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NAICS 423840, industry

NAICS 423840: Industrial supplies merchant wholesalers

NAICS 423840 is the industry code for industrial supplies merchant wholesalers. Use it on loan applications, tax forms and registrations. Lenders price it on the business's own numbers rather than an industry program.

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What 423840 covers

This code covers merchant wholesalers of industrial supplies, such as bearings, power transmission parts, abrasives, cutting tools, hose, gaskets and safety supplies.

Included in this code

  • Bearings and power transmission
  • MRO supplies
  • Cutting tools and abrasives
  • Industrial hose and fittings
  • Safety supplies

Not this code

Businesses that use 423840

MRO distributorBearing distributorSafety supply wholesaler

Financing for this trade

Industrial supply distributors use asset based lines and SBA 7(a) acquisition loans. Lenders look at inventory turns and customer diversity.

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Is 423840 the right code for an industrial supply distributor?

Yes, if you sell maintenance, repair and operations supplies like bearings, cutting tools, hose and safety gear to industrial customers. Machinery uses 423830, hardware 423710 and janitorial supplies 423850. Pick the code that matches the work bringing in most of your revenue, since lenders compare it to your tax return.

What is the SBA size standard for 423840?

Under 13 CFR 121.201, a business classified under NAICS 423840 is small if it averages no more than 125 employees, counting affiliates, over the prior 24 months. SBA uses that number for loan eligibility and federal agencies use it for small business set asides. A firm above it can still qualify for SBA 7(a) and 504 loans under the alternative standard of $15 million tangible net worth and $5 million average net income.

How do MRO distributors finance growth?

MRO distributors carry wide inventories and extend credit to plants, so asset based lines are standard. Vendor managed inventory programs and acquisitions of smaller distributors are often financed with SBA 7(a) or term loans. Lenders look at inventory turns. Current financial statements and a receivables aging report speed up any of these approvals.

What does NAICS 423840 cover?

Industrial supplies merchant wholesalers. Industry level code in NAICS 2022, under 42 Wholesale trade, 423 Merchant wholesalers, durable goods, 4238 Machinery, equipment, and supplies merchant wholesalers, 42384 Industrial supplies merchant wholesalers.

What financing do NAICS 423840 businesses use?

Term loans, lines of credit, SBA loans and working capital are the usual products. Start an application and the AI matches the deal to lenders that fund this code.

Where do I put NAICS 423840?

On the SBA loan application, on federal Schedule C or Form 1120, on SAM.gov and state registrations, and on most lender applications. A business can report more than one code; use this one if it describes what produces most of your revenue.