Sheffield-based British Business Bank, the UK’s economic development bank, has agreed a second portfolio increase of £100 million to Manchester-based specialist commercial lender DF Capital’s existing ENABLE Guarantee facility to support inventory finance.
This transaction builds on the £250 million which was agreed through the first facility increase announced in August 2023. The total facility now stands at £350 million, doubling the initial commitment of £175 million agreed in January 2023.
“The guarantee has helped DF Capital unlock additional levels of growth that would have been difficult to achieve otherwise and the size of the guarantee will allow DF Capital to continue to grow its own book organically in the future,” said the British Business Bank.
“DF Capital was the first lender to utilise the ENABLE Guarantee programme to support inventory finance.
“This specialist form of lending is critical to supply chains, supports the availability of working capital and improves cashflow across product distribution cycles.
“As of May 2024, DF Capital have used the ENABLE Guarantee to support over £794m of finance to dealer businesses, with almost 97% of this being outside London.
“DF Capital received its banking licence in September 2020. One of the objectives of the British Business Bank is to increase the diversity of supply and type of finance available to smaller businesses. In supporting new market entrants in this way, the Bank can help rapidly build the number of businesses supported and provide more choice across the market.”
DF Capital is a trading name of DF Capital Bank Limited, a subsidiary of Distribution Finance Capital Holdings plc.
It is a specialist bank providing both inventory finance solutions to dealer and manufacturing businesses across the UK, and personal savings products to retail customers.
With its headquarters in Manchester, the bank now employs over 100 people. It has provided over £3.5 billion of funding across a variety of leisure and commercial sectors, including motorhome & caravan; lodges & holiday homes; specialist/prestige cars, motorcycles/all-terrain vehicles; marine; agriculture; industrial and transport.
DF Capital CEO Carl D’Ammassa said: “British Business Bank’s continued support by upsizing the ENABLE Guarantee helps unlock our near-term growth ambitions and our aim to assist more SME dealers and manufacturers as we look to further scale the bank and become a multi-product lender.”
British Business Bank head of structured guarantees Michael Strevens said: “This second facility increase of DF Capital’s ENABLE Guarantee is testament to our commitment to the role specialist banks play in financing smaller businesses.
“DF Capital’s continued expansion demonstrates both the power of the guarantee to grow lenders in the small business space, as well as it being an attractive alternative to raising equity capital.”