The Finance & Leasing Association (FLA) says its Q1 2021 Industry Outlook Survey indicates that participants in the asset finance, consumer finance and motor finance sectors foresee opportunities for growth over the coming year – despite heightened uncertainty caused by Covid restrictions.
A survey of 79 FLA members carried out between 16 December and 8 January found that 52% of respondents expected some improvement in economic conditions over the next 12 months, while 44% expected worse to come. But, encouragingly, almost 70% expected to see some increase in new business, with 37% expecting to see an increase of 10% or more.
At the same time, 68% of survey respondents said they anticipated a slight increase in the number of customers in arrears and just 9% a significant increase.
The vast majority (92%) said they expected to see some increase in the number of UK business insolvencies over the next twelve months, with almost half (49%) expecting a significant increase. Similarly, 90% some increase in the number of personal insolvencies over the next twelve months, with 26% predicting a significant increase.
The FLA’s commentary stressed the unprecedented support asset finance, consumer finance and motor finance markets have given their customers during the pandemic, granting more than 1.5 million requests for forbearance.
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