NAICS codes help—but should they decide a restricted-industry match?
A business description and its selected NAICS code may not fully describe actual operations. How should codes, source text, and manual review work together?
10 replies
Use the code as one input and include a concise operating description. The selected code can be broad or outdated.
The lender’s exact restriction language matters more than a generic mapping when the two do not align.
Do not expand a restricted code range beyond what the guideline actually states.
Can the matcher automatically map free-text business descriptions to NAICS?
It can suggest codes with confidence and evidence, but the user should confirm before a restriction decision uses them.
Avoid a public narrative detailed enough to identify the merchant; operational details belong in secure underwriting.
A review state is appropriate when the code passes but the business description suggests a restricted activity.
Yes. Conflicting classification evidence should never become an automatic pass.
Lender profiles can publish exact codes, descriptions, and exception rules when available.
Use codes as structured evidence, preserve lender wording, and route ambiguous business activity to review.