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|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.
grant_single_labels|projects
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.
grant_single|admissibleProjectsExample
$ 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
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
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.
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.
