This follows from the FLA's findings that forbearance requests related to COVID-19, have reached 1.6 million in the 12 weeks to 29 May 2020.
The Finance & Leasing Association (FLA) has called for the government and the Bank of England to take immediate action to support the non-bank lending market.
This follows from the FLA's findings that forbearance requests related to COVID-19, have reached 1.6 million in the 12 weeks to 29 May 2020.
Of that total, 88% were granted by the end of that period.
Over the same period, FLA asset finance division members received an estimated 287,000 requests for forbearance and granted 83%.
Motor finance division members received an estimated 613,000 requests and had so far granted 90%.
Consumer finance division members had received an estimated 723,000 requests for forbearance and had so far granted 88%.
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% highlight 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.”
