BDC Financing — Purchase Order Loan

Q: How much funding can be received?

BDC Financing — Purchase Order Loan Funds up to 90% of admissible expenses, capped at $750000 per project.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the BDC Financing — Purchase Order Loan a grant, loan, or tax credit?

BDC Financing — Purchase Order Loan is a Loans and Capital investments

Q: Who are the financial supporters of the BDC Financing — Purchase Order Loan?

BDC Financing — Purchase Order Loan is funded by Business Development Bank of Canada (BDC), Government of Canada

Q: Who is eligible for the BDC Financing — Purchase Order Loan program?

To be eligible for the BDC Financing — Purchase Order Loan program, you must: • Business must have been generating revenues for 12-24 months. • Solutions available specifically for Indigenous entrepreneurs and newcomers to Canada may apply.

Q: Who can I contact for more information about the BDC Financing — Purchase Order Loan?

You can contact Business Development Bank of Canada (BDC).

Q: Where is the BDC Financing — Purchase Order Loan available?

The BDC Financing — Purchase Order Loan program is available across Canada.

Q: Are Indigenous Peoples eligible for the BDC Financing — Purchase Order Loan program?

Yes, Indigenous Peoples are eligible to apply for the BDC Financing — Purchase Order Loan program.

Last Update: July 22, 2025

Canada

Purchase order financing for entrepreneurs

At a glance

Eligible Funding

From $100,000 to $750,000
Up to 90% of project cost

Timeline

Open Date : March 23, 2022

Financing Type

Loans and Capital investments

Eligible Industries

Manufacturing
Wholesale trade
Retail trade
Transportation and warehousing
Information and cultural industries

Funds Providers

Unspecified

Program status

Open

Overview

Get a loan to help your business pay suppliers upfront, expand into new markets and fulfill orders quickly.

Financing terms and conditions

The BDC Financing — Purchase Order Loan provides versatile financing arrangements to enable businesses to fulfill large purchase orders efficiently. This loan option is designed to enhance cash flow and facilitate operations seamlessly under tailored payment terms.

Up to 90% financing to cover a significant portion of the purchase order amount, excluding taxes, deposits, and other payments received from the buyer.
Flexible loan repayment terms aligned with purchase order payment terms, featuring interest-only payments and a single balloon payment at the end of the term.
Loan term of up to 18 months to ensure manageable repayment timelines.
Payments can be disbursed in Canadian or U.S. funds to mitigate currency exchange risks.
Discrete financing allowing businesses to settle with suppliers directly, maintaining client independence from BDC interactions.
Designed to complement existing lines of credit, enabling businesses to take on larger contracts and launch growth projects with improved profitability.

Activities funded

This financing option supports Canadian businesses in enhancing their operational capacity by fulfilling significant purchase orders. It aims to enable businesses to manage large contracts and growth efficiently without financial strain.

Complement existing lines of credit to accept larger contracts and quickly purchase inventory for fulfilling orders.
Facilitate the launch of growth projects and expansion into new domestic or international markets.
Enhance profitability by paying suppliers upfront to secure special discounts and avoid currency exchange fluctuations.
Benefit from flexible repayment aligned with purchase order payment terms, including interest-only payments and a balloon payment at the term's end.

Examples of admissible projects:

$ 200,000

Expand community arts programs by funding new events and purchasing necessary supplies

$ 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

$ 450,000

Scale up eco-friendly packaging manufacturing by purchasing new machinery and negotiating bulk orders

$ 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

Eligibility

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.

Who is eligible?

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.

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.

Eligible geographic areas

The BDC Purchase Order Loan is available to businesses throughout Canada, supporting a wide range of companies from various regions to fulfill large purchase orders effectively.

Available nationwide across all Canadian provinces and territories.

How to apply

Preliminary Assessment

Review eligibility criteria to ensure your business qualifies for the loan.
Gather necessary financial and business documents for application.

Initial Contact with BDC

Contact BDC to express interest and discuss potential loan options.
Obtain the application form and detailed instructions.

Complete Application Form

Fill out the application form with detailed business information.
Include financial statements, business plans, and purchase order details if applicable.

Compile Supporting Documents

Prepare all supporting documents such as proof of revenues, projected cash flows, and supplier agreements.
Ensure documents are recent and accurate.

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.

Application Review

Wait for BDC to review your application.
Be available to provide additional information if requested.

Receive Loan Offer

If approved, receive a loan offer outlining terms and conditions.
Review offer and consult with financial advisors as necessary.

Finalize Loan Agreement

Sign the loan agreement and complete any additional paperwork required by BDC.
Arrange for loan disbursement to your account.

Additional information

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.

Documents and links

BDC Financing — Purchase Order Loan

Apply to this program

Frequently Asked Questions about the BDC Financing — Purchase Order Loan Program

Here are answers to the most common questions about the BDC Financing — Purchase Order Loan. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the BDC Financing — Purchase Order Loan?

How much funding can be received?

What is the deadline to apply?

Is the BDC Financing — Purchase Order Loan a grant, loan, or tax credit?

Who are the financial supporters of the BDC Financing — Purchase Order Loan?

Who is eligible for the BDC Financing — Purchase Order Loan program?

Who can I contact for more information about the BDC Financing — Purchase Order Loan?

Where is the BDC Financing — Purchase Order Loan available?

Are Indigenous Peoples eligible for the BDC Financing — Purchase Order Loan program?

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