BDC Growth & Transition Capital: Buying a Business
You’re looking to raise money to buy a business but have insufficient or no tangible assets to secure conventional financing and don’t want to dilute your ownership. Our Growth & Transition Capital experts can help you put together a financial package that is viable and advantageous.
Our team of experienced professionals will work with you to find the optimal financing structure for raising capital to buy a competitor’s or supplier’s business, for example.
Offered by Business Development Bank of Canada (BDC)
Amount
Financing from $250,000 to $35M, repaid over 3 to 8 years, with capital payments postponed for the first 12 months
Quick eligibility check
Who can apply
- The business is established or high-growth
- Has a strong management team
- Demonstrates quality of financial reporting
- Have insufficient or no tangible assets to secure conventional financing
- To apply for a BDC loan you must be a Canadian citizen or permanent resident and have reached the age of majority in the province or territory in which you live
- They may be able to help you with programs designed for start-up businesses. BDC provides financing for businesses that have been in operation at least 12 months
- Cash flow financing for business acquisition projects: The company targeted in the transaction has demonstrated a consistent track record of positive and strong cash flow
About the funding
- Repay your loan over a period of 3 to 8 years and protect your cash flow
- Postpone your capital payments for the first 12 months
Financing from $250,000 to $35M
- Security is subordinated to secured lenders, which gives you more borrowing power.
Show all funding details
- Limited to no involvement in management, which keeps the business in your hands.
Mezzanine financing customized to your needs
Mezzanine financing offers repayment terms tailored to your business reality. It gives you the freedom to structure the loan according to your cash inflows to protect your working capital. It is an ideal option for financing the goodwill component of the transaction. In addition, it is an alternative that can bridge the gap between other sources of financing (senior debt, vendor take-back, equity) to get the project moving forward.
Cash flow financing for business acquisition projects
The company targeted in the transaction has demonstrated a consistent track record of positive and strong cash flow. This solution allows you to raise sufficient capital to complete the transaction with stable terms and conditions that provide peace of mind.
- Repay your loan over a period of 2 to 8 years
- Repayment terms adapted to your cash inflows in order to protect your cash flow; we do balloon and/or cash flow sweeps and/or monthly payments tailored to your needs
Our team of experienced professionals will work with you to find the optimal financing structure for raising capital to buy a competitor’s or supplier’s business, for example.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| BDC Business purchase or transfer loan | Loan | No fixed amount | Open |
| BDC Growth & Transition Capital: Transfer a business | Loan, Investment | Financing from $250,000 to $35M, repayable over a period of 2 to 8 years, with capital payments postponable for the first 12 months | Open |
| BDC Indigenous Entrepreneur Loan | Loan | Up to $350,000 | Open |
| BDC Newcomer entrepreneur | Loan | Up to $50,000 | Open |
