In Focus Collections
month in 2019. In the first quarter of 2020 as a whole, new business fell by 15% compared with the first quarter of 2019. The IT equipment finance was the only
asset sector to report growth in March, with new business up by 15% compared with the same month in 2019. Over the same period, the commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 32% and 23% respectively. The asset-finance market was hit hard
in March by measures taken by the government to deal with the coronavirus crisis. Of particular concern is new lending to
SMEs which contracted by 19% compared with March 2019, and by 10% in the first quarter of 2020 as a whole. Asset-finance members provided £20.1bn
of new lending to SMEs in 2019, of which £7bn came from non-bank lenders. We continue to urge the government to
provide support for non-bank lenders by allowing them to access the Term Funding Scheme. This would ensure that a diverse, innovative and competitive business lending market remains in place to help the economic recovery.
Consumer finance Consumer finance new business fell in March 2020 by 16% compared with the same month in 2019, and contracted by 4% in the first quarter of 2020 as a whole. Credit card and personal loan new business together fell in March 2020 by
10% compared with the same month in 2019, while retail store and online credit new business was 6% lower over the same period. The strength of online purchases since
the lockdown meant that the retail store and online credit sector reported a relatively modest fall in new business in March. Our latest research suggests that this sector is likely to see new business fall by 12% in 2020, while UK new consumer credit overall is expected to contract by 15% compared with 2019.
We urge further action by the government
and Bank of England to extend financial support schemes to all lenders, including non-banks, so that they can meet the huge demand for forbearance and continue to provide new lending. This will also ensure that the consumer finance market remains diverse, innovative, and competitive after the crisis. CCR
New consumer credit lending
The asset-finance market was hit hard in March by measures taken by the government to deal with the coronavirus crisis. Of particular concern is new lending to SMEs which contracted by 19% compared with March 2019, and by 10% in the first quarter of 2020 as a whole. Asset-finance members provided £20.1bn of new lending to SMEs in 2019, of which £7bn came from non- bank lenders
September 2020
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