Non-bank lender Zip Co wants the government to extend cheap funding and loan guarantees to the buy now, pay later sector to ensure it is not "wiped out overnight" by the coronavirus crisis.

ASX-listed Zip told a Senate committee, in a submission sent over the weekend, that the big banks are being "bolstered by significant government support packages, and [are] now using this crisis to advertise aggressively and increase market share as smaller players are unable to compete".