BDC Financing — Purchase Order Loan

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.

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?

• 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.

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.