BDC Financing — Equipment Purchase Loan
Canada
Loans to purchase equipment
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Transportation and warehousing
grant_single|grantors
- Business Development Bank of Canada (BDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a loan to cover up to 125% of the purchase cost of new or used equipment for your business.
grant_single_labels|projects
This grant provides funding for purchasing new or used equipment, computers, and vehicles, aiming to increase production capacity and improve operational efficiency.
- Acquire production line equipment, automated tools, robotics systems, computer hardware, or specialized instruments like laboratory equipment.
- Invest in commercial vehicles or modernize business operations.
- Refill working capital depleted by equipment costs.
grant_single|admissibleProjectsExample
$437,500
Edmonton
Purchase modern manufacturing equipment to increase production capacity
$218,750
Montreal
Acquire specialized lab equipment to enhance research capabilities
$212,500
Halifax
Acquire new theater equipment to enhance community cultural activities
$187,500
Toronto
Upgrade production line with new automated machinery for increased efficiency
$412,500
Vancouver
Purchase a fleet of electric delivery vehicles to modernize our delivery operations
$175,000
Calgary
Invest in new IT infrastructure to streamline business operations
grant_single_labels|admissibility
The BDC Equipment Financing Loan is designed to help businesses expand or modernize their activities by acquiring new or used equipment and computers. Here are the eligibility criteria for this grant:
- Eligible for businesses aiming to enhance production capacity
- Suitable for purchasing production equipment, automated tools, robotics systems, computer equipment, or specialized instruments such as laboratory equipment
- Can be used to invest in commercial vehicles or modernize activities
- Eligible businesses may use the loan to replenish working capital depleted by equipment costs
grant_eligibility_criteria|who_can_apply
Any companies planning to expand and modernize their activities or replace outdated machinery are eligible for this grant. Whether they are looking to increase production capacity, improve efficiency, or replenish working capital, this financing can support their needs.
- Companies acquiring new or used production equipment
- Businesses investing in commercial vehicles
- Enterprises aiming to purchase automated tools or robotics systems
- Organizations needing specialized equipment such as laboratory instruments
- Firms upgrading their IT infrastructure
grant_eligibility_criteria|eligible_expenses
This grant covers various expenses related to the purchase of equipment to enhance production capacity and improve efficiency.
- Purchase of production equipment
- Automated tooling
- Robotic systems
- Computer hardware
- Specialized instruments like laboratory equipment
- Commercial vehicles
- Modernization activities
- Working capital replenishment
- Transportation costs
- Installation costs
- Training costs
grant_eligibility_criteria|zone
BDC's Prêt pour équipement is available throughout Canada, providing financial support for acquiring new or used equipment to enhance business operations.
- Entirety of Canada
grant_single_labels|register
- Step 1: Assess Eligibility
- Ensure your business activities align with the grant's funding purposes, such as acquiring equipment, increasing production capacity, or modernizing operations.
- Step 2: Gather Necessary Financial Documents
- Prepare financial statements, business plans, quotes for the equipment, and any other relevant financial documentation.
- Step 3: Contact BDC
- Reach out to the Business Development Bank of Canada (BDC) to discuss your needs and confirm the appropriate financing solution.
- Step 4: Fill Out the Application
- Complete the loan application form provided by BDC with detailed information about your business and the intended use of funds.
- Step 5: Submit Documentation
- Submit your application along with all required documentation, including financial statements, quotes, and business plans.
- Step 6: Review and Approval
- Wait for BDC to review your application and approve the loan. They may request additional information or clarification during this process.
- Step 7: Accept Loan Terms
- Once approved, review and accept the loan terms provided by BDC. This could include making adjustments to the repayment schedule as needed.
- Step 8: Disbursement of Funds
- Receive the loan funds and use them for the equipment purchase and associated expenses as planned.
- Step 9: Implementation and Reporting
- Implement the equipment purchase, installation, and training as necessary. Maintain records and report back to BDC as required by the loan terms.
grant_single_labels|otherInfo
The BDC offers financing options for new or used equipment and computers with flexible repayment terms and additional funding for related expenses.
- Financing up to 125% for acquisition costs and related expenses.
- Repayment terms up to 12 years.
- Option to defer principal payments for up to 24 months.
- Invest in production equipment, automated tools, robotics systems, IT hardware, specialized instruments like lab equipment or commercial vehicles.
- Flexible payment plans based on cash flow.
- Funding available for transportation, installation, and training costs.
Apply to this program
Summary of BDC Equipment Purchase Loan
The BDC Equipment Purchase Loan offers up to 125% financing for new or used equipment, including associated costs, with flexible repayment terms. This loan aims to help businesses increase production capacity, improve efficiency, and enhance their credit lines to support growth and modernization efforts.
Detailed Explanation of the BDC Equipment Purchase Loan
The Business Development Bank of Canada (BDC) offers an important financial product designed specifically to help businesses invest in the necessary equipment to grow and enhance their operational efficiency. Known as the BDC Equipment Purchase Loan, this financing solution is tailored to meet the needs of businesses looking to acquire new or used equipment, including computers and specialized machinery, with terms that provide great flexibility and extensive support.
Here’s a comprehensive overview of what the BDC Equipment Purchase Loan entails, its key features, benefits, and potential impact on your business.
Key Features of the BDC Equipment Purchase Loan
1. Up to 125% Financing: The BDC Equipment Purchase Loan offers financing that can cover up to 125% of the cost of the equipment you intend to purchase. This additional 25% is designed to cover associated expenses such as transportation, installation, and training costs, ensuring that businesses have the capital they need to fully integrate the new equipment into their operations.
2. Flexible Repayment Terms: One of the standout features of this loan is its repayment period, which can extend up to 12 years. This extended timeframe allows businesses to manage their cash flow more effectively and avoid financial strain.
3. Deferred Payments: The option to defer the principal repayments for up to 24 months provides businesses with the much-needed breathing room to stabilize their finances after making significant equipment investments. During this period, businesses can focus on maximizing the utilization and benefits of the new equipment without rushing the repayment process.
4. Accessibility for Various Equipment Types: This loan supports the purchase of a wide range of equipment. Whether you need equipment for your production line, automated tools, robotic systems, IT hardware, or specialized laboratory instruments, the BDC Equipment Purchase Loan is structured to support these acquisitions.
Benefits of the BDC Equipment Purchase Loan
1. Increased Production Capacity: By investing in new and advanced machinery, businesses can significantly enhance their production capabilities. For manufacturing businesses, this could explain higher output, reduced downtime, and greater efficiency, leading to increased revenue.
2. Enhanced Operational Efficiency: Modernizing your operations with new equipment can lead to streamlined processes, reduced waste, and better quality control. Investing in automated systems, for example, can dramatically improve accuracy and speed, ultimately reducing costs and increasing profitability.
3. Financial Flexibility: The loan's flexible terms allow businesses to structure repayments in a way that aligns with their cash flow patterns. This ensures that funds earmarked for daily operations aren’t drained by hefty loan repayments, maintaining business stability and operational continuity.
4. Working Capital Support: By offering up to 125% financing, the BDC Equipment Purchase Loan enables businesses to maintain their working capital reserves. This is crucial in managing day-to-day expenses and potentially seizing new business opportunities without liquidity constraints.
How to Utilize the BDC Equipment Purchase Loan
The BDC Equipment Purchase Loan can be applied in several strategic ways to maximize your business’s growth and efficiency improvement:
1. Purchasing Production Equipment: Businesses involved in manufacturing can use this loan to buy the latest production line equipment, automated tools, or robotic systems that enhance production efficiency and capacity.
2. Upgrading IT Infrastructure: Investment in new computers, servers, and specialized software can help modernize your IT infrastructure, leading to better data management, enhanced cybersecurity, and improved overall performance.
3. Acquiring Specialized Instruments: Laboratories and research facilities can benefit from updated and specialized instruments, which can improve the accuracy and scope of their research and testing capabilities.
4. Investing in Commercial Vehicles: For businesses that rely on transportation, upgrading to newer, more efficient commercial vehicles can reduce maintenance costs, improve reliability, and enhance your service delivery efficiency.
Application Process for the BDC Equipment Purchase Loan
The application process for the BDC Equipment Purchase Loan is straightforward and designed to provide a quick turnaround. Here are the steps involved:
1. Prepare Your Documentation: Compile all necessary documentation, including your business plan, financial statements, details of the equipment you intend to purchase, and estimates for associated costs like transportation and installation.
2. Submit Your Application: Submit your application through the BDC's online portal or in-person at one of their branches. Ensure your application is complete and all required documents are included to avoid any delays.
3. Review and Approval: The BDC will review your application and may request additional information or clarification. Once your application is approved, you will receive the loan offer outlining the terms and conditions.
4. Funding: Upon acceptance of the loan offer, the funds will be disbursed to your business account. You can then proceed with purchasing the equipment and managing associated expenses.
Conclusion
The BDC Equipment Purchase Loan is a highly versatile and impactful financial product designed to empower Canadian businesses. Whether you are looking to increase your production capacity, improve operational efficiencies, or bolster your financial flexibility, this loan offers the necessary financing and support. With up to 125% financing, extended repayment terms, and the option to defer principal repayments, businesses can make strategic investments without compromising on their daily operations. In a competitive business landscape, harnessing the power of such a loan can be the key to sustainable growth and long-term success.
