561440 - Collection Agencies
In the world of government contracting and business classification, NAICS code 561440 plays a crucial role for companies involved in debt recovery and related financial services. Whether you're a debt collection agency, credit reporting service, or a business looking to understand industry standards, this code helps define your market segment and eligibility for contracts. In this blog post, we’ll explore NAICS code 561440, its scope, the sector it belongs to, size standards, typical business activities, and much more.
What is NAICS Code 561440?
NAICS code 561440, titled Collection Agencies, classifies establishments primarily engaged in collecting payments on delinquent accounts. These agencies operate on behalf of creditors to recover outstanding debts and often provide ancillary services such as credit reporting and debt purchasing.
Detailed Description
This industry comprises businesses that focus on:
- Collecting payments on overdue accounts
- Providing credit reporting services related to delinquent payments
- Purchasing debt for collection purposes
- Delivering tax collection services on a contract or fee basis
Sector and Business Activities Covered by NAICS Code 561440
NAICS code 561440 falls under the broader sector of:
Administrative and Support and Waste Management and Remediation Services
Within this sector, Collection Agencies play a vital role by managing the financial recovery process for creditors and financial institutions.
Typical Business Activities Include:
- Debt collection services on behalf of lenders or service providers
- Credit arrears collection services
- Operating adjustment agencies (except insurance)
- Tax collection services contracted on a fee basis
- Purchasing delinquent accounts for recovery
Size Standards for NAICS Code 561440
To qualify as a small business under this NAICS code for government contracting purposes, businesses must meet the following size standards:
- Maximum Annual Revenue: $19.5 million dollars
This size standard helps agencies determine eligibility for small business programs and set-aside contracts.
Examples of Businesses Under NAICS Code 561440
- Debt Collection Agencies: Firms contracted by creditors to recover unpaid debts.
- Credit Reporting Services: Companies providing reports related to delinquent accounts.
- Debt Purchasing Companies: Businesses that buy delinquent accounts and attempt to collect on them.
NAICS Code 561440 Code Details
| Code Detail | Description |
|---|---|
| Account Collection Services | Managing collections on overdue payments |
| Adjustment Agencies (except insurance) | Handling account adjustments unrelated to insurance |
| Bill Collection Services | Collecting unpaid bills for businesses |
| Collection Agencies | General debt recovery services |
| Collection Agencies, Accounts | Specialized in accounts receivable collections |
| Credit Arrears Collection Services | Focus on collecting overdue credit payments |
| Debt Collection Services | Comprehensive debt recovery solutions |
| Delinquent Account Collection Services | Services targeting past-due accounts |
| Tax Collection Services on a contract/fee basis | Collecting taxes as a service for government or clients |
Frequently Asked Questions (FAQs) about NAICS Code 561440
What types of companies use NAICS code 561440?
Mostly businesses engaged in debt and delinquent account collection, credit reporting related to collections, and debt purchasing.
Can construction companies be classified under NAICS 561440?
No, this code is specific to collection and debt recovery services, not construction.
What is the maximum revenue a business can have to qualify as a small business under NAICS 561440?
$19.5 million in average annual receipts.
Does NAICS 561440 include tax collection?
Yes, tax collection services provided on a contract or fee basis are included.
How does NAICS code classification help businesses?
It defines your industry for government contracts, compliance, market analysis, and helps in identifying business opportunities.
Conclusion
NAICS code 561440 is integral for businesses operational in the collection of delinquent debts and related financial services. Understanding this classification not only clarifies your industry niche but also enables eligibility for government contracting and small business programs. Whether you run a debt collection agency, a credit reporting firm, or a debt purchasing company, aligning with NAICS 561440 ensures you are correctly positioned within the administrative and financial support ecosystem.
For more insights on government contracting and industry classifications, stay tuned to our blog!
