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BDC Financing — Buying a Business Loan
Last Update: March 4, 2026
Canada
Loan to buy an existing business
Loans and Capital investments
Overview
Get an asset-based loan to acquire an existing business or the business of a competitor or supplier.
At a glance
Funding available
Financing goals
- Buying or selling a company
Eligible Funding
- No Condition
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
- Retail trade
- Information and cultural industries
- Accommodation and food services
- Other services (except public administration)
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Newcomers to Canada
- Canadians
Activities funded
- 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:
$ 80,000
Acquire an existing coffee shop including fixed and intangible assets
$ 120,000
Acquire a competitor's gym equipment to expand fitness center operations
$ 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
Eligibility
- 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
- 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.
