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Lender
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

BDC

Finanso.Multilogin™

About lender

BDC, also known as Business Development Bank of Canada, provides loans for Canadian small and medium-sized businesses. Founded in 1944, BDC has been around for over 75 years.

Today, BDC works with 72,000 entrepreneurs across Canada. It works with small and medium-sized businesses at every stage of growth.

The services provided by BDC include business loans, advisory services, and specialized financing and investment solutions.

BDC is the first bank in Canada that is a Certified B Corporation. This business acts in ways that benefit society as a whole rather than focusing solely on making profits.

Besides, BDC has been on Canada’s Top Employers list for 15 years.

Features

BDC provides financing and advisory services designed to respond to the needs of Canadian businesses. The repayment terms offered by BDC are quite flexible, and the funding levels are pretty high.

BDC has specialized programs designed to increase the number of Indigenous, Black, women, and other underserved entrepreneurs. Through their Cleantech Practice, BDC invests in companies discovering and commercializing ways to combat climate change and pollution. In addition, BDC’s Venture Capital team supports innovative companies reinventing industries and making them more energy efficient.

Being a long-term commercial lender, BDC doesn’t provide regular banking services, such as bank accounts, credit cards, term deposits, and guaranteed investment certificates. In addition, it doesn’t offer grants, lines of credit, or personal loans.

BDC doesn’t provide loans based just on the assets you have in your business. Instead, they assess your project's potential, management strength, and the cash flow from the business operations to make a credit decision.

Pros and cons

The financing options offered by BDC can be attractive for businesses in different industries and at every stage of growth.

Pros:

  • A wide range of financing options for every stage of a company’s growth

  • Financing options tailored to your reality — for example, programs for Black entrepreneurs, Indigenous entrepreneurs, woman entrepreneurs, and more

  • Access to specialized solutions that go beyond conventional financing

  • No changes to terms and conditions without due cause

  • BDC doesn’t take personal assets as collateral for the loan

  • No fees or charges for early payoff or lump-sum payments

  • An opportunity to postpone your principal payments at the start of the loan

  • Non-financial support and training in the form of advisory services

  • Valuable tools and educational materials for entrepreneurs on the BDC website

Cons:

  • Inability to find out the rates without actually applying for a loan

  • No personal loans

  • No business lines of credit

  • No subsidies or grants

  • No letters of credit issued

So, the advantages of BDO loans for small and medium-sized businesses are pretty obvious. With a variety of financing options and flexible repayment terms, business owners can select solutions tailored to their needs.

As for disadvantages, a lack of information about the rates can be frustrating. Besides, consider another financial institution if you are looking for a personal loan, a line of credit, a grant, or a subsidy.

Loan conditions

Business loan conditions vary depending on the time the company has been on the market.

Businesses operating for less than 12 months can count on programs from BDC’s partners. If your company has been around for less than one year, they invite you to reach out to Futurpreneur Canada. With Futurpreneur Canada, you can get up to $60,000 financing to launch or grow your business. These are collateral-free loans with a 5-year term.

If your business has been operating for 12-24 months, you can get a loan of up to $250,000 from BDC to jumpstart your projects. You can postpone principal payments at the start of the loan.

Businesses in operation for over 24 months can get the advantage of a variety of financing solutions:

  • Small projects financing

  • Commercial real estate financing

  • Business purchase or transfer financing

  • Working capital financing

  • Supply chain support financing

  • Equipment purchase financing

  • Purchase order financing

  • Technology purchase financing

  • Financing for tech companies

Small projects financing

You can get a small business loan of up to $100,000 from BDC. The application for such a loan is 100% online, and there are no application fees. You can postpone principal payments for the first six months with a small business loan. After that, pay off your loan at your pace over five years.

Commercial real estate financing

Next, you can get up to 100% commercial real estate financing from BDO, with a loan term of up to 25 years. In addition, you can get the advantage of up to 36 months of principal payment postponement.

Business purchase or transfer financing

For businesses planning to buy a company, make a merger or acquire a competitor, there is an option to get business purchase or transfer financing. However, BDC doesn’t specify the exact amount you can count on.

Working capital financing

If you need extra working capital to complement your line of credit or launch growth projects, you can apply for working capital financing. The loan term is up to 6 years, and principal payments postponement is available for up to 12 months.

Businesses operating in entertainment, recreation, accommodation, or food service industries can qualify for a loan between $100,000 and $500,000. Such financial support can help handle staffing shortages and fluctuating demand.

Supply chain support financing

To maintain your cash flow and meet financial obligations, you can apply for a supply chain support loan between $100,000 and $500,000. Principal payment postponement is available for up to 12 months. You can repay your loan over 60 months or earlier, which is penalty-free.

Equipment purchase financing

BDC offers equipment purchase financing to help businesses modernize operations or replace outdated machinery. You can get up to 125% financing to cover equipment purchase costs and other related expenses. The loan term is 12 years, and you can postpone principal payments for up to 24 months.

Purchase order financing

With up to 90% purchase order financing, you can cover a significant portion of the PO amount. The loan term is up to 18 months.

Technology purchase financing

For companies planning to invest in hardware, software, digital marketing, and IT advisory services, BDC offers up to 100% technology purchase financing. You can repay such a loan over four years and take advantage of up to 6 months of postponement of principal payments.

Financing for tech companies

For tech companies, BDC offers non-dilutive financing solutions that are flexible in terms of a payment schedule. The solutions by BDC aim to support tech businesses at all stages, including those with a recurring revenue model.

Methods of loan funding

After getting approval on your business loan, you should receive the funds in your bank account.

Reviews

FAQ

What is BDC?

Business Development Bank of Canada, or BDC, provides financing solutions and advisory services to Canadian entrepreneurs. The bank offers a variety of financing options tailored to the specific business needs of small and medium-sized companies — small business loans, commercial real estate financing, business purchase or transfer financing, and more. BDC works with businesses in all industries and at all stages of growth.

Who owns BDC?

Business Development Bank of Canada is a crown corporation owned by the federal government.

How do you qualify for BDC?

The eligibility criteria for BDC loans depend on the financing you apply for. Here are the standard eligibility requirements for most types of funding provided by BDC:

  • Having a Canadian-based business

  • Being of mature age in the province where you live

  • Having a good credit history

  • Meeting the requirement for the minimum time in business

How much can you borrow from BDC?

Depending on the type of financing you are looking for, you can apply for loans in the following amounts:

  • Small business loan — up to $100,000

  • Startup financing — up to $250,000

  • Commercial real estate financing — up to 100% financing

  • Working capital financing — between $100,000 and $500,000 for businesses in entertainment, recreation, accommodation, or food service industries

  • Supply chain support financing — between $100,000 and $500,000

  • Equipment purchase financing — up to 125% financing

  • Technology purchase financing — up to 100% financing

For other types of financing, BDC doesn’t specify loan amounts you can count on.

To calculate the amount you can borrow from BDC for a business loan, the company also offers to use a business loan calculator on their website. This tool will give you an idea of your monthly payments, the interest cost for financing your project, and an amortization schedule.

Is BDC a legitimate company?

Established in 1944 by an Act of Parliament, the Business Development Bank of Canada works with 72,000 Canadian entrepreneurs today. BDC has committed $41.2B to small and medium-sized businesses.

BDC is a crown corporation that reports to Parliament through the Minister of Industry. BDC’s sole shareholder is the Government of Canada. BDO is also a Certified B Corporation.

Company documents

Terms of use
Transparency

We support small and medium-sized businesses in all industries and at every stage of growth with money and advice. We are the Business Development Bank of Canada. We are BDC.

© Business Development Bank of Canada.

Financial products

BDC
Business loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$10,000-$500,000
Rate
i

Effective interest rate on the product

up to 5%
Term
i

Loan term for the financial product

up to 60 months

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Calculate loan payments in BDC

BDC calculator will allow you to calculate an approximate payment schedule for the loan

Loan amount
i

Enter the desired loan amount

CAD
CAD
10000 $
500000 $
Loan term
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Specify the loan term for the calculation

months
days
6
60

What to pay attention to when applying for a loan from BDC

  1. The company must have a license if it runs business in Alberta, British Columbia, Manitoba, Ontario and Quebec.
  2. You can check the availability of the relevant license (copy) at the branch of the lending company.
  3. Membership in a self-regulatory organization (SRO) is an additional guarantee of the reliability of the lending company. This information can also be checked at the company's branch or on its official website.
  4. Availability of lending policies.
  5. The procedure for applying for a loan.
  6. The procedure for concluding the loan agreement and receiving the payment schedule.
  7. Other conditions for granting loans.

We recommend

  1. To check out the interest rates and frequency. 
  2. Check the availability of individual terms in the loan agreement (principal amount, term, date of advance, etc.).
  3. Check whether the loan agreement contains information about the total cost of borrowing.
  4. Take time to think – you can change your mind before agreeing or signing a loan agreement.
  5. Speed of loan processing.
  6. Accessibility – alternative lenders often operate where there are no bank branches.
  7. For the borrower - high interest on the loan.
  8. For an investor, the safety of funds is not guaranteed by the state.

What distinguishes BDC from banks:

  1. Simplicity - loan processing is less formalized than in a bank.
  2. Fast loan processing.
  3. Accessibility.
  4. For the borrower - high interest on the loan.
  5. For an investor, the safety of funds is not guaranteed by the state.
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