BDC Financing — Purchase Order Loan
Canada
Purchase order financing for entrepreneurs
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateMarch 23, 2022
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Wholesale trade
- Retail trade
- Transportation and warehousing
- Information and cultural industries
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 help your business pay suppliers upfront, expand into new markets and fulfill orders quickly.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$450,000
Scale up eco-friendly packaging manufacturing by purchasing new machinery and negotiating bulk orders
$200,000
Expand community arts programs by funding new events and purchasing necessary supplies
$500,000
Launch a new AI-based financial advisory service by developing software and hiring experts
$250,000
Expand organic food market presence by purchasing new inventory and accepting larger contracts
$500,000
Upgrade software platform and expand IT services to handle larger client contracts
$500,000
Enhance textile recycling facilities by purchasing advanced sorting equipment and expanding operations
grant_single_labels|admissibility
Eligibility for this financing is based on the applicant meeting certain business and operational criteria.
- The business must have been generating revenues for 12-24 months.
- The financing must be used for specific purposes such as complementing a line of credit, accepting larger contracts, purchasing inventory, launching growth projects, expanding into new markets, or improving profitability.
- Applicants may need to be either Indigenous entrepreneurs or newcomers to Canada for certain solutions.
- Approval is subject to certain conditions that must be met by the applicant.
grant_eligibility_criteria|who_can_apply
This program is designed to support small businesses in Canada, especially those that have been generating revenue for 12-24 months and are seeking financial solutions to manage large purchase orders. It is particularly suited for businesses looking to expand operations or enhance cash flow without impacting existing operations.
- Indigenous entrepreneurs and newcomers to Canada who are seeking tailored financial solutions.
- Businesses requiring up to 90% financing of the Purchase Order amount.
- Companies needing flexible repayment terms aligned with their Purchase Order payment terms.
- Enterprises wishing to avoid dealing directly with currency exchange fluctuations.
grant_eligibility_criteria|eligible_expenses
This grant is designed to assist businesses with improving their financial liquidity to seize new opportunities and enhance their operational capabilities. Eligible activities for this financing option focus on augmenting cash flow to meet large-scale demands without harming the company's ongoing operations.
- Complementing your existing line of credit for improved cash management.
- Accepting larger contracts and purchasing the necessary inventory to fulfill orders efficiently.
- Initiating growth projects and entering new markets both domestically and internationally.
- Enhancing profitability by paying suppliers upfront to secure discounts and mitigate currency exchange risks.
grant_eligibility_criteria|zone
This financing solution supports various expenses related to executing large purchase orders and business growth opportunities.
- Inventory purchases to fulfill new orders.
- Upfront payments to suppliers to leverage discounts.
- Costs associated with expanding into new domestic or international markets.
- Payments for launching growth projects.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Preliminary Assessment
- Review eligibility criteria to ensure your business qualifies for the loan.
- Gather necessary financial and business documents for application.
- Step 2: Initial Contact with BDC
- Contact BDC to express interest and discuss potential loan options.
- Obtain the application form and detailed instructions.
- Step 3: Complete Application Form
- Fill out the application form with detailed business information.
- Include financial statements, business plans, and purchase order details if applicable.
- Step 4: Compile Supporting Documents
- Prepare all supporting documents such as proof of revenues, projected cash flows, and supplier agreements.
- Ensure documents are recent and accurate.
- Step 5: Submit Application
- Submit the completed application form and all supporting documents to BDC.
- Use BDC’s online portal, if available, or follow provided instructions for submission.
- Step 6: Application Review
- Wait for BDC to review your application.
- Be available to provide additional information if requested.
- Step 7: Receive Loan Offer
- If approved, receive a loan offer outlining terms and conditions.
- Review offer and consult with financial advisors as necessary.
- Step 8: Finalize Loan Agreement
- Sign the loan agreement and complete any additional paperwork required by BDC.
- Arrange for loan disbursement to your account.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The loan offers unparalleled flexibility, allowing for interest-only payments and a balloon payment at the end of the term.
- Financing is discrete, with loan disbursements made directly to the business, avoiding client involvement with BDC.
- The loan can be issued in Canadian or U.S. funds to mitigate currency exchange risks.
