BDC Financing — Equipment Purchase Loan
Highlights
This program is designed for you to help expand and modernize your business. It offers up to 125% financing to cover the purchase cost and related expenses of new or used equipment. You can repay the loan over up to 12 years, with the option to postpone principal payments for the first 24 months. This flexibility allows you to match payments to your cash flow cycle, ensuring you have the funds needed for daily operations.
Key Benefits:
- Increase capacity: Purchase production line machinery, hardware, or specialized equipment.
- Improve efficiency: Invest in commercial vehicles or modernize operations.
- Replenish working capital: Complement your line of credit depleted by equipment costs.
This financing solution is tailored to your needs, offering unparalleled flexibility and extra financing for shipping, installation, and training costs. The terms and conditions are stable, providing you with peace of mind. Applying is straightforward, and approval can significantly boost your business growth and productivity.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Up to 12 years to repay the loan.
- Up to 24 months of principal payments postponement at the start of the loan.
Eligible Expenses:
- Purchase of new or used equipment and hardware.
- Production line machinery.
- Specialized equipment such as lab material.
- Commercial vehicles.
- Modernizing operations.
- Replenishing working capital depleted by equipment costs.
Use of Funds:
- Funds cannot be used for non-business-related expenses or any purpose not specified in the eligible expenses.
Fees:
- No specific fees mentioned for this program.
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 one of the following industries:
- Aerospace
- Automotive
- Construction
- Creation and culture
- Fisheries
- Food and beverage
- Manufacturing
- Mining
- Oil and gas
- Technology
- 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 up to 125% financing to cover the purchase cost of new or used equipment and related expenses. You can use this money to buy production line machinery, hardware, or specialized equipment like lab materials. It can also help you invest in commercial vehicles or modernize your operations.
Key benefits include:
- Increase capacity: Purchase machinery and equipment to boost production.
- Improve efficiency: Invest in new technology or vehicles to streamline operations.
- Replenish working capital: Use the funds to cover equipment costs without depleting your cash reserves.
You have up to 12 years to repay the loan, with the option to postpone principal payments for up to 24 months at the start. This flexibility allows you to match payments to your cash flow cycle, ensuring you have the money needed for daily operations. The terms and conditions are stable, providing peace of mind as you grow your business.
Program Steps
Gather Necessary Documentation:
- Financial statements (last two years)
- Business plan
- Details of intended use of funds (e.g., quotes for equipment or renovation costs)
- Tax returns (last two years)
- Identification documents (e.g., business registration, owner’s ID)
Complete the Application Form:
- Fill out the application form provided by the program.
- Ensure all fields are accurately completed.
Review Loan Terms and Repayment Options:
- Understand the repayment options, interest rates, and amortization period.
- Choose the option that best fits your business’s financial situation.
Submit the Application:
- Submit the completed application form along with the gathered documentation.
- Ensure all required documents are included to avoid delays.
Contact Program Support:
- Reach out to the program’s support team for any questions or assistance.
- Use the provided contact details (phone or email) for guidance.
Await Application Review:
- The program administrators will review your application.
- Be prepared to provide additional information if requested.
Approval and Loan Disbursement:
- Upon approval, review the final loan terms.
- Sign the loan agreement.
- Receive the loan funds to proceed with your business plans.