BDC Growth & Transition Capital: Working Capital
You’re looking to raise working capital for growth initiatives but have insufficient tangible assets to secure conventional financing and don’t want to dilute your ownership. Our Growth & Transition Capital experts can offer you a choice of customized growth financing solutions to ensure your project’s success.
Working with our team of expert, experienced professionals who know your local market, your company can raise capital for projects such as R&D, and product and market development, or to invest in intangible assets such as intellectual property and goodwill.
Offered by Business Development Bank of Canada (BDC)
Amount
Financing from $250,000 to $35M, repayable over 2 to 8 years
Quick eligibility check
Who can apply
Our solutions are right for your business if you:
- Run an established or high-growth firm
- Have a strong management team
- Demonstrate quality of financial reporting
*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.
About the funding
Financing from $250,000 to $35M
3 solutions depending on your needs
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 in order to protect your working capital. It’s an alternative that can bridge the gap between senior debt and equity financing to get your project moving forward.
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Cash flow financing for growth projects
Your company has demonstrated a consistent track record of positive and strong cash flow and you want to plan large-scale growth projects. This solution helps you raise the capital you need with stable terms and conditions that provide peace of mind.
Quasi-equity financing to share the risk with us
You run a start-up business that has not yet reached positive cash flow but you forecast that you will generate strong cash flow in the near term. This attractive solution allows you to raise capital to keep cash in your business for daily operations.
- Repay your loan over a period of 2 to 8 years
- Repayment terms adapted to your cash inflows to protect your cash flow; we do balloon and/or cash flow sweeps and/or monthly payments tailored to your needs
- Repay you loan over a period of 3 to 8 years and protect your cashflow
- Postpone your capital payments for the first 24 months
- Repay your loan over a period of 2 to 8 years
- Repayment at the end of the term partially based on forecasted earnings and company’s success
Security is subordinated to secured lenders.
- This means that your chartered bank and long-term lenders will have a right to be repaid before us; this makes it easier for you to borrow.
Limits dilution of ownership and offers an affordable alternative to equity financing.
- In most cases, BDC will require no shareholder agreement, management rights and no board of directors representative; this ensures that your business stays in your hands.
Working with our team of expert, experienced professionals who know your local market, your company can raise capital for projects such as R&D, and product and market development, or to invest in intangible assets such as intellectual property and goodwill.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| BDC Small business loan | Loan | Up to $350,000 per BDC Small Business Loan: up to $100K (up to 6 months interest-only payments, 5-year amortization) or over $100K and up to $350K (up to 12 months interest-only payments, up to 8-year amortization) | Open |
| BDC Working capital loan | Loan | No fixed amount | Open |
| National Creation Fund | Investment | Up to $2,000,000 a year in 9 to 11 projects | Open |
| Advance Payments Program | Loan Guarantee, Loan | Up to $1,000,000 | Open |
