BDC Financing — Buying a Business 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 with another, or acquire a competitor, this program provides the right support and financing to ensure a smooth transaction.
What You Get
- Higher percentage of financing tailored to your needs
- Payments matched to your cash flow for better financial management
- Preferred terms and conditions for loans over $350,000
Benefits
- Acquire fixed assets like land, buildings, and equipment
- Buyout a business for family succession or management buyout
- Acquire intangible assets such as intellectual property and client lists
This financing is more advantageous than others because it offers an optimal financing structure and extra support from experts who have helped thousands of Canadian entrepreneurs. The terms and conditions are stable, providing you with peace of mind. Plus, qualifying is straightforward, making it easier for you to access the funds you need.
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.
- Repayment Options:
- Monthly principal plus interest payments.
- Blended payments (principal and interest combined).
Eligible Expenses:
- Purchase of fixed assets such as land, buildings, and equipment.
- Acquisition of shares in an existing business.
- Buyout financing for family succession or management buyouts.
- Acquisition of intangible assets like intellectual property, goodwill, and client lists.
Ineligible Expenses:
- Personal expenses.
- Non-business-related activities.
- Speculative investments.
Fees:
- Application Fee: $250.
- Document Preparation Fee: $150.
- Annual Administration Fee: 1% of the loan amount, included in the interest rate.
Qualifications
- Must be a small or medium-sized enterprise (SME).
- Must have a Canada Revenue Agency Business Number.
- Business must be operating in Canada.
Must be involved in sectors such as aerospace, automotive, construction, creation and culture, fisheries, food and beverage, manufacturing, mining, oil and gas, technology, or tourism.
Disqualifications:
- Businesses in the retail/wholesale sector.
- Real estate businesses.
- Government services.
- Personal or social services.
- Softwood lumber industry.
- Professional services such as marketing firms, creative agencies.
Description
This program offers your business a chance to secure loans over $350,000. You can use this money to buy land, buildings, equipment, or shares of an existing business. It also covers intangible assets like intellectual property, goodwill, and client lists.
Key benefits include:
- Flexible financing: Tailored loan and repayment terms to protect your working capital.
- Extra support: Access to experts who have helped thousands of Canadian entrepreneurs.
- Peace of mind: Terms and conditions that remain stable without due cause.
This program is designed to help you grow your business smoothly and efficiently.
Program Steps
Gather Necessary Documentation:
- Business financial statements (last two years)
- Business plan
- Details of intended use of funds (e.g., quotes for equipment, renovation costs)
- Proof of business registration
- Tax returns (last two years)
- Personal identification documents (e.g., driver's license, passport)
Complete the Application Form:
- Fill out the application form provided by the program.
- Ensure all sections are completed accurately.
Prepare a Detailed Business Plan:
- Include an executive summary.
- Outline your business objectives.
- Provide a market analysis.
- Describe your products or services.
- Include financial projections.
Submit the Application:
- Submit the completed application form along with all required documentation.
- Ensure submission is done through the designated platform or to the specified address.
Follow Up:
- Contact the program's support team to confirm receipt of your application.
- Be available to provide any additional information if requested.
Review and Approval:
- Wait for the review process to be completed.
- Respond promptly to any requests for additional information or clarification.
Receive Funding:
- Upon approval, review the final loan terms.
- Sign the necessary agreements.
- Receive the funds and begin using them as outlined in your business plan.