The British Business Bank has agreed a second portfolio increase of £100m to specialist commercial lender DF Capital’s existing ENABLE Guarantee facility.

The transaction builds on the £250m which was agreed through the first facility increase announced in August last year.

DF Capital’s total facility now stands at £350m, doubling the initial commitment of £175m agreed in January 2023.

As of May this year, DF Capital has used the ENABLE Guarantee to support over £794m of finance to dealer businesses, with around 97% of this being outside London.

Head of structured guarantees at British Business Bank, 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.”

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.

Chief executive at DF Capital, Carl D'Ammassa, added: “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.”

---