BDC Working Capital Financing Options

In order to stay competitive in the modern business economy, companies must invest in R&D activities and adopt new technologies. Most companies incorporated in Canada have the opportunity to receive financing for these activities via the Business Development Bank of Canada (BDC)’s Working Capital Loan. This long-term financing option complements businesses’ existing line of credit and provides extra leverage needed to free up cash flow and preserve the working capital.

BDC Working Capital Loan Details

This BDC financing program for working capital provides up to $500,000 in loans with long-term amortization periods and seasonal or progressive payment schedules to protect the business’ cash flow.

For smaller projects that require $50,000 or less, applications can be processed via the Virtual Banking Centre within 3 business days and financing would be provided at a preferential rate of prime + 1%. This program can be used for a wide range of working capital projects, including:

• New product and market development
• Quality management standards adoption (ISO and HACCP)
• Boost inventory for increased sales
• Technology development

There is also an option to defer principal payments in order to accelerate the project’s execution. The loan does not take on personal assets as collateral. BDC is accepting applicants for this financing option via 1-877-BDC-BANX (1-877-232-2269).

Government Funding Options for Business Expansion

Canadian companies can also leverage government incentives in the form of grants and loans to support working capital. To learn what business expansion grants and loans are available to your business, please contact a Government Funding Expert or Register for an Upcoming Funding Workshop/Webinar. You can also keep track of funding news and updates by Subscribing to a Free Weekly Funding E-Newsletter.