The British Business Bank, headquartered in Sheffield, has agreed to increase DF Capital’s existing ENABLE Guarantee portfolio by £75m. This new transaction adds to the previously announced £175m ENABLE Guarantee in January 2023, resulting in a total facility size of £250m.
DF Capital was the first lender to utilize the ENABLE Guarantee program for inventory finance, which plays a crucial role in supply chains by providing working capital and improving cashflow throughout product distribution cycles. To date, DF Capital has supported dealer businesses with over £275m of finance.
As part of its objective to increase the diversity and availability of finance for smaller businesses, the British Business Bank supports new market entrants like DF Capital. By doing so, the Bank can rapidly expand its support for businesses and enhance market choice.
There is a possibility that the Guarantee commitment could be further increased to £350m, potentially providing an additional £450m of finance on an annual basis.
Michael Strevens, head of structured guarantees at the British Business Bank, expressed his satisfaction with the increased ENABLE Guarantee portfolio for DF Capital. He emphasized the Bank’s commitment to inventory finance and its goal of diversifying the supply and type of finance available to smaller businesses.
Noting the significance of the ENABLE Guarantee in DF Capital’s capital strategy, Carl D’Ammassa, the CEO, welcomed the additional support from the British Business Bank. He stated that it strengthens their relationship and supports their growth aspirations for 2024.