Corporate Bank of England has agreed on an initial guarantee of £175 million to a commercial lender, DF Capital.
This guarantee will allow Manchester-based DF Capital to provide up to £225 million more in inventory financing each year through commercial floor plans and unit storage solutions for manufacturing companies. UK small and medium enterprises.
This is the first time ENABLE Assurance has supported inventory financing. This specialized form of lending is essential to the supply chain, supporting available working capital and improving cash flow throughout the product delivery cycle.
DF Capital received its banking license in September 2020. One of the British Corporate Bank’s goals is to increase the variety of offers and financing options available to small businesses. By supporting new entrants in the market in this way, the Bank can help to rapidly increase the number of supported companies and bring more choices to the market.
The guarantee commitment could increase to £350 million, which would support additional funding of around £450 million per year.
“Supporting lenders in providing finance for smaller businesses is key for us at the British Business Bank. This is a significant facility and has the capacity to generate growth for dealerships and manufacturers across the UK as well as providing a greater choice of finance for smaller businesses.”
Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions, British Business Bank.
“We are delighted to have worked closely with the British Business Bank to utilize an ENABLE Guarantee for inventory finance for the first time. This sizeable facility gives us a runway to grow our lending and support more manufacturers and dealers in the years ahead. This has been an important milestone in our capital strategy, giving us increased capacity to scale the bank.”
Carl D’Ammassa, Chief Executive Officer, of DF Capital.