British Business Bank agrees a second ENABLE Guarantee transaction with DF Capital
The British Business Bank has agreed a new ENABLE Guarantee transaction of up to £350m with specialist bank DF Capital.
The transaction will support a portfolio of inventory finance through DF Capital’s commercial floorplan and unit stocking solutions, enabling smaller UK dealers to access working capital while supporting manufacturers through improved cash flow across the supply chain.
Inventory finance plays a critical role in supporting SME supply chains across the UK, helping businesses to manage cashflow, maintain stock levels and respond to customer demand.
This transaction builds upon the Bank’s existing relationship with DF Capital, following an initial ENABLE Guarantee of £175m agreed in January 2023 (subsequently increased to £250m in August 2023 and to £350m in July 2024), and a £20m Tier 2 capital facility provided in September 2023.
From April 2023 to March 2026, the ENABLE Guarantee with DF Capital has supported over 1,000 smaller businesses through more than £1.9bn of lending, with an average of 85% delivered consistently to businesses outside London and the South-East.
The new facility is expected to support the equivalent of over £350m of annual additional lending and will operate more efficiently through terms even more closely aligned to DF Capital’s lending strategy.
The ENABLE Guarantees programme is designed to encourage additional lending to smaller businesses. Participating institutions are incentivised by a government-backed guarantee which supports defined portfolios of debt finance in return for a fee.
The programme is open to all UK banks, UK branches of foreign banks, asset finance providers and asset-based finance providers, as well as certain other categories of lenders which lend, or intend to lend, to viable small and medium-sized businesses operating in the UK.
At last year’s Spending Review, the capacity of the ENABLE Guarantees programme was increased from £2bn to £5bn, an uplift of £3bn. This additional capacity will enable the Bank to support more finance providers to scale their lending to smaller businesses, increase the supply of finance and create a more diverse smaller business finance market.
As at July 2026 the programme has completed 21 transactions across 16 delivery partners, with total lending exceeding £5bn.
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, British Business Bank, said: “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 officer, 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.”