BDC Financing — Buying a Business Loan
Canada
Loan to buy an existing business
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Retail trade
- Information and cultural industries
- Accommodation and food services
- Other services (except public administration)
grant_single|grantors
- Business Development Bank of Canada (BDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get an asset-based loan to acquire an existing business or the business of a competitor or supplier.
grant_single_labels|terms_and_conditions
This BDC Financing program provides various tailored financing solutions aimed at facilitating business acquisitions, supporting fixed and intangible asset purchases, and offering adaptable repayment terms. It is designed to provide higher financing percentages with cash flow-matched payments for prospective business owners.
- Financing available for acquiring fixed assets, which includes purchasing land, buildings, equipment, and shares of an existing business.
- Support for business buyouts, including family successions or management buyouts (MBO), and refinancing vendor financing options.
- Acquisition financing for intangible assets such as intellectual property, goodwill, and client lists.
- Loans are structured with optimal financing to protect working capital, ensuring terms and conditions remain consistent without change.
- Specialized financing options for asset-light companies with non-conventional needs, structured to avoid ownership dilution.
grant_single_labels|projects
This financing solution supports entrepreneurs looking to acquire or merge with other businesses, enable business expansions, and secure funding for business asset purchases. It is tailored to meet diverse business acquisition and transition needs.
- Acquisition of fixed assets such as land, buildings, and equipment.
- Financing for purchasing shares of an existing business.
- Funding to support business buyouts, including family successions and management buyouts (MBOs).
- Refinancing of vendor financing arrangements, such as vendor take-backs.
- Procurement of intangible assets, including intellectual property, goodwill, and client lists.
grant_single|admissibleProjectsExample
$ 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
$ 70,000
Buyout of a local bookstore including inventory and business relationships
$ 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
grant_single_labels|admissibility
Eligibility for this loan involves meeting specific business conditions and operational criteria.
- The business must be considering an acquisition, merger, or expansion through buying a competitor.
- The business should have been generating revenues for 12-24 months.
- The business must demonstrate the potential for inclusive entrepreneurship.
- The loan program is particularly suited for tech companies or businesses requiring financing for tech equipment.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the BDC loan programs include Canadian businesses that have been generating revenue for 12-24 months and are looking to expand or transition through company acquisitions, mergers, or business successions. Special consideration is given to Indigenous entrepreneurs and newcomers to Canada. Applicants typically include, but are not limited to, small to medium-sized businesses seeking assistance in acquiring fixed assets, intangible assets, or undergoing business buyouts. The evaluation criteria are not specified in the provided context.
grant_eligibility_criteria|eligible_expenses
This loan is designed to support businesses in various stages of acquisition and expansion through tailored financing solutions. The eligible activities focus on acquiring physical, intangible assets, and facilitating business transitions smoothly.
- Acquire fixed assets including land, buildings, equipment, and shares of existing businesses.
- Execute business buyouts such as family successions or management buyouts (MBO).
- Refinance existing vendor financing arrangements including vendor take-backs.
- Acquire intangible assets like intellectual property, goodwill, and client lists.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The criteria include:
- Optimal financing structure tailored to your needs
- Extra support available when needed
- Consistent terms and conditions
grant_single_labels|register
Here are the steps to submit an application for this loan:
- Step 1: Determine Eligibility
- Review the loan criteria to ensure your business qualifies.
- Evaluate your business needs to determine the appropriate loan type and amount.
- Step 2: Prepare Documentation
- Gather necessary financial documents such as balance sheets, income statements, and cash flow forecasts.
- Prepare supporting documents like business plans, company profiles, and records of revenue generation.
- Include any relevant testimonials or references, such as those from previous successful entrepreneurs.
- Step 3: Contact BDC
- Reach out to a Business Development Bank of Canada (BDC) representative to discuss your financing needs.
- Schedule a consultation to explore loan options tailored to your business.
- Step 4: Complete Application
- Work with your BDC representative to fill out the loan application form.
- Ensure all information provided is accurate and comprehensive.
- Step 5: Review and Submit
- Review your application for completeness and accuracy.
- Submit the application form along with all supporting documents to BDC.
- Step 6: Confirmation and Follow-Up
- Receive confirmation from BDC regarding the receipt of your application.
- Follow up with BDC as necessary to track the progress of your application.
grant_single_labels|otherInfo
The grant offers specialized financing solutions to address unique financial needs.
- The Business Development Bank of Canada (BDC) provides loan guarantees for certain financing options such as the BDC’s Accelerator Loan Guarantee.
- Financial solutions include the possibility of tailoring loan amounts and repayment terms to match the applicant's cash flow effectively.
- If you have an asset-light business model, BDC offers Growth & Transition Capital solutions without equity dilution.
- Preferred terms and conditions are available for loans exceeding $350,000.
- BDC emphasizes building trust and transparency with applicants to navigate business challenges effectively.
