LONDON (ShareCast) - (Sharecast News) - Distribution Finance Capital announced on Friday that it has received authorisation from the Financial Conduct Authority (FCA) to conduct consumer lending, in a move that would expand its market opportunities as part of its medium-term growth strategy.
The AIM-traded firm said the approval allowed its subsidiary, DF Capital Retail Finance, to provide consumer asset finance, enabling it to offer financing directly to end customers through its network of leisure dealers, as well as to businesses seeking to fund purchases across its commercial sectors.

It said the authorisation followed an application submitted in mid-2024, and a due diligence process conducted by the FCA.

DF Capital said it had demonstrated its ability to meet the regulatory standards for consumer lending, including in the context of recent FCA scrutiny of motor finance and commission disclosure.

The company said it remained confident in its ability to scale the new product in line with regulatory and customer expectations.

As previously announced, the group said it remained on track to launch its asset finance and hire purchase offering in the first half of 2025.

By leveraging its existing dealer relationships, DF Capital said it expected the expansion to open access to adjacent markets several times larger than its current core lending operations, reinforcing its position as a multi-product lender.

"Today represents a significant step forward in our growth strategy," said chief executive officer Carl D'Ammassa.

"Becoming a multi-product lender has been a key element of our medium-term growth plan and strategic ambition for some time.

"Now having the required permissions from the FCA to launch a consumer asset finance product unlocks a sizable opportunity for the group and one that is in significant demand from our dealer and manufacturer customers."

At 1024 GMT, shares in Distribution Finance Capital Holdings were up 0.38% at 39.65p.

Reporting by Josh White for Sharecast.com.

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