DF Capital granted banking licence
Distribution Finance Capital Holdings plc, a niche lender providing working capital solutions to dealers and manufacturers across the UK, today announces that, following the resubmission of its banking licence application in August 2019, the Company has received confirmation from the Prudential Regulation Authority (PRA) that the PRA, with the consent of the Financial Conduct Authority (FCA), has authorised its subsidiary Distribution Finance Capital Limited as a bank.
The Company did not apply to use the optional “mobilisation” (authorised with a business restriction) process and as a result, the Company intends to launch its range of personal savings products in due course, through a straightforward, online account opening process, supported by UK-based savings experts. Distribution Finance Capital Ltd, the Group company that holds the banking licence, will be renamed DF Capital Bank Ltd, subject to regulatory approval.
Carl D’Ammassa, Chief Executive Officer commented: “This is an exciting time for DF Capital, as the Company can now unlock its full potential as a regulated bank. We have been bank-ready for some time so are pleased with this news and feel well placed to look beyond the near-term challenges of COVID-19 to support our dealer and manufacturer customers in the knowledge that we will have an additional, and sustainable, funding source in place. I believe we have all the tools in our armoury to progress our growth plans, whilst remaining a strong and well-capitalised bank lender”.
DF Capital Bank Ltd will offer competitive and straightforward online savings accounts. Deposits in DF Capital Bank Ltd will be fully guaranteed under the Financial Services Compensation Scheme (“FSCS”) up to £85,000 and will be lent safely to UK businesses.
DF Capital was launched in June 2016 and began lending in mid-2017. By the end of 2017, the company had £30m of assets. Distribution Finance Capital Holdings was listed on the LSEG’s AIM market in May 2019. Loans of more than £750 million have been originated to date. It has a blended service model, which addresses customers’ desire for best-in-class digital experience with a flexible and personal level of service. In the full year ending 31 December 2019, total loans rose by 82% to £208m (December 2018: £114m), with gross revenue up 144% to £12.7m (December 2018: £5.2m).
About DF Capital Bank Ltd
DF Capital Bank Ltd supports UK SMEs, providing working capital solutions to manufacturers and dealers in the agricultural equipment, industrial equipment, marine, motor and recreational vehicles sectors. DF Capital provides working capital solutions up and down supply chains through the provision of inventory finance products including floorplan finance and unit stock finance. These products allow customers to match their cash cycle to the lending term, allowing them to release the working capital tied up in their day-to-day operations and so grow their business.
Carl D’Ammassa – Chief Executive Officer
+44 (0) 161 413 3391
Blue Pool Communications (Financial PR)
+44 (0) 7501 271 083