FLA urges government to lend support

The Finance and Leasing Association is urging the government and Bank of England to take immediate action to support the non-bank lending market.

It found that the number of Covid-19 related requests for forbearance reached 1,623,000 in the 12 weeks to 29 May 2020. Of that total, 88% had been granted by the end of that period.

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.”

In the 12 weeks to 29 May 2020, FLA asset finance division members received an estimated 287,000 requests for forbearance and had so far granted 83%.

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