BDC Purchase Order Financing
no fixed amount
Purchase Order Financing
Description:
The Business Development Bank (BDC) Purchase Order offers financing to businesses that want to take on new business opportunities and are short of cash. Businesses can increase their cash flow to fulfill large orders without shortchanging their operations.
Financing can be used to:
1. complement a line of credit (accept larger contracts, purchase inventory to fulfill orders quickly),
2. launch growth projects (expand into new markets, domestic or international),
3. improve profitability (pay suppliers upfront to get special discounts, avoid currency exchange fluctuations).
Comments on Funding:
Funding is up to 90% to cover a significant portion of Purchase Order(PO) amount.
Loan terms:
1. up to 18 months repayment period;
2. interest-only payments and one balloon payment at the end of the term;
3. loan disbursement to the applicant so he can pay suppliers directly. No factoring on the loan.
4. money disbursed in Canadian or U.S. funds to avoid dealing with currency exchange fluctuations.
Currently accepting applications
Eligibility:
Applicants must:
1. be businesses of Canadian citizens or permanent residents;
2. have reached the age of majority in the province or territory in which they live;
3. have a business that has been in operations for at least 12 months.
Application Steps:
Applicants must:
1. complete an online business loan request providing a few details about the business, the project and contact information;
2. further discuss with a BDC representative when contacted.
Documentation Needed:
No specific documentation has been identified.
Other Things to Note:
About the author
Maurice
