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NAICS 424920, industry

NAICS 424920: Book, periodical, and newspaper merchant wholesalers

NAICS 424920 is the industry code for book, periodical, and newspaper 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 424920 covers

Wholesalers in this code distribute books, magazines and newspapers to bookstores, libraries, schools and newsstands. Many also handle returns and library processing such as cataloging and labeling.

Included in this code

  • Book wholesale and distribution
  • Periodical and magazine distribution
  • Newspaper distribution to retailers
  • Textbook wholesale

Not this code

Businesses that use 424920

Book distributor to librariesMagazine wholesalerTextbook wholesaler

Financing for this trade

Book distributors use receivables lines and inventory financing, with attention to returns. Lenders discount inventory heavily because unsold books are returnable or slow to move.

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Is 424920 the right code for a book distributor?

Yes, if you buy books, magazines or newspapers from publishers and resell them to stores, schools or libraries. Publishers use 513 codes even if they distribute their own titles. Bookstores and newsstands use 459210. If your work overlaps, also read the definitions for 513130 (book publishers) and 459210 (book retailers and news dealers), then choose the code that matches your largest source of revenue.

What is the SBA size standard for 424920?

The SBA size standard for 424920 is 200 employees. SBA counts the average number of people on payroll, full time, part time and temporary, over the last 24 months, and adds in any affiliates. A book distributor under that headcount counts as small for SBA 7(a) and 504 loans and for federal small business contracts, whatever its revenue.

How do book distributors manage financing?

Returns are the big issue, since retailers can often send back unsold books, so lenders adjust receivables and inventory for return reserves. A receivables line handles library and school accounts that pay slowly. Warehouse and fulfillment equipment is financed with term loans.

What does NAICS 424920 cover?

Book, periodical, and newspaper merchant wholesalers. Industry level code in NAICS 2022, under 42 Wholesale trade, 424 Merchant wholesalers, nondurable goods, 4249 Miscellaneous nondurable goods merchant wholesalers, 42492 Book, periodical, and newspaper merchant wholesalers.

What financing do NAICS 424920 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 424920?

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.