NAICS 522220 Quarterly Industry Report
Sales Financing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 522220Sector: Finance and Insurance (52)Updated: Q1 2026
About This Report
This Fair Market Value report for NAICS 522220 covers sales financing, including establishments engaged in lending through installment sales agreements and related leasing activities. Fair Market Value principles apply to collateral adequacy and creditworthiness assessments. Data was compiled from Census Bureau[4] statistics, Bureau of Labor Statistics employment records, and SBA size standards documentation.
Industry Snapshot
Key metrics for the sales financing industry.
Industry Definition & Overview
Sales Financing (NAICS 522220) encompasses establishments primarily engaged in lending money for the purpose of providing collateralized goods through contractual installment sales agreements, either directly or through arrangements with dealers. This industry includes financing activities combined with leasing services, such as automobile financing, equipment lease financing, and insurance premium financing. Per Census Bureau[4] data, the nondepository credit intermediation sector employed 694,908 workers in 2020, with over 46,000 establishments operating across financial services.
Sales financing operations manage consumer and commercial credit relationships by purchasing or supporting installment and credit card receivables created through retail sales. Roughly 80 percent of new vehicle sales in 2023 were financed through loans or leases, demonstrating the substantial role of sales financing in the broader economy. Major market participants include manufacturer acceptance companies and independent finance companies that underwrite credit risk and manage payment collections.
The industry serves as a key intermediary between manufacturers, dealers, and consumers, enabling acquisition of high-value assets like vehicles and equipment. Bureau of Labor Statistics[5] employment data tracks this sector within the broader nondepository credit intermediation category. Digital transformation and electric vehicle-specific financing products are emerging trends reshaping service delivery and underwriting practices. Subprime auto lending represents a notable market segment, with delinquency rates serving as a key indicator of consumer credit health.
What's Included in This Industry
- Automobile sales financing and dealer acceptance companies
- Equipment finance leasing arrangements combined with sales financing
- Motor vehicle manufacturer acceptance corporations
- Heavy equipment manufacturer acceptance companies
- Insurance premium financing operations
- Installment and credit card receivables purchase operations
- Sales financing with leasing arrangements
- Collateralized goods lending through contractual agreements
- Dealer-arranged financing services
- Commercial and consumer credit management
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Finance and Insurance | 52 |
| Subsector | Credit Intermediation and Related Activities | 522 |
| Industry Group | Nondepository Credit Intermediation | 5222 |
| NAICS Industry | Sales Financing | 52222 |
| National Industry | Sales Financing | 522220 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 522210 | Credit Card Issuing | Credit Card Issuing shares similar credit risk assessment and consumer lending practices with sales financing, focusing on unsecured credit products rather than collateralized installment agreements. |
| 522299 | International, Secondary Market, and All Other Nondepository Credit Intermediation | All Other Nondepository Credit Intermediation includes various credit lending activities not classified as sales financing, including secondary market operations and international credit intermediation. |
| 531110 | Lessors of Residential Buildings and Dwellings | Lessors of Residential Buildings engage in property leasing activities, representing the distinction between financing-focused operations and pure asset leasing without credit intermediation. |
| 532111 | Passenger Car Rental | Passenger Car Leasing operations provide vehicle leasing services, distinguishing pure leasing from sales financing operations that combine credit extension with lease arrangements. |
| 532120 | Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing | Heavy Equipment Leasing operations focus on equipment rental and leasing, contrasting with sales financing establishments that combine lending with collateralized goods provision. |
| 522110 | Commercial Banking | Commercial Banking provides broader credit intermediation services including business loans and depository functions, representing the distinction between depository and nondepository credit activities. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.2% | 372 |
| 2 | Florida | 9.0% | 327 |
| 3 | Texas | 8.6% | 313 |
| 4 | New York | 5.8% | 212 |
| 5 | Georgia | 4.6% | 166 |
| 6 | Illinois | 4.5% | 165 |
| 7 | Ohio | 3.5% | 128 |
| 8 | North Carolina | 3.4% | 122 |
| 9 | New Jersey | 3.3% | 121 |
| 10 | Pennsylvania | 3.1% | 114 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is NAICS 522220?
NAICS 522220 covers establishments primarily engaged in lending money through collateralized installment sales agreements. Per Census Bureau[9] definitions, this includes automobile financing, equipment lease financing, and insurance premium financing combined with leasing activities.
What is the SBA size standard?
Per SBA standards[6], the threshold for NAICS 522220 is $47 million in average annual receipts. Businesses at or below this level qualify as small businesses for federal contracting and SBA assistance programs.
How does this differ from equipment leasing?
NAICS 522220 focuses on sales financing combined with leasing, while Subsector 532 (Rental and Leasing) covers pure equipment leasing without financing. Per Census Bureau[9] classifications, the distinction is whether lending through installment agreements is the primary activity.
What types of businesses are included?
Per Census Bureau[9] definitions, this classification includes automobile sales finance companies, manufacturer acceptance companies for vehicles and heavy equipment, insurance premium finance operations, and businesses engaged in purchasing installment receivables from retail transactions.
What market trends affect sales financing?
Per Federal Reserve[10] data, roughly 80 percent of new vehicle sales were financed in 2023, with digital transformation and EV-specific financing products emerging as key industry trends reshaping service delivery and underwriting practices.
Which businesses are excluded?
Per Census Bureau[9] definitions, establishments primarily engaged in equipment leasing without financing activities are classified in Subsector 532. Depository credit institutions and consumer lending operations without sales financing activities are classified elsewhere in Finance and Insurance.
Who are major companies in this industry?
Per Consumer Financial Protection Bureau[11] data, major market players include General Motors Financial Company, Toyota Financial Services, and Ford Motor Credit Company, which dominate the automotive sales financing segment alongside independent finance companies.
How does Fair Market Value apply?
Per OCC[12] guidelines, sales financing companies must assess Fair Market Value of collateral when underwriting credit risk and establishing loan terms, ensuring financed asset values adequately cover lender exposure in installment sales agreements.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]Census Bureau data.census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA size standards sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504 loans sba.gov
- [9]Census Bureau census.gov
- [10]Federal Reserve federalreserve.gov
- [11]Consumer Financial Protection Bureau consumerfinance.gov
- [12]OCC occ.treas.gov
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