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FLA urges government to act now to support non-bank lenders

By / 1 year ago / Latest News / No Comments

The Finance & Leasing Association has continued calls for the Government and the Bank of England to take immediate action to support the non-bank lending market.

FLA motor finance division members received an estimated 613,000 requests and had so far granted 90%

FLA motor finance division members received an estimated 613,000 requests and had so far granted 90%

The calls come as new FLA figures released today show the number of COVID-19 related requests for forbearance reached more than 1,623,000 in the twelve weeks to 29 May 2020. Of that total, 88% (1,424,000) had been granted by the end of that period, the FLA said. The FLA has put forward a Term Funding Pipeline proposal to tackle the problem.

Stephen Haddrill, director general at the FLA, said: “Figures released today of a record fall in the UK economy in April of more than 20% highlights the urgent need for the Government and Bank of England to enable all lenders – bank and non-bank  – to access the funding required to meet the huge demand for forbearance and new credit as the economy reopens.

“FLA members have a track record of supporting businesses and households during difficult times, with our latest figures for April showing new lending of more than £4.7bn despite the lockdown. We have put forward a Term Funding Pipeline proposal, which we believe will open up the current financial support schemes to a wider group of lenders – there should be no further delay, action is needed now.”

Apr 2020 % change on prev. year 3 months to Apr 2020 % change on prev. year 12 months to Apr 2020 % change on prev. year
Total FLA new business (£m) 4,725 -60 25,917 -27 131,047 -5
By customer:
Business (asset) finance (£m) 1,612 -47 6,624 -29 32,899 -6
Consumer finance (£m) 3,113 -64 19,293 -26 98,147 -5
Within the above:
Motor finance (£m) 607 -86 8,233 -38 42,840 -9
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Jonathan Musk

Jonathan turned to motoring journalism in 2013 having founded, edited and produced Autovolt - one of the UK's leading electric car publications. He has also written and produced books on both Ferrari and Hispano-Suiza, while working as an international graphic designer for the past 15 years. As the automotive industry moves towards electrification, Jonathan brings a near-unrivalled knowledge of EVs and hybrids to Fleet World Group.