The British Business Bank has announced an increase of £75 million to commercial lender DF Capital. This is an addition to an existing ENABLE Guarantee, which will see the facility increased to £250 million. The guarantee may be increased again at some point in the future.
DF Capital is said to be the first lender to leverage the ENABLE Guarantee program to support inventory based finance.
The ENABLE Guarantee aims to encourage additional lending to smaller businesses by covering a portion of a designated lending portfolio’s net credit losses in excess of an agreed ‘first loss’ threshold, which they receive in exchange for a fee.
The Bank states that DF Capital received its banking license in September 2020 and one of the objectives of the Bank is to increase the diversity and type of finance available to smaller businesses.
Carl D’Ammassa, Chief Executive of DF Capital, said the support from the ENABLE Guarantee further strengthens their relationship with the British Business Bank, “being a key foundation of our capital strategy, and supports our growth ambitions into 2024.”
