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Business Development Bank of Canada

Business Development Bank of Canada (BDC)

 

The BDC is a popular finance option for businesses and entrepreneurs. Below are notes from my meeting with them on what they can offer:

 

  • They can tailor payments to cash flow for seasonal businesses
  • They have a non-demand fixed term
  • They do not do residential loans or lines of credit
  • They do finance commercial real estate, change of ownership, start ups, growth projects, business transactions and working capital
  • They offer terms up to 25 years
  • They offer progressive or seasonal repayment schedules
  • There is a possibility of deferring principal payments up to 36 months
  • Personal assets are not taken as collateral
  • In most cases they do not require an appraisal if the loan value is under $5M
  • 0.5% fee up front
  • They are a little higher than traditional commercial bank rates
  • They do not give grants
  • They will finance leasehold land depending on the length of the lease - the lease must be at least 5 years longer than the amortization period
  • A Phase 1 Environmental Report is required on all real estate deals
  • Loans under $250,000 are very quick and easy
  • They look at your Equifax Beacon Score
  • Cap rate of 5% to 7%
  • They can do loan values of up to 80%-90% depending on the strength of the borrower

 

 

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Alexandra Axsen

Lake Okanagan Realty Ltd.

Managing Broker

Tel: (250) 870-2792

Email: Alex@LakeOkanaganRealty.com

www.LakeOkanaganRealty.com

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