561491 - Repossession Services
If you're involved in the financial, automotive, or leasing industries, understanding NAICS code 561491 is essential. This code covers a crucial segment of the economy focused on recovering collateral when borrowers default on loans or leases. From automobiles to boats and equipment, repossession services protect lenders and lessors by securing assets at risk. In this blog post, we dive into what NAICS 561491 entails, typical business activities, size standards, and key FAQs to help you navigate this specialized field.
What is NAICS Code 561491?
NAICS Code 561491 refers to the industry group titled Repossession Services. This classification is assigned to establishments primarily engaged in the repossession of personal property for others due to nonpayment or default on loans or leases.
Key Points of NAICS 561491:
- Repossession of tangible collateral such as automobiles, boats, and equipment.
- Services typically involve locating, securing, and recovering assets.
- Often contracted by financial institutions, leasing companies, and lenders.
Sector Overview: Administrative and Support and Waste Management and Remediation Services
Repossession services fall within the broader Administrative and Support and Waste Management and Remediation Services sector. This sector includes companies offering a variety of support functions vital to businesses and organizations, including property management, security, and legal recovery services.
Typical Business Activities Under NAICS 561491:
- Locating and recovering repossessed vehicles, boats, and equipment.
- Managing administrative processes related to defaulted loans.
- Coordinating with law enforcement and legal entities during repossession.
- Operating vehicle storage and auction services post-recovery.
Size Standard: What Classifies as a Small Business?
For government contracting and SBA programs, the Small Business Administration (SBA) defines the size standard for NAICS 561491 as:
- $19 million dollars in average annual receipts.
Businesses with gross receipts under this threshold are classified as small businesses, making them eligible for various federal contracting programs and certifications.
Examples of Businesses under NAICS Code 561491
Businesses classified under this NAICS code commonly include:
- Vehicle Repossession Agencies: Firms specializing in recovering cars, trucks, motorcycles, and other vehicles.
- Boat Repossession Services: Companies focused on repossessing recreational and commercial boats.
- Equipment Repossession Companies: Businesses recovering industrial machinery, construction equipment, and other leased personal property.
NAICS Code 561491 - Code Details Table
| NAICS Code | Title | Description | Sector | Size Standard | Examples of Business Types |
|---|---|---|---|---|---|
| 561491 | Repossession Services | Establishments primarily engaged in repossessing property due to loan defaults. | Administrative & Support Services | $19 million dollars | Vehicle repossession agencies, boat repossession services, equipment repossession companies |
Frequently Asked Questions (FAQ) About NAICS 561491
What types of property are repossessed under NAICS 561491?
Typically, personal property such as automobiles, boats, construction equipment, and other leased or financed assets are repossessed.
Who hires repossession services?
Lenders, lessors, financial institutions, banks, credit unions, and leasing companies contract repossession agencies to secure collateral after default.
Is there a size limit for businesses under this classification?
Yes. The SBA has set a size standard of $19 million in average annual receipts for repossession services businesses to qualify as small.
Are repossession services regulated?
Yes. Repossession activities are subject to federal and state laws governing debtor rights and proper recovery procedures.
Can repossession companies offer related services?
Many companies also provide vehicle storage, auction coordination, and administrative collection support beyond physical repossession.
Conclusion
NAICS code 561491 - Repossession Services represents a vital niche within the administrative support sector, providing the essential role of recovering assets for lenders and creditors. Understanding this category helps businesses correctly classify themselves, maintain compliance, and leverage federal contracting opportunities. Whether you're a repossession agency, a boat recovery service, or equipment repossessor, knowing your NAICS code, sector, and SBA size standards is crucial for growth and success.
Enhance your business visibility and tap into government contracts by aligning accurately with NAICS code 561491 today!
