From the course: Credit Secrets for Entrepreneurs

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Industry classification

Industry classification

From the course: Credit Secrets for Entrepreneurs

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Industry classification

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- When you start your business, there will be times when you see something on your business credit report called a Standard Industrial Classification code or SIC code. You could also see a North American Industry Classification System code, or NAICS code. These are codes created by the government to classify small businesses by the type of business. The SIC code is the older version of this classification system, and the NAICS code is the newer classification. This code is important for a couple of reasons. One is because some lenders will only lend to businesses in certain industries. The other reason is your business credit score can be calculated in comparison to other businesses in your industry. If you're a floral business for example, your payment history could be compared to other floral businesses to see how you're doing. So you want to make sure this is correct. When you get your business credit report for…

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