The British Business Bank has agreed to an initial £175 million “ENABLE Guarantee” for DF Capital, a subsidiary of Distribution Finance Capital Holdings plc. DF Capital received its banking license in September 2020.
Headquartered in Manchester, DF Capital is a commercial lending and personal savings bank providing financing to a variety of sectors including leisure and manufacturing in the UK.
This new commitment is expected to provide £225 million of annual funding for smaller UK businesses with the possibility of a significant increase over time.
This is the first time the ENABLE Guarantee program has supported inventory finance. The Bank said this type of lending is critical to supply chains, supports the availability of working capital, and improves cash flow across product distribution cycles.
Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions, British Business Bank, said supporting lenders in providing finance for smaller firms is key for the bank.
“This is a significant facility and has the capacity to generate growth for dealerships and manufacturers across the UK as well as providing greater choice of finance for smaller businesses.”
Carl D’Ammassa, Chief Executive Officer of DF Capital said they are delighted to have worked closely with the British Business Bank adding that the sizeable facility provides a runway to grow lending and support more manufacturers and dealers in the years ahead.