How much funding can be received?

There is no informations about how much funding can be received.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the BDC Financing — Buying a Business Loan?

BDC Financing — Buying a Business Loan is funded by Business Development Bank of Canada (BDC), Government of Canada

What are BDC Financing — Buying a Business Loan's eligibility criterias?

The business must have been generating revenues for 12-24 months. The applicant must be seeking financing to buy or transfer a for-profit business.

BDC Financing — Buying a Business Loan

Last Update: June 12, 2025

Canada

Loan to buy an existing business

BDC Financing — Buying a Business Loan at a glance

Eligible Funding

No Condition

Timeline

Continuous Intakes

Financing Type

Loans and Capital investments

Eligible Industries

Manufacturing
Retail trade
Information and cultural industries
Accommodation and food services
Other services (except public administration)

Grant Providers

Business Development Bank of Canada (BDC)
Government of Canada

Status

Open

Overview of the BDC Financing — Buying a Business Loan program

Get an asset-based loan to acquire an existing business or the business of a competitor or supplier.

Financing terms and conditions

Preferred terms and conditions available for loans over $350,000.
Loan amounts are tailored to your business needs and transaction requirements.
Financing can cover the acquisition of fixed assets, including the purchase of land, buildings, equipment, and shares of an existing business.

Eligible projects & activities

Acquisition of an existing business, including purchasing shares or assets.
Business expansion through mergers or buying competitors.
Management or family succession buyouts.
Refinancing of vendor financing arrangements (vendor take-back).
Acquisition of intangible assets such as intellectual property, goodwill, or client lists.

Examples of admissible projects:

$ 70,000

Buyout of a local bookstore including inventory and business relationships

$ 120,000

Acquire a competitor's gym equipment to expand fitness center operations

$ 80,000

Acquire an existing coffee shop including fixed and intangible assets

$ 150,000

Purchase of competitor bakery equipment and assets for business expansion

$ 180,000

Acquire local farm equipment to expand agricultural production

$ 70,000

Acquire software licenses and database from a competing tech startup

Eligibility criteria of the BDC Financing — Buying a Business Loan program

The applicant is seeking financing to buy, merge with, or acquire another business.
The business must have been generating revenues for 12 to 24 months.
The financing can be used to acquire fixed assets, land, buildings, equipment, or shares of an existing business.
The financing can also be used for business buyouts, family succession, management buyouts, or to acquire intangible assets such as intellectual property or client lists.

Who is eligible?

Businesses seeking to acquire fixed assets (such as land, buildings, or equipment)
Companies pursuing purchase or transfer of existing businesses
Entrepreneurs involved in family succession or management buyouts
Businesses aiming to acquire intangible assets (intellectual property, goodwill, client lists)
Asset-light companies requiring non-conventional financing solutions

Eligible expenses

Acquisition of fixed assets such as land, buildings, or equipment.
Purchase of shares of an existing business.
Buyout expenses related to family succession or management buyout (MBO).
Refinancing costs for vendor take-back financing.
Acquisition of intangible assets, including intellectual property, goodwill, and client lists.

Eligible geographic areas

Canada

How to apply to the BDC Financing — Buying a Business Loan program

Step 1: Assess Financing Needs
- Determine the type and amount of financing required for your business acquisition or succession.
- Identify whether you need funds for acquiring fixed or intangible assets, buyout, or refinancing vendor financing.
Step 2: Contact BDC Experts
- Reach out to BDC’s specialists for guidance on structuring the optimal loan and repayment terms tailored to your cash flow.
Step 3: Prepare Application
- Gather necessary documentation detailing your business and acquisition plans.
- Prepare financial statements and any additional information requested by BDC for assessment.
Step 4: Submit Application Online
- Complete the application form available on BDC’s website.
- Upload the required documents and submit the form for review.
Step 5: Application Review and Approval
- Wait for BDC to assess your application and provide further instructions or a decision.
- Respond promptly to any follow-up requests from BDC for additional information or clarification.

Additional information

Payments can be structured to align with your business’s cash flow.
BDC specialists provide personalized support throughout the acquisition process.
Additional solutions are available for Indigenous entrepreneurs and newcomers to Canada.
Financing options exist for asset-light companies or those needing non-conventional packages without ownership dilution.