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BDC: a unique client service experience

BDC :
a unique client service experience
BDC: a unique client service experience
Accelerate entrepreneurs success
Our mission
Help create and develop Canadian businesses through financing,
venture capital and consulting services, with a focus on small and
medium-sized enterprises (SMEs)
An unwavering commitment to the
success of Canadian entrepreneurs
BDC: a unique client service experience
We share the entrepreneurial spirit
that drives Canadian businesses
> Our dedicated and experienced employees are helping more than
28,000 clients reach their full potential
> Over 100 branches across Canada to provide our clients with
solutions that meet local economic realities
> Close to $10 billion of assets under management
BDC: a unique client service experience
Our mandate
> Be a complementary lender in the market to other traditional
financing institutions
> Fill the market gaps and maximize financing alternatives
> Operate on a commercial basis, i.e. to be financially sustainable
BDC does not provide:
> Bank accounts, lines of credit, term deposits, investment certificates,
RRSPs or insurance
> Interest-free grants or loans
> Residential or non-commercial loans, vehicle or equipment leasing
BDC: a unique client service experience
For a unique client service experience
Why choose BDC?
BDC: a unique client service experience
Our approach goes beyond money
> We look at your business as a whole, including management expertise,
potential for growth and the viability of your project
> We want to optimize your financial resources by offering repayment
terms tailored to your business cycle and needs
> You can get professional advice from our consulting services
BDC: a unique client service experience
We are there, come rain or shine
Our loans are non-demand, BDC is there over the long term
This will give you the peace of mind you need to thrive
BDC: a unique client service experience
Financing : Unparalleled flexibility
BDC: a unique client service experience
Optimize your financial resources
Repayment terms are tailored to your
business cycle and needs
> Longer amortization periods
> Seasonal or progressive repayment schedules
to protect your cash flow
> Initial principal payments at loan authorization
may be deferred to get your project going
BDC: a unique client service experience
Our areas of expertise
Financing solutions
> Working capital financing
> Equipment financing
> Real estate financing (land and building)
> Business transition financing
BDC does not provide service to:
> Bars, nightclubs, gambling operations, activities of a sexual nature,
private clubs
> Companies that are in breach of environmental regulations and
do not want to comply
> Non-Canadian businesses
BDC: a unique client service experience
Working capital financing
BDC: a unique client service experience
Support growth projects and innovation
Working capital financing
> Increase inventory to support growing sales and receivables
> Additional working capital to support growth
> Expand domestic markets or explore new and larger foreign markets
(Market Xpansion Loan)
> Develop products and R&D
Financing criteria
> An existing line of credit
> An experienced management team
> Repayment capacity based on cash flow
BDC: a unique client service experience
Working capital financing
Financing example
BDC financing to complement clients line of credit
Benefits:
> Long-term loan, security is subordinated to the chartered bank
> Support current operations and reduce pressure on accounts receivable
Project Amount Financing Amount
Purchase of inventory $150,000 BDC financing:
Working capital
$75,000
Clients bank: Line of credit $75,000
Total $150,000 Total $150,000
BDC: a unique client service experience
Market Xpansion Loan
Up to $50,000 and maximum flexibility
> Participate in trade shows and conduct business development overseas
> Develop local or international contacts and distribution networks
> Develop export plans
> Develop e-commerce
> Produce or implement a marketing plan
> Purchase additional inventory to expand and export to new markets
BDC: a unique client service experience
Market Xpansion Loan
Unique repayment features
> Amortization period of up to 8 years
> Seasonal or semi-annual payments
> Possibility of deferring principal
payments for the first 12 months
of the loan
> Maximum study fees of $250
BDC can re-advance any repaid portion
of the loan starting at a minimum of $10,000*
*Conditions apply
BDC: a unique client service experience
Equipment financing
BDC: a unique client service experience
Expand your capacity and
gain a competitive edge
Equipment financing
> Purchase equipment (new or used) or retool
> Purchase a production line or automate a current one
> Replenish working capital depleted by equipment-related purchases
Up to 125% financing
> Long-term financing up to $5,000,000
> 100% of the cost of the equipment and the possibility of an additional 25%
for related expenses such as transportation, installation or training
> Amortization period of up to 12 years
> Possibility of deferring principal payments up to 24 months
BDC: a unique client service experience
Equipment financing
Financing example
Equipment loan which allows up to 125% of financing in addition to a working
capital loan to take care of exporting costs
Benefits:
> Higher percentage of financing for the equipment (125%)
> Long-term financing of intangible costs
Project Amount Financing Amount
Equipment purchase $900,000 BDC Term loan $1,125,000
Plant expansion $189,000 BDC financing:
Working capital
$164,000
Market development $200,000
Total $1,289,000 Total $1,289,000
BDC: a unique client service experience
Commercial real estate financing
BDC: a unique client service experience
Expand and modernize
Commercial real estate financing
> Purchase of land and building
> Construction of new premises
> Expansion or improvement of existing premises
> Replenish working capital depleted by current construction costs
Up to 100% financing
> Guaranteed long-term financing up to 30 years
> Progressive or seasonal repayment schedules tailored to your business
cash flow
> Possibility of deferring principal payments up to 36 months
> Personal assets are not taken as collateral
BDC: a unique client service experience
Commercial real estate financing
Financing example
Term loan to finance purchase and renovation in addition to a working capital
loan to relocate activities in a more active commercial area
Benefits:
> Increased employee efficiency thanks to more ergonomic facilities
> Increase of 25% in sales over the next 2 years
> More than $80,000 increase in profitability
Project Amount Financing Amount
Purchase of land & building $800,000 BDC Financing Commercial
real estate
$800,000
Renovations $240,000 BDC Financing -
Working Capital
$210,000
Misc. expenses $20,000 Clients working capital $50,000
Total $1,060,000 Total $1,060,000
BDC: a unique client service experience
Business transition :
financing and consulting
BDC: a unique client service experience
BDC Transition Program
Financing options
Transfer or sell your business to family members, employees
or outside buyers
> Long-term loan based on the value of your fixed assets such as land,
building, equipment or shares in an existing business
> Unsecured term loan for intangible assets such as intellectual property,
goodwill, client list, etc.
> Subordinate financing (based on risk and benefit sharing) for more complex
or structured solutions
> Refinance vendor financing (vendor take-back) resulting from a previous
change of ownership
BDC: a unique client service experience
Business transition financing
Financing example
Financing needed for the acquisition of 100% of shares by 2 individuals
external to the company
Benefits:
> Allowed current owner to ensure the continuity of the company and
retire as planned
Project Amount Financing Amount
Acquisition of 100% of shares $1,950,000 BDC financing $350,000
Secured Term Loan (other Bank) $750,000
Vendor take-back $275,000
Investment $575,000
Total $1,950,000 Total $1,950,000
BDC: a unique client service experience
Ensure the continuity of your business
Consulting services
Maximize the value of your clients
business and reconcile the interests
of all stakeholders in order to ensure
business continuity
> Transition planning
> Exit strategies
> Presale value creation
> Implementation coaching
BDC: a unique client service experience
Consulting : knowledge,
experience and results
BDC: a unique client service experience
Increase your competitiveness and profitability
Operational efficiency
> Review and process optimization
to reduce waste and increase
productivity
> ISO 14000 : Environmental
management
> ISO 9000 : Quality management
> HACCP/ISO 22000: Food safety
management
BDC: a unique client service experience
Take advantage of unfolding opportunities
Market development
> Portfolio of globalization solutions
Assess global readiness
Identify potential markets and conduct market research
Get hands-on help to implement an international
business plan (market expansion, sourcing strategy,
direct foreign investment)
Access a global network through BDCs global partners
> Marketing and sales strategies
> Sales and distribution management
> E-commerce strategy
BDC: a unique client service experience
Stay on track with your objectives
Business planning
and management
> Business potential assessment
> Strategic planning
> Financial management
> Business coaching
> Business plan development
BDC: a unique client service experience
Contribute to your businesses growth and future
Human resources management
> HR development plan
> Policies and procedures
> Workplace health and safety
BDC: a unique client service experience
Increase your value in the marketplace
Innovation
> Innovation planning and
management
> Project funding strategy
> R&D tax credit claims Scientific
Research and Experimental
Development tax incentive
program (SR&ED)
BDC: a unique client service experience
Subordinate financing
BDC: a unique client service experience
A strategic alternative for growing companies
Investment of $250,000 to $10 million
> For high-growth firms with minimal securities
> Businesses that have successfully progressed beyond the start-up phase
> Does not dilute ownership
> Can be structured to maximize return on investment
Eligible projects:
Business acquisition
Management buyouts or business transfers
Expansion; commercialization program
Working capital for growth
BDC: a unique client service experience
Venture capital : expertise and
know-how
BDC: a unique client service experience
Knowledgeable capital
BDC Venture Capital invests in early-stage technology-based
Canadian companies that offer unique products or services, addressing
promising global markets
Our focus is on businesses in the areas of:
Life sciences
Communications and information technology
Energy, environment, electronic and materials (EEEM)
Industrial technology
BDC: a unique client service experience
Thank you
BDC: a unique client service experience
1-800-info-BDC www.bdc.ca
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