The British Business Bank has confirmed an additional £100m ($129.72m) increase to DF Capital’s ENABLE Guarantee, enhancing the existing agreement.

This move follows an initial augmentation of £250m disclosed in August 2023. It brings the total facility to £350m, a significant rise from the original £175m pledged in January 2023.

British Business Bank head of structured guarantees Michael Strevens said: “This second facility increase of DF Capital’s ENABLE Guarantee is a 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.”

The expanded guarantee is set to bolster DF Capital’s capacity for organic growth within its lending portfolio.

DF Capital has the distinction of being the inaugural lender to leverage the ENABLE Guarantee scheme for inventory finance, a key component in bolstering supply chains, facilitating working capital, and improving cash flow throughout the distribution of products.

As of May 2024, DF Capital has channelled more than £794m in financing to dealer businesses under the ENABLE Guarantee, with a notable 97% of this funding benefiting enterprises outside the London area.

DF Capital chief executive Carl D’Ammassa said: “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.”

Recently, the British Business Bank introduced the ‘Growth Guarantee Scheme’ to help smaller businesses in the UK secure financing for their investment and expansion needs.

The initiative is anticipated to assist approximately 11,000 smaller businesses from 1 July 2024 to 31 March 2026. So far, 41 lenders have received accreditation to participate in the Growth Guarantee Scheme.