk. You don’t take cash (because you just plain can’t), and no customers can come to your place of business, so they can’t fall in your purely online store. About the only thing I can think of is Experian thinks employees could be injured during the fulfillment of orders? After that, I’ve honestly got nothing. 448120 (Women’s Clothing Stores) is on the official High Risk list, so that’s out.

      But oddly enough, 448110 (Men’s Clothing Stores) is not on the official High Risk list. And 448130 (Children’s and Infants’ Clothing Stores) isn’t on the High Risk codes list, either. But that’s the NAICS. My suggestion would be to, potentially, see if either the Men’s Clothing or Children’s Clothing codes could fit (no pun intended).

      I also just wrote to Experian to ask if they could share their criteria or their high risk list, because the very last thing I want to do is steer you wrong.

  12. Hi, my other business is a office and residential cleaning company with SIC Code: 7349-Building Cleaning & Maintnce Svcs, Nec
    Naics Code – 561790-Other Services To Buildings And Dwellings
    Experian says risk to business industry. What codes do you recommend?

    1. Now for this business, I can see why Experian would call it high risk. Fumes from cleaning fluid can trigger allergic reactions, and wet floors can cause slips.

      I’m not so sure if 561720 (Janitorial Services) would be any better.

      So while Experian may be giving you a hard time, it might just be better to think outside the box with this. NAICS and SIC codes do matter, but the bottom line is that it’s the SBA and traditional lenders (think banks and credit unions) which care about the codes the most. Hence I did a quick online search for business loans for janitorial companies and there were over a million hits on Google.

      So there are options out there. These are companies which either specialize in loaning to cleaning companies or include it as one of many lending products they offer.

      With any lender you don’t know, always check the Better Business Bureau and/or ask around with your peers, to make sure you’re not getting in over your head with a fly by night operation.

      One provider I recognized immediately was OnDeck. Since we’ve reviewed OnDeck, you might want to check that out beforehand if you decide to reach out to them for financing.

      Best of luck with your businesses!

  13. Hi Janet!

    Can you provide some guidance on the best code for Business Coaching for young entrepreneurs? I know business consultation seems to be on the high-risk list.

    1. Hi Nathan!

      Eek, this is a popular topic today.

      Okay, I was thinking about it and coaching, would you say it’s like education? You don’t have a curriculum, I get that.

      But you may be able to go with 611430 (Professional and Management Development Training), which the NAICS specifies is “professional development training”.

      I’m not so sure it’ll make banks happy, though. I suspect consulting of any sort is seen as being high risk simply because there are few to no barriers to entry to the industry. Hence there are people (not you, I’m sure) who have no idea what they’re doing and the lender understandably is skittish. They tar everyone in the biz with the same brush.

      So I did an online search for financing for business consultants and got millions of hits. Of course, always vet a potential lender, by checking with the BBB, Yelp if it applies, and asking around. The last thing I want to happen is for you to get ripped off.

      One of the sites on the first page was Fundera. <-- That link will take you to our Fundera review, and we liked them. There was very little that we felt was a disadvantage. Another option, if you've got good business credit or can partner with someone who does, is our Credit Line Hybrid. Approvals for the CLH have nothing to do with NAICS code so yours wouldn’t matter in that case.

      Best of luck with your business!

  14. My business is concierge could be anything from transportation, travel arrangements, personal shopping, errands, you name it what would be the best non high risk code that all categories can fall under

    1. Hi and thanks for asking.

      The NAICS has one specific code for concierge services, and it should be an umbrella under which you could put pretty much any concierge service (which is the nature of the biz anyway, that you’d potentially be called upon to do a bunch of unrelated things).

      The NAICS code is 812990 (All Other Personal Services), which the NAICS specifically says is for “concierge services”.

      I’m not so sure it’ll make lenders happy, though. I suspect concierge work is seen as being high risk simply because there are few to no barriers to entry to the industry. Hence there are people (not you, I’m sure) who have no idea what they’re doing and the lender understandably is skittish. They tar everyone in the biz with the same brush.

      So I did an online search for financing for high risk businesses and got some hits. Of course, always vet a potential lender, by checking with the BBB, Yelp if it applies, and asking around. The last thing I want is for you to get ripped off.

      One of the sites on the first page was Biz2Credit. <-- That link will take you to our Biz2Credit review. Another option, if you've got good business credit or can partner with someone who does, is our Credit Line Hybrid. Approvals for the CLH have nothing to do with NAICS code so yours wouldn’t matter in that instance.

      Best of luck with your business!

  15. I own a boutique / salon and retail hair products as well as mentor students and hair loss center. I’m trying to build business credit. I also have a s-Corp named kingdom business 7 and all of the codes are high risk. Which code do you suggest please help

    1. Hi!

      Hair salons are an issue because (a) they’re places where some percentage of the sales are in cash, so they can be a target for thieves and (b) electricity and water near each other means the potential for personal injury to either employees or customers.

      However, per the official 2014 High Risk/Cash Intensive NAICS Industries List, beauty salons and the like aren’t directly listed. But that list is old, and lenders certainly have their own ideas as to what constitutes a high risk industry. And I just don’t think salons are going to end up as anything but high risk. I looked up hair loss and mentoring (mainly riffing off it as being a type of education) but came up empty.

      But I’m not so sure it’s going to matter that much, anyway. I suspect it’s time to look past banks for financing.

      So I did an online search for funding for salons and got some hits. Of course, always check up on a potential lender, by checking with the BBB, Yelp if it applies, and asking around. The last thing I want is for you to get ripped off.

      One of the sites on the first page (these were all paid ads) was Biz2Credit. <-- That link will take you to our Biz2Credit review, and we liked them. Another lender on the first page was Fundbox. In the interests of full disclosure, we do have an affiliate relationship with Fundbox.

      Another option, if you have good business credit or can get a credit partner who does, is our Credit Line Hybrid. Approvals for the CLH have nothing to do with NAICS code so yours wouldn’t matter in that case.

      Best of luck with your business!

  16. I have a mortgage brokerage, tax preparation and credit repair business and I know they are all high risk businesses. I have been getting notices left and right about denials but I tried to put it under a management code to avoid issues. Do you have any suggestions about how I can structure this to avoid this after all that I have put in to establish the business credit I do have? Worst case scenario im thinking of making the parent company my name enterprises and having everything else under it.

    1. Hi!

      Looks like your NAICS code should probably be: 522310 (Mortgage and Nonmortgage Loan Brokers), which the NAICS specifies as “brokers’ offices, mortgage”.

      If you’re getting denials (that code isn’t on the NAICS high risk list, but lenders have their own ideas), then it’s time to go past traditional lenders for funding.

      I ran a search on funding for mortgage brokers and there were very few hits. For those I did find, I didn’t recognize the lenders. This doesn’t mean those are necessarily “bad” lenders, but you should vet them by checking the Better Business Bureau and even Yelp if it’s appropriate.

      I would also suggest other ways of financing. Such as, for example, alternative financing. Another option, if you’ve got good personal credit or can partner with someone who does, is our Credit Line Hybrid. Approvals for the CLH have nothing to do with NAICS code so yours wouldn’t matter in that case.

      Best of luck with your business!

  17. I do private Speech and Debate Coaching, teacher training, speaking, etc. I noticed it lists me as unknown high risk. What can I change it to because everything else looks good.

    My other company is educational consultant and again it says high risk, any ideas for that one also.

    1. Hi,

      I wonder if NAICS 611430 Professional and Management Development Training (Professional development training) would work for you.

      It’s not on the NAICS high risk list and I’m having trouble seeing where it could be risky unless there’s a low barrier to entry into the field.

      If you need to have training or licensing, then I just don’t see it as being a risky profession. Hope I’m not missing anything!

      So you may be okay with changing to the above NAICS code and see what happens.

      Best of luck with your business!

  18. Hello. I sell custom items such as custom clothing and custom acrylic paintings. What code do you suggest I use to be on the low-risk list? Thank you in advance.

    1. Hi and thanks for asking!

      One of the issues with the NAICS is that clothing codes are kind of all over the place. Looking for a code that could fit, I found:

      315190 – Other Apparel Knitting Mills
      448190 – Other Clothing Stores <-- this one is the on the NAICS list of high risk codes. I caution you that that list is from 2014 and has not been updated.

      For more information on whichever one would work better, it’s best to go to the NAICS website and click on the code link and just read what it says, e.g. NAICS 315190. And then from there you can just search for another code and keep going.

      Moving onto art, I found:
      323111 – Commercial Printing (except Screen and Books)
      323113 – Commercial Screen Printing
      541430 – Graphic Design Services (seems the least likely code to apply)

      But there don’t seem to be codes for professions such as portrait artists or the like.

      So, to my mind, if the common thread (no pun intended) between these two types of tasks is screen printing, then 323113 would seem to fill the bill.

      While SIC and NAICS codes have their place, the main issue is whether you can get $. But that’s mainly a question for traditional lenders.

      So I Googled stuff like business loans for artists.

      Here are a few:
      https://www.theentertainmentsmallbusinessalliance.org/sba-community-advantage-loan-for-the-arts-and-entertainment-industry.html
      https://www.kiva.org/lend-by-category/arts
      http://creativesandbusiness.com/1459-financing-for-artists-%E2%80%93-an-introduction/

      And there’s also our Credit Line Hybrid, if you’ve got good personal credit or can partner with someone who does. Approvals for the CLH have nothing to do with NAICS code so yours wouldn’t matter in that case.

      Best of luck with your business!

  19. Hello. I have a masters degree in Education and I would like to start a business educating other adults on different topics and I’m also consulting businesses on how to market and streamline their business. I see here from other comments and responses that I may be able to go with 611430 (Professional and Management Development Training), which the NAICS specifies is “professional development training”. But it may not make banks happy. Is there a low risk code that shows I have some “advanced” training to make it low risk and the banks happy? I was thinking about Consulting of some sort.

    1. Consulting is more likely to go under a high risk bucket because pretty much anyone can call themselves a consultant. I think the code you picked is going to be the one that best suits your profession.

      As for making banks happy, they’re not the only lenders/sources of $ out there. We have a guide on how to get cash for your business, and banks are far from our first choice.

      Best of luck with your business!

  20. Hey I make and sale my own brand and customize clothing screen print , DTG , Shirt press and retail can u please help me with th best naics / sic code for my business please and thank you a lot in advance !

    1. Hi and thanks for asking!

      One of the issues with the NAICS is that clothing codes are kind of all over the place. Looking for a code that could fit, I found:

      323113 – Commercial Screen Printing
      315190 – Other Apparel Knitting Mills
      448190 – Other Clothing Stores <– this one is on the NAICS list of high risk codes. I caution you that that list is from 2014 and has not been updated.

      For more information on whichever one would work better, it’s best to go to the NAICS website and click on the code link and just read what it says, e.g. NAICS 315190. And then from there you can just search for another code and keep going.

      So, to my mind, if screen printing is your main function, then 323113 would seem to fill the bill.

      While SIC and NAICS codes have their place, the main issue is whether you can get $. But that’s mainly a question for traditional lenders.

      So I Googled stuff like business loans for screen printing, and business loans for t shirt businesses.

      I found some but did not recognize the ones on the first page of results. Therefore, I suggest you check them out with places like your local Chamber of Commerce, the Better Business Bureau, possibly Yelp and Google Reviews, too. The last thing I want to do is steer you wrong!

      And there’s also our Credit Line Hybrid, if you’ve got good personal credit or can partner with someone who does. Approvals for the CLH have nothing to do with NAICS code so yours wouldn’t matter in that case.

      Best of luck with your business!

  21. I’m in the process of open a business account with navy federal credit union.
    Want to know what NAICS code I use for.Cargo van,expeditor .Driving inner city and out of city and is it’s a risk.

    1. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. If you have more questions you can call us at 877-600-2487 or schedule it here: https://crdt.st/udZra to get a free consult.

  22. I have a bookkeeping business and I plan to offer tax preparation, CFO services and other services in the future. DUNS & Bradstreet have my SIC code as 87219901 Billing and bookkeeping service & NAICS code 541219 Other Accounting Services. The banks consider my industry high risk. What codes can I use so my business isn’t labeled as high risk to lenders? Thank you.

    1. Hi Kale,here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. If you have more questions feel free to call us at 877-600-2487 or schedule a free consult at https://crdt.st/udZra

    1. Hi Pedro, I’m not able to tell you the exact code to use but here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. If you have more questions feel free to call us at 877-600-2487.

  23. Hello I have a Online custom wig making business. So far the only code I found that applies is sic code 5699. Do you have any info if I’m correct and is this considered high risk?

    1. Hi Simone, here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. If you have more questions feel free to call us at 877-600-2487 or schedule a free consult at https://crdt.st/udZra

    1. Hi Trenisha, thanks for your comment. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps. If you have more questions feel free to call us at 877-600-2487 or schedule your free consult at https://crdt.st/udZra

  24. I am in Wholesale Real estate, my business partner and I are opening a new LLC. We were thinking of SIC code 87429904 General management consultant and either 541618 Other Management Consulting Services or 541611 Administrative Management and General. Management Consulting Services. We were planning to position our company as a consulting company. Not sure if this makes sense. Any input will be greatly appreciated.

    1. Hi Evelyn, you are going to be pretty safe from a lending and business credit standpoint for any of those. Have you checked to see if they are high risk or not? Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.You can also call Credit Suite at 877-600-2487 for free consult if you more questions.

    1. Hello Matti, here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.If you have more questions you can call us at 877-600-2487 or schedule a free consult at https://crdt.st/udZra

  25. I would like to trade then ultimately coach forex as a business and I know that the 532130 is high risk. What are my other options for an acceptable NAICS code?

    1. Hi Nate, I don’t have an alternative code you can use but here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.If you’re looking for more insights, here’s our Youtube Video on How to Avoid Risky NAICS Codes: https://www.youtube.com/watch?v=-eAdPBl7nYQ&t=1s

  26. Alfredo, your very kind in responding to everyone, thank you.
    May i ask, i have a traditional timber framed design & build (construction) business in the UK. Building timber frmaed outbuildings (i.e garages, guest accomodation etc). May i ask for a couple of recommedned codes please

    thank you
    Andrew

    1. Thanks for your comment Andrew. Apart from the NAICS list of high risk industries, there aren’t any “official” high risk codes. Experian and other places use these codes but they keep their methodologies confidential. As a result, it can be hard to figure out what the best code should be. Higher risk tends to be: (a) a higher chance of personal injury to employees and/or customers, (b) lots of cash transactions, and (c) a low barrier to entry for an industry. Dig into the NAICS site and see if you can find an applicable code which doesn’t fit any of those three criteria, and try it.
      But if it turns out that you’re still having issues, your NAICS code isn’t set in stone. Follow these directions on changing it: https://www.naics.com/ufaq/how-can-i-have-my-companys-naics-code-changed/. Hope this helps.

    1. Hi Jordan thank you for your comment. There is no “official” way to have a company’s SIC or NAICS code changed. Various Federal government agencies maintain their own lists of business establishments, and assign classification codes based on their own programmatic needs.

      Generally, the classification codes are derived from information that the business establishment has provided on administrative, survey, or census reports. For this reason, we recommend that you contact the agency that has assigned the code that you believe should be changed.

      For example, if you question the SIC or NAICS code contained on a form received from OSHA, you should contact the Department of Labor. For access to a list of Federal government agencies, visit this site. Link: https://www.naics.com/hrf_faq/how-can-i-have-my-companys-naics-code-changed/

  27. Hello, I have a online print on demand (no excess inventory made to order) Canvas print company that sells motivational art and ships to customers.What low risk sic codes can i use for funding. Here is a example of the type of business i have based off the link IKONICK.com

    1. Thank you for your comment Tone. There is no actually list for low risk codes all you have to do is to make sure you are not categorizing your business as high risk. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps and if you want to get a free business financing assessment you can call us at 877-600-2487 or schedule it at creditsuite.com/consult

  28. Hi, I just got my LLC and EIN. Before I apply for loans I want to use the best NAICS code. Its a car rental business which I found code 532111. I would like a more broad code to use to lessen any risk in getting turned down for a loan. Do you know a better code I can use?

    1. Thank you for your comment Oscar. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps. You can also get a free business finance assessment by calling Credit Suite at 877-600-2487.

    1. Thank you for your comment, I won’t be able to tell but here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps and if you want a free business financing assessment call us at 877-600-2487 or schedule it at creditsuite.com/consult

  29. Hello! Thank you for the article and the great responses! I am looking for the best code(s) for my LLC. Currently, I sell digital assets via Etsy, but I would like a code that will allow me to dabble in other areas as well, such as YouTube streams, affiliate marketing, etc. Also, if I decide to purchase existing businesses (laundromat, car wash, online diabetes supplies) would I need a separate LLC for each? Thanks!

    1. Thank you for your comment Christopher, I may not be able to choose a code for you but here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. As for your question if you need to have separate LLC for each business that you would like to purchase the answer is “Yes”. To learn more about business credit & financing you can call us at 877-600-2487 for free business financing assessment.

  30. Is consulting and/or coaching considered a high risk industry when it comes to establishing business credit and acquiring business loans? What are some examples of SIC codes that could be used for a consulting business that would be deemed low risk by business creditors?

    1. Thank you for your comment Brett. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.Hope this helps and if you want to get a free business financing assessment call us at 877-600-2487 or schedule it at creditsuite.com/consult.

  31. Alfredo literally pasted the same answer dozens of times. This doesn’t reflect well on Creditsuite’s customer service.

    1. It’s because I can’t choose or tell someone what should be their NAICS code because I am not an attorney to give a legal advice. We can only help determine but it’s the business owner’s responsibility. They know all the nuances of their business and can figure out how which code will best fit them. The steps I have been sharing as a response to the comments should at least help them determine and classify their business properly.

  32. Hi I want open up a financial solution business that will be offering credit restoration, tax preparing and offering business loans. what code would be best to use as low risk?

  33. HI,

    I am renting a room in my condo on Airbnb. Is 721310 the best NAICS code for me to use?

    Thank you

    1. We will not be able to tell for sure, our best recommendation is to counter check your business industry with NAICS list of high risk industries at naics.com. You can also watch this video of Ty where he talked about choosing the correct NAICS code for your business, hope this helps. Here’s the video link: https://youtu.be/uxDN9Ztt-dw

  34. I have a holding company with two subsidiaries. I plan to purchase houses, renovate and lease under one. I also will be purchasing condos as an airbnb under the other. Can you provide guidance on NAICS code for my situation?

    1. Hi Kim- here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.Hope this helps.

    1. Hi Ron, it will be both. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

    1. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps.

  35. Hello,

    I have a business that deals with live animal quarantines, breeding establishment, and bird shipments, to various locations around the globe. I work with Vets to accomplish the necessary Vet testing, and so forth for compliance. I’ve been in business since 2008 as an LLC, but I understand that under NAiCS code this would be considered “high risk”, as it does fall under the category of Agriculture. Is there a better code I could use such as “Business Services” that would make my line of work less risky under the NAICS coding or SIC system? Is
    Veterinarian services classified as high risk business?

    1. Hi Daniel, thank you for your comment. We can’t pick NAICS code for entrepreneurs but we put up guides how you can properly choose your NAICS code. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps.

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