DF Capital secures new £350m British Business Bank ENABLE Guarantee

The British Business Bank has agreed a second ENABLE Guarantee transaction of up to £350 million with specialist lender DF Capital, further strengthening its support for UK SMEs through inventory finance.

The new facility will support DF Capital’s commercial floorplan and unit stocking finance solutions, helping smaller UK dealers access vital working capital while improving cash flow across manufacturer and dealer supply chains.

The transaction builds on an established relationship between the two organisations. The British Business Bank first agreed a £175 million ENABLE Guarantee with DF Capital in January 2023, which was subsequently increased to £250 million later that year and then to £350 million in July 2024. The Bank also provided DF Capital with a £20 million Tier 2 capital facility in September 2023.

Between April 2023 and March 2026, the ENABLE Guarantee supported more than 1,000 smaller businesses through over £1.9 billion of lending, with an average of 85% of lending consistently delivered to businesses outside London and the South East.

The latest agreement is expected to facilitate the equivalent of more than £350 million in additional annual lending while operating under terms that are more closely aligned with DF Capital’s specialist lending strategy.

The ENABLE Guarantees programme is designed to increase lending to smaller UK businesses by providing participating lenders with a government-backed guarantee on defined portfolios of debt finance. The programme is open to banks, asset finance providers, asset-based lenders and other eligible finance providers serving UK SMEs.

Following last year’s Spending Review, the programme’s capacity increased from £2 billion to £5 billion, allowing the British Business Bank to support a broader range of lenders and expand access to finance for smaller businesses.

As of July 2026, the programme has completed 21 transactions across 16 delivery partners, supporting more than £5 billion of lending.

Blair McDougall, Minister for Small Business and Economic Transformation, said: “Growth depends on businesses having the confidence and capital to invest.

“This £350m transaction will unlock vital finance for UK dealers to strengthen supply chains, support manufacturers and give growing businesses across the country the confidence to seize new opportunities.”

Michael Strevens, Managing Director, Structured Financial Institutions Solutions at British Business Bank, added: “Catalysing access to finance for smaller businesses is central to our mission.

“From an early stage, we have worked closely with DF Capital as it established itself as a specialist lender, and we are delighted to see how that support has helped catalyse its growth.

“We look forward to continuing to work alongside DF Capital as it builds on this momentum, using this guarantee and future collaboration to further increase lending to SMEs and deliver meaningful impact across the UK’s nations and regions.”

Carl D’Ammassa, chief executive of DF Capital, said:

“This successor ENABLE Guarantee with the British Business Bank is a critical ingredient that supports the expansion of our lending capacity through 2028 and in line with our strategic plan.

“Built on our track record and experience of our previous arrangements, this latest iteration has been specifically structured to better align with our specialist lending model, strengthening our ability to provide finance to UK SMEs. It reinforces a key pillar of our capital strategy, enabling us to continue to deliver our ambitious plans whilst helping more businesses access the funding they need to support their growth.”