Consumer Lending — Business Survival Rate
An estimated 43% of consumer lending businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 15.5%.
Is Consumer Lending a Good Business to Start?
With a 43% five-year survival rate, consumer lending has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.
The annual exit rate of 15.5% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net negative: more businesses closing than opening (-5.6 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 592,994 workers across 12,088 firms.
Want to know how much consumer lending businesses actually make?
See full revenue benchmarks for Consumer Lending →Frequently Asked Questions
- What percentage of consumer lending businesses fail?
- Approximately 57% of consumer lending businesses fail within their first 5 years. The annual closure rate is 15.5%, with 1,267 firms closing permanently in 2023.
- Is the consumer lending industry growing or shrinking?
- The consumer lending industry is currently shrinking with a net job creation rate of -15.3% per year. New businesses are entering at 10.0% while 15.5% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.