BDC Capital — Growth & Transition Capital — Working Capital
Highlights
This program is designed for businesses like yours, offering a unique opportunity to secure financing without diluting your ownership. You can access capital ranging from $250,000 to $35 million, tailored to your specific needs. Whether you are looking to fund R&D, market development, or invest in intangible assets like intellectual property, this program provides the flexibility you need.
Key Benefits:
- Customized financing solutions: Choose from mezzanine financing, cash flow financing, or quasi-equity financing based on your business needs.
- Flexible repayment terms: Repay your loan over 2 to 8 years, with options to postpone capital payments for the first 24 months.
- Expert support: Work with experienced professionals who understand your local market and can help you navigate the financing process.
By applying for this program, you can ensure your business has the necessary funds to grow and succeed, all while maintaining control over your company. The qualification process is straightforward, making it easier for you to get the support you need.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment period ranges from 2 to 8 years.
- Flexible repayment options tailored to your cash inflows.
- Options include balloon payments, cash flow sweeps, and monthly payments.
- Initial capital payments can be postponed for the first 24 months.
Eligible Expenses:
- Research and Development (R&D)
- Product and market development
- Investment in intangible assets such as intellectual property and goodwill
Ineligible Expenses:
- Funds cannot be used for personal expenses or non-business-related activities.
Fees:
- No specific fees are mentioned for this program.
Qualifications
- Must run an established or high-growth firm.
- Must have a strong management team.
- Must demonstrate quality of financial reporting.
- Must have demonstrated a consistent track record of positive and strong cash flow (for cash flow financing).
Must forecast strong cash flow in the near term (for quasi-equity financing).
Disqualifications:
- Insufficient tangible assets to secure conventional financing.
- Businesses that do not want to dilute ownership.
Description
This program offers your business a chance to raise between $250,000 and $35 million. You can use this money for various growth projects like research and development, product and market development, or investing in intangible assets such as intellectual property and goodwill.
Three financing options are available to suit your needs:
Mezzanine Financing: This option provides flexible repayment terms tailored to your cash flow. It bridges the gap between senior debt and equity financing, allowing you to move your project forward without diluting ownership.
Cash Flow Financing: If your business has a strong track record of positive cash flow, this option helps you plan large-scale growth projects with stable terms and conditions.
Quasi-Equity Financing: Ideal for start-ups not yet generating positive cash flow but expecting strong cash flow soon. This option allows you to raise capital while keeping cash in your business for daily operations.
You can repay the loan over 2 to 8 years, with repayment terms adapted to your cash inflows. This flexibility helps protect your cash flow and ensures you can focus on growing your business.
Program Steps
Gather Necessary Documentation:
- Financial statements (balance sheet, income statement, cash flow statement)
- Business plan
- Details of intended use of funds (e.g., quotes for equipment, project costs)
- Proof of business registration
- Tax returns
Complete the Application Form:
- Fill out the application form provided by the program. Ensure all sections are completed accurately.
Submit the Application:
- Submit the completed application form along with the gathered documentation to the designated submission portal or office.
Review and Follow-Up:
- Monitor the status of your application. Be prepared to provide additional information or clarification if requested by the program administrators.
Await Approval:
- Once your application is reviewed, you will be notified of the decision. If approved, you will receive details on the next steps.
Finalize Loan Terms:
- Discuss and agree on the final loan terms, including interest rates, repayment schedule, and any associated fees.
Receive Funds:
- Upon finalizing the terms, the funds will be disbursed to your business account, allowing you to proceed with your planned initiatives.