The FLA said urgent action is needed to support the non-bank lending market as figures released today by the revealed that FLA members provided just over £138bn of new business in the 12 months to March 2020.

Of this total, £44bn was provided by non-bank lenders.

Stephen Haddrill, director general at the FLA, said: “The asset, consumer and motor finance markets have been hit hard by the measures taken to deal with the coronavirus crisis, with a 20% fall in new business in March alone.

“FLA members have also faced almost 1.2 million COVID-19 related requests for forbearance, of which 75% have already been granted. The industry is committed to supporting their customers during these exceptional times.

“Urgent action is needed – in days, not weeks – to deliver financial support to the non-bank lending sector to ensure that we maintain a financial services sector that is diverse, innovative and competitive.”