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Business Development Bank Of Canada
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Business Development Bank Of Canada
Submitted by:
Parth Sharma
Garima Mehra
Amrinder
BUsiness Development Bank Of Canada
The BDC was founded in 1944 to help various Canadian entrepreneurs and small and medium-sized businesses. The bank does this by providing financing, capital and advisory services.
What is BDC?
The Business Development Bank of Canada is solely owned by the Government of Canada and it has provided $36.5 billion to around 62000 entrepreneurs.
The bank says its clients employ one million Canadians and generate $350 billion in annual revenue.
What has bdc provided?
The bank aims to fill the gap in the lending market by focusing on the needs of those who are often overlooked by traditional financial institutions.
It is a certified B Corporation, meaning it balances profits with achieving an environmental and social mission.
AIM
BDC provides fully- customized value added service offerings:
- Productivity, Human Resource Management, Quality, Growth, export and E-Business.
Consulting
Fiscal 2003 Achievements
Fiscal 2003 Achievements
- Repeat business reached 46%
- Completed 3,625 projects.
- Total revenues of $18.2 million.
Innovation Financing
- To support Canadian Business that have opportunity for growth or process improvement but lack funds including MBO situations
- A working capital loan with lower security requirements than term loans
- Eligibility all BDC eligible clients
- Loans up to $250K
- Security against fixed assets not always required
- Pricing ranges from 3.5 over our base rate and up based on company strength
Co-Vision
Co-Vision
- To promote the creation of new viable businesses
- New businesses
- A business being established for the first time
- An established business that has not registered 12 consecutive months of sales
- Business Plan
- Repayment over 6 years (includes 1 yr deferred payment)
- >$50,000 - secured by fixed assets
- <$50.000 - personal guarantee
HOW to get financing When starting your business
How to get financing?
Investment Groups
Over here, we will be highlighting two major investment groups by the BDC.
Investment Groups
Venture Capital
- One of largest VC groups in Canada
- Established in 1975
- Over $400M in Assets
- Invests in all stages of company lifecycles seed through expansion
- Focuses on:
- Technology-based business
- High growth potential
- Positioned to be a dominant player in their market
Subordinate financing
Subordinate Financing
- Mezzanine, Quasi-Equity, sub-debt, junior debt, etc. many different names but same common principal..
- Hybrid of debt and equity…depending on how it's structured.
- Subordinate refers to the fact that we are behind senior lenders.
Sub-Debt
Sub-Debt
- Provide clients with a flexible financing tool that has equity type properties without ownership dilution.
- Appropriate financing of growth opportunities can lead to greater profitability and viability.
- Looked on favorably by financial partners - often viewed as equity for covenant calculations.
- Competitive advantage in the market place. Look at deal sizes ranging from $250k - $5.0M first round.
- Partner with all other players
- Not only high-tech focused
applications
Applications
- Sub-debt can be used in three different applications.
1. Growth Capital
2. Management buyouts/buy-ins
3. Mergers and acquisitions