BDC Equipment purchase financing (2022)

Description:

BDC helps Canadian businesses invest in equipment to expand and modernize operations, or replace outdated machinery so that they can increase production and fuel their growth.

Financing can be used to:

  1. increase capacity (purchase production line machinery, equipment, or specialized equipment such as lab material),

  2. improve efficiency (invest in commercial vehicles or modernize operations),

  3. complement their line of credit (replenish working capital depleted by equipment costs).

Comments on Funding:

Funding is up to 125% of the purchase cost and expenses and starts at $100,000 for businesses that have been in operation for more than 24 months.

The above-mentioned amounts are requested by the online application system when trying to apply.

Loan terms:

  1. up to 12 years repayment period;
  2. up to 24 months principal postponement at the start of the loan.
  3. BDC doesn’t take personal assets as collateral for the loan.

Eligibility:

  • be Canadian citizens or permanent residents;
  • have reached the age of majority in the province or territory in which they live;
  • have a business that has been in operations for at least 24 months.

Applications Steps:

Applicant must:

Documentation Needed:

Some preliminary documentation:

  • Sales forecasts to show how an equipment purchase will impact revenue and profit.
  • An explanation of how the equipment will increase sales or improve efficiency.
  • Financial statements to show the company’s financial health.

Other Things to Note:

The application portal asks for how long has the business been in operation. If the applicant selects “between 12-24 months”, he is redirected towards a different program (i.e., Start-up financing). I concluded that only businesses older than 24 months are allowed to apply.

Testimonials:

“I’m a relationship builder, so we’re loyal to BDC because the bank really wants us to succeed. With their financing, we’ve been able to grow a profitable business.” – Cristen DeCarolis, Pizzeria Prima Strada

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    Equipment purchase financing

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