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BDC Financing — Purchase Order Loan - Canada
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BDC Financing — Purchase Order Loan

Purchase order financing for entrepreneurs
Business Development Bank of Canada (BDC)
Last Update: March 4, 2026
Funding available
$ 100,000 - $ 750,000
Timeline
  • Open Date : March 23, 2022
Location
Canada

Overview

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

/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Access new markets
Eligible Funding
  • Maximum amount : 750,000 $
  • Minimum amount : 100,000 $
  • Up to 90% of project cost
Timeline
  • Open Date : March 23, 2022

Eligible candidates

Eligible Industries
  • Manufacturing
  • Wholesale trade
  • Retail trade
  • Transportation and warehousing
  • Information and cultural industries
Location
  • Canada
Legal structures
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Indigenous Peoples
  • Newcomers to Canada
  • Canadians

Next steps

1
Determine your project
2
Validate your eligibility

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.

Eligibility

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.

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

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?

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

How much funding can be received?

BDC Financing — Purchase Order Loan Funds up to 90% of admissible expenses, capped at $750,000 per project.

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.

What expenses are eligible under BDC Financing — Purchase Order Loan?

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.

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

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

Where is the BDC Financing — Purchase Order Loan available?

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

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

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

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