BDC Financing — Working Capital Term Loan
Highlights
This program is designed for businesses like yours to help you grow and manage your cash flow effectively. It offers flexible financing solutions that can be tailored to your specific needs, ensuring you have the funds necessary to undertake key projects without risking your daily operations.
Why Apply?
- Up to 8 years to repay your loan, including an initial postponement period.
- Up to 24 months of principal payment postponement at the start of the loan.
- Preferred terms and conditions for loans over $350,000.
Benefits for Your Business
- Complement your line of credit: Purchase inventory quickly to fulfill orders.
- Launch growth projects: Expand into new markets, develop new products, and protect intellectual property.
- Improve profitability: Pay suppliers upfront for discounts, obtain certifications, and train employees.
This financing is more advantageous than others because it offers unparalleled flexibility and a beyond the numbers approach, considering your management expertise and project potential. Approval is straightforward, and funds can be deposited within 24 hours, providing you with peace of mind and the ability to focus on growing your business.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Up to 8 years to repay the loan, including an initial postponement period.
- Up to 24 months of principal payments postponement at the start of the loan.
Eligible Expenses:
- Complement your line of credit.
- Purchase inventory to fulfill orders quickly.
- Launch growth projects such as expanding into new markets, developing new products, protecting intellectual property, and launching marketing campaigns.
- Improve profitability by paying suppliers upfront for discounts, obtaining certifications, and training employees.
Use of Funds:
- Funds cannot be used for everyday operational expenses or any non-business-related activities.
Fees:
- Subject to approval, with certain conditions applying. Specific fees are not detailed but may be associated with the loan application and processing.
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 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.
- Professional services such as marketing firms, creative agencies.
Description
This program offers your business a chance to borrow up to $350,000. This money can be used for various purposes to help your business grow and succeed.
You can use the funds to:
- Complement your line of credit: Purchase inventory to fulfill orders quickly.
- Launch growth projects: Expand into new markets, develop new products, protect intellectual property, or launch a marketing campaign.
- Improve profitability: Pay suppliers upfront to get special discounts, obtain certifications, or train employees.
The loan comes with flexible repayment terms. You can match payments to your cash flow cycle, ensuring you don't use money needed for daily operations. You also get up to 24 months of principal payment postponement at the start of the loan, and up to 8 years to repay in total.
This program is designed to support your business without putting your everyday cash at risk. The terms and conditions are stable, providing you with peace of mind.
Program Steps
Gather Required Documentation: Prepare the necessary documents, including:
- 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 registration
- Tax returns
Complete the Application Form: Fill out the application form provided by the program. Ensure all sections are completed accurately.
Review Loan Terms and Conditions: Understand the loan terms, interest rates, repayment options, and any associated fees. Ensure these terms align with your business needs.
Submit the Application: Submit the completed application form along with the required documentation to the designated office or online portal.
Follow Up: After submission, follow up with the program office to confirm receipt of your application and to address any additional requirements or questions.
Await Approval: The program office will review your application. Be prepared to provide additional information if requested.
Finalize Loan Agreement: Upon approval, review and sign the loan agreement. Ensure you understand all terms and conditions before signing.
Receive Funds: Once the agreement is signed, the funds will be disbursed to your business account.
Implement Your Project: Use the funds as outlined in your application to support your business growth or project.
Repay the Loan: Follow the agreed-upon repayment schedule to repay the loan. Ensure timely payments to maintain a good standing with the program.