BDC Financing — Working Capital Term Loan
Canada
Working capital loan
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
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 complement your line of credit and maintain your cashflow.
grant_single_labels|terms_and_conditions
This financing offers considerable flexibility, allowing businesses to match repayment plans to their cash flow and focus on taking strategic opportunities for growth. By providing a long repayment term and interest-only payments initially, it supports businesses in managing their initial financial outlays while pursuing larger projects.
- Interest-only payments allowed for up to 24 months at the start of the loan.
- Customized repayment schedule aligned with the business's cash flow cycle.
- Loan repayment term of up to 8 years.
grant_single_labels|projects
This grant provides working capital to support various business-related projects that facilitate growth and expansion. Eligible activities include projects from inventory purchases to sustainability initiatives.
- Buying inventory.
- Paying suppliers.
- Expanding into new markets.
- Developing new products.
- Protecting intellectual property.
- Launching a marketing campaign.
- Obtaining industry-specific certifications.
- Hiring or training employees.
- Completing energy efficiency, green retrofit, or sustainability projects.
grant_single|admissibleProjectsExample
$ 40,000
Improve profitability by paying suppliers for dairy products upfront to gain discounts
$ 85,000
Purchase advanced IT equipment to improve service delivery and reduce costs
$ 30,000
Purchase raw materials to fulfill a bulk order of handmade furniture
$ 40,000
Launch a comprehensive marketing campaign for our mobile education app
$ 80,000
Launch a new product line of eco-friendly home cleaning supplies
$ 30,000
Expand market presence in Eastern Canada for our artisanal cheese products
grant_single_labels|admissibility
Eligibility for this financing option is determined by specific requirements outlined by BDC for companies seeking loans.
- The company must have been generating revenues for 12-24 months.
- Loans are subject to approval and certain conditions apply.
- Inclusive entrepreneurship loans are available for Indigenous entrepreneurs or newcomers to Canada.
grant_eligibility_criteria|who_can_apply
There are specific types of companies eligible for this grant. Businesses in various sectors can benefit from this financing solution provided by BDC. Eligible sectors include tech companies, small businesses, commercial real estate, equipment loan seekers, and those looking for working capital.
- Tech companies
- Small businesses
- Commercial real estate businesses
- Equipment loan seekers
- Working capital loan applicants
grant_eligibility_criteria|eligible_expenses
This grant offers financing tailored to support business growth and operational improvements, ensuring that financial resources are available for strategic projects without affecting cash flow stability.
- Complementing existing lines of credit.
- Purchasing inventory to quickly fulfill orders.
- Launching growth projects, including expanding into new markets or developing new products.
- Protecting intellectual property and launching marketing campaigns.
- Improving profitability by paying suppliers upfront, obtaining certifications, and training employees.
grant_eligibility_criteria|zone
This grant is available to businesses that are based in Canada. Eligibility is determined by the company's location within Canadian borders.
- Companies based in Canada.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The evaluation and selection criteria include:
- Financial viability of the project
- Potential impact on job creation and economic growth
- Alignment with the grant objectives and priorities
- Evidence of innovation and market potential
- Demonstrated need for funding
grant_single_labels|register
Here are the steps to apply for a BDC loan:
- Step 1: Determine Loan Type
- Identify the specific type of loan that suits your business needs, such as working capital loan, equipment loan, or real estate loan.
- Step 2: Gather Required Information
- Prepare all necessary documents, which may include your business plan, financial statements, cash flow projections, and management profiles.
- Ensure you have detailed project descriptions ready if applying for project-specific financing.
- Step 3: Complete Online Application
- Visit the BDC website and navigate to the loan application section.
- Fill out the online application form with accurate, thorough information about your business and financing needs.
- Step 4: Submit Application
- Review your application thoroughly to ensure all information is correct.
- Submit the application through the BDC’s online portal.
- Step 5: Confirmation of Submission
- Receive a confirmation email from BDC that your application has been received.
- Note your application number for future reference.
- Step 6: Follow-Up
- Monitor your email for any communication from BDC regarding additional requirements or updates on your application status.
- Be prepared to provide further information or clarification if requested by the BDC team.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Loans over $350,000 come with preferred terms and conditions.
- Applicants can benefit from unparalleled flexibility by matching payments to their cash flow cycle.
- BDC offers a "beyond the numbers" approach, considering management expertise and project potential rather than relying solely on banking ratios.
- Financial solutions are available that do not dilute ownership, particularly for asset-light companies or those needing non-conventional financing solutions.
- There are special financing solutions available for Indigenous entrepreneurs and newcomers to Canada.
Apply to this program
Empower Your Business With Flexible Financing Options
Our specialized loans and financing solutions are designed to support small and medium-sized enterprises in Canada, providing them with the necessary capital and flexibility to grow and thrive. From working capital loans to technology equipment financing, we offer tailored financial products that align with the unique needs and growth trajectories of your business.
Detailed Overview of Diverse Business Financing Solutions
In the dynamic landscape of Canadian business, access to flexible and reliable financing can be a game-changer for small and medium-sized enterprises (SMEs). Whether your business is on the cusp of a major growth phase, needs to manage its daily operations smoothly, or is transitioning into new verticals, having the right financial backing is crucial. The comprehensive suite of loans and financial products available through this program is meticulously crafted to cater to a variety of business needs, ensuring that no opportunity is left untapped.
The program offers an array of financial solutions ranging from small business loans and commercial real estate loans to more specialized products like equipment loans and purchase order financing. For businesses that are looking to acquire new technology or pivot into tech-driven domains, the loan options for tech equipment and tech companies are particularly advantageous. Moreover, if your company is considering a strategic acquisition or a business transfer to enhance its footprint, tailored business purchase or transfer loans are available to facilitate this process.
A critical feature of these financial products is the emphasis on maintaining healthy cash flows while embarking on growth and expansion projects. Loans under this program often come with the flexibility of matching payment schedules to the cash flow cycles of the business, thereby preventing any disruption to the day-to-day financial operations. Additionally, you can benefit from postponed principal payments at the start of the loan, often up to 24 months, which offers a vital breather for businesses focusing on deploying capital for immediate growth opportunities.
Another hallmark of this financing suite is its unique "beyond the numbers" approach. Recognizing that raw financial metrics don't tell the complete story, the program places significant weight on factors like management expertise, business potential, and innovation. This ensures that businesses with visionary projects and capable leadership are given the support they deserve, even if their financial metrics are yet to catch up with their potential.
For those businesses headquartered in niche industries or who need creative solutions beyond conventional financing, the Growth & Transition Capital options provide Custom financial structuring. By avoiding equity dilution, these options are perfect for asset-light companies who wish to preserve their ownership while still accessing necessary capital. Moreover, inclusive entrepreneurship loans cater specifically to Indigenous entrepreneurs and newcomers to Canada, reflecting a commitment to diversity and inclusivity in economic growth.
The Borrowing terms are equally attractive, with repayment periods stretching up to 8 years, granting businesses the time needed to channel their efforts fully into growth and stabilization without immediate looming financial pressure. Companies that meet certain criteria can take advantage of loans exceeding $350,000, augmented by preferred terms and flexible conditions.
Esteemed entrepreneurs like Jennifer Brodeur of JB Skin Sävvi and Bastien Poulain of 1642 have effectively leveraged these financing options to propel their businesses forward, as highlighted by their testimonials praising the seamless and understanding partnership provided through these financial solutions.
By choosing these specially designed financing solutions, businesses are not just receiving funds; they are gaining a strategic partner committed to their success and sustainable growth. The application process is streamlined and efficient, ensuring that once approved, funds are promptly available to support business initiatives. This financing approach empowers Canadian businesses to achieve their full potential, foster innovation, and contribute significantly to the national economy.
