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
The BDC Prêts pour acheter de l’équipement does not specify any particular geographical restrictions, indicating that eligibility is likely open to companies across Canada. As it is offered by the Business Development Bank of Canada, it may be assumed to be available nationwide, but this should be confirmed through direct consultation with BDC.
grant_single|admissibleProjectsExample
$437,500
Purchase modern manufacturing equipment to increase production capacity
$218,750
Acquire specialized lab equipment to enhance research capabilities
$212,500
Acquire new theater equipment to enhance community cultural activities
$187,500
Upgrade production line with new automated machinery for increased efficiency
$412,500
Purchase a fleet of electric delivery vehicles to modernize our delivery operations
$175,000
Invest in new IT infrastructure to streamline business operations
grant_single_labels|admissibility
Eligibility for the BDC Equipment Purchase Loan is generally related to the applicant's business operations and their plans for equipment acquisition and business growth.
- The business must be seeking to expand, modernize, or replace outdated machinery.
- The loan is applicable for acquiring new or used equipment, including production machinery, automated tools, computer hardware, or specialized instruments.
- The loan can also be used for purchasing commercial vehicles or for enhancing operational efficiency.
- Applicants should be planning to improve production capacity or improve the efficiency of business operations.
- Businesses must seek to replenish working capital depleted by equipment costs.
grant_eligibility_criteria|who_can_apply
BDC Prêts pour acheter de l’équipement is designed for business owners looking to expand and modernize operations, or to replace outdated machinery. It provides funding for acquiring new or used equipment and computers to enhance production capacity and promote growth. You can finance production line equipment, automated tools, robotics systems, computer hardware, and specialized instruments."
grant_eligibility_criteria|eligible_expenses
This financing solution is aimed at helping businesses to enhance their production capabilities and upgrade outdated machinery. Eligible activities focus on increasing production capacity, improving efficiency, and providing flexibility in financial management.
- Purchasing production line equipment, automated tools, robotics systems, computer hardware, or specialized instruments such as laboratory equipment.
- Investing in commercial vehicles or modernizing business operations to improve efficiency.
- Replenishing working capital depleted by equipment costs, thereby enhancing credit margin.
- Covering transportation, installation, and training costs associated with new equipment acquisitions.
grant_eligibility_criteria|zone
The loan for equipment purchase from BDC Prêts covers expenses related to acquiring and utilizing equipment for business enhancement.
- Cost of purchasing new or used equipment and computers.
- Expenses related to transportation of equipment.
- Installation fees for setting up equipment.
- Training costs for using new equipment.
grant_single_labels|register
- Step 1: Initial Inquiry
- Contact a BDC representative to discuss your equipment financing needs and eligibility.
- Gather preliminary information on potential financing solutions tailored to your business.
- Step 2: Application Preparation
- Collect necessary financial documents such as recent financial statements, business plan, and equipment purchase details.
- Outline the purpose of the equipment purchase and how it will benefit your business.
- Step 3: Complete Application Form
- Access the BDC online application portal or request a paper form, if available.
- Fill out the application form with accurate business information and financial data.
- Step 4: Submit Application
- Upload or send your completed application form along with all required documents through the BDC portal or via mail.
- Ensure all sections are complete and documents are attached before submission.
- Step 5: Application Review
- Wait for the BDC to review your application. They may contact you for further information or clarification.
- Step 6: Approval and Funding
- Receive notification of approval and review the loan terms and conditions if your application is successful.
- Once terms are agreed, access the funds as per the disbursement schedule outlined by BDC.
grant_single_labels|otherInfo
The Prêt pour équipement program offers unique benefits and customizable options for Canadian businesses:
- Financing extends up to 125% of the equipment purchase price, allowing applicants to cover additional related costs.
- Borrowers have up to 12 years to repay the loan, offering long-term financial planning benefits.
- Initial capital payments can be deferred for up to 24 months, providing cash flow flexibility.
- The loan can be utilized to improve production capacity and efficiency or replenish working capital depleted by equipment costs.
- Payment schedules can be adjusted to align with business cash flows, optimizing financial management.
- Additional funding is available to cover transportation, installation, and training costs associated with the equipment.
Apply to this program
Flexible Equipment Financing for Business Growth
The BDC Equipment Purchase Loan offers comprehensive financing solutions to businesses looking to expand or modernize their operations through the acquisition of equipment. With the ability to finance up to 125% of the purchase cost, this loan facilitates acquiring both new and used equipment, enhancing productivity and operational efficiency.
Exploring the BDC Equipment Purchase Loan and Its Benefits for Your Business
The BDC Equipment Purchase Loan is explicitly designed for businesses that are aiming to expand capacity or replace outdated machinery and equipment. By financing up to 125% of the costs involved, including transportation, installation, and training, businesses can have peace of mind knowing that they are fully supported in their growth endeavors without compromising their cash flow for everyday operations. This financial product allows repayments to be tailored to a company’s cash flow, easing the financial burden and providing unmatched flexibility for payment scheduling.
A distinguishing feature of this loan is that it allows a repayment period of up to 12 years, making it a viable long-term investment strategy for companies aiming for sustained growth. Additionally, businesses can benefit from a deferment period of up to 24 months for principal payments, offering considerable breathing room to invest in and integrate new assets without immediate financial pressure.
Benefiting industries include manufacturing, where upgrading production lines or adopting automated tools can significantly boost productivity and competitiveness. Similarly, businesses in sectors requiring specialized instruments, like laboratories or tech firms requiring cutting-edge computing equipment, will find this loan advantageous. Moreover, commercial enterprises needing to update their vehicle fleets can also utilize this loan to modernize and benefit from more efficient, reliable transportation solutions.
Another strategic advantage of leveraging the BDC Equipment Purchase Loan is its effect on enhancing working capital positions. By funding these costly purchases through the loan, businesses can preserve their lines of credit for other operational necessities. This move bolsters the company’s liquidity position, providing ample funding capacity for other aspects of business operation or unforeseen expenditures.
Small and medium-sized enterprises (SMEs), which often experience financial constraints in deploying new technologies or expanding their operational capacity, stand to gain significantly from such a financial solution. The ability to invest in modern equipment without the immediate high capital outlay allows SMEs to stay competitive, respond swiftly to market demands, and scale effectively when opportunities arise.
The BDC Equipment Purchase Loan, therefore, represents a strategic financial instrument for businesses wishing to maximize efficiency and productive capability while maintaining healthy cash reserves for their regular operations. This tailored approach to equipment financing underscores BDC's commitment to fostering growth and innovation in the Canadian business landscape. By providing a structured yet flexible loan option, BDC supports businesses in achieving their expansion goals with reduced risk and optimal financial management.
