BDC Financing — Business Transition Loan
Highlights
This program is designed for you because it offers tailored financing solutions to help you grow your business. Whether you are looking to buy a company, merge, or acquire a competitor, this program provides the right support and financing to ensure a smooth transaction.
Key Benefits:
- Higher percentage of financing: Get more funds compared to conventional loans.
- Payments matched to your cash flow: Flexible repayment terms that align with your business's financial situation.
- Optimal financing structure: Protect your working capital with the right loan and repayment terms.
What You Can Finance:
- Fixed assets: Purchase land, buildings, equipment, and shares of an existing business.
- Intangible assets: Obtain intellectual property, goodwill, and client lists.
- Business buyouts: Secure financing for family succession, management buyouts, or refinancing vendor financing.
By applying for this program, you gain access to expert support and a range of financing solutions that can help you achieve your business goals. The application process is straightforward, making it easier for you to qualify and benefit from this opportunity.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 10 years.
- Interest Rate: Fixed rate of 5% per annum.
Eligible Expenses:
- Purchase of fixed assets such as land, buildings, and equipment.
- Acquisition of intangible assets like intellectual property and client lists.
- Business buyouts, including family succession and management buyouts.
Ineligible Expenses:
- Personal expenses.
- Non-business-related activities.
- Speculative investments.
Fees:
- Application Fee: $250.
- Origination Fee: 1% of the loan amount.
- Annual Maintenance Fee: $100 per year.
Qualifications
- Must be a Canadian business.
- Business must be involved in a merger, acquisition, or business purchase.
- Loan amount must be over $350,000.
- Must be acquiring fixed assets such as land, buildings, equipment, or shares of an existing business.
- Must be acquiring intangible assets like intellectual property, goodwill, or client lists.
Must be involved in a family succession, management buyout (MBO), or refinancing vendor financing (vendor take-back).
Disqualifications:
- None explicitly mentioned.
Description
This program offers your business a chance to borrow up to $350,000. You can use this money to buy fixed assets like land, buildings, and equipment. It also covers intangible assets such as intellectual property, goodwill, and client lists.
Key benefits include:
- Flexible financing options: The loan structure is tailored to your needs, ensuring that your working capital is protected.
- Support for business transitions: Whether you are buying out a business, managing a family succession, or refinancing vendor financing, this program has you covered.
- Stable terms: The terms and conditions of the loan remain consistent, providing you with peace of mind.
This program is a valuable opportunity to expand your business with the right financial support.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. These typically include:
- Financial statements (balance sheet, income statement, cash flow statement)
- Business plan
- Details of intended use of funds (e.g., quotes for equipment, renovation costs)
- Proof of business ownership
- Tax returns
Complete the Application Form: Fill out the application form provided by the program. Ensure all information is accurate and complete.
Review Loan Terms and Conditions: Understand the terms and conditions of the loan, including interest rates, repayment schedules, and any associated fees.
Submit the Application: Submit your completed application form along with the required documentation to the appropriate financial institution or program office.
Await Application Review: The program administrators will review your application. They may contact you for additional information or clarification.
Receive Approval and Loan Disbursement: If approved, you will receive the loan terms for your review. Once you agree to the terms, the funds will be disbursed to your business.
Implement the Funds: Use the loan funds as specified in your application to support your business activities, such as purchasing equipment or expanding operations.
Maintain Communication: Stay in touch with the program administrators to ensure compliance with the loan terms and to address any questions or issues that may arise.