Business Development Bank
Quick Definition
The Business Development Bank of Canada (BDC) is a financial institution wholly owned by the Government of Canada. As Canada's development bank, BDC plays a leadership role in delivering financial, investment, and advisory services to Canadian small and medium-sized enterprises, particularly those in technology and innovation sectors.
Business Development Bank of Canada (BDC) is a Crown corporation providing financing, advisory services, and capital to Canadian entrepreneurs.
💡 Quick Example
A fintech startup secures a $500,000 BDC term loan at competitive rates with a 7-year amortization to fund product development and market expansion. They also access BDC's advisory services for strategic planning and receive introductions to potential enterprise customers through BDC's network.
What is the Business Development Bank of Canada?
The Business Development Bank of Canada (BDC) is Canada's only bank dedicated exclusively to entrepreneurs. With over $47 billion in assets and a network across the country, BDC fills gaps in the market for business financing, particularly for small and medium-sized enterprises that may not qualify for traditional bank financing.
BDC's Services for Startups
Term Financing
Medium to long-term loans for growth initiatives, equipment purchases, working capital, and expansion projects.
Operating Credit
Lines of credit for managing cash flow fluctuations and seasonal business cycles.
Equipment Financing
Competitive financing for machinery, technology, and equipment purchases essential for business operations.
BDC Capital
Venture capital arm providing equity investments from seed stage through growth capital for high-potential technology companies.
Advisory Services
Consulting and coaching services to help entrepreneurs overcome business challenges and accelerate growth.
Unique Value Proposition
Risk Tolerance
BDC accepts higher risk profiles than traditional banks, working with companies that have limited operating history or unconventional business models.
Patient Capital
Longer repayment terms and more flexible structures accommodate the realities of startup cash flow patterns.
Development Focus
Mandate extends beyond profit to supporting Canadian economic development and job creation.
Sector Expertise
Specialized knowledge in key industries including technology, cleantech, healthcare, and advanced manufacturing.
For Canadian entrepreneurs, BDC represents a crucial funding source that combines flexible financing with strategic business support, particularly valuable for companies in growth phases or non-traditional sectors.
Frequently Asked Questions
Related Terms
SR&ED Tax Credit
Scientific Research and Experimental Development tax incentive program providing cash refunds and tax credits for R&D activities in Canada.
IRAP Funding
Industrial Research Assistance Program providing funding and advisory services for Canadian small and medium-sized enterprises developing innovative technologies.
Venture Capital (VC)
Professional investment firms that provide funding to startups and early-stage companies in exchange for equity.
Cash Flow Planning
The process of forecasting, monitoring, and managing the timing of cash inflows and outflows to ensure adequate liquidity for business operations and growth.