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Subordinate Financing – Is this for you?
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Did you know…

In the event of a default, BDC's subordinate financing solutions never include a conversion clause in common shares.

Some of the eligibility criteria
  • Strong management team
  • Profitable business
  • Excellent financial controls
  • Competitive advantage

Looking to finance your growth? Do you want capital without diluting your company's equity? Is your business growing fast but can't provide the security required by traditional lenders? Subordinate financing is a strategic alternative…

Financing from $250 000 to $10 million

  • Acquisitions (competitors, suppliers or clients)
  • Shareholder buyouts:
    • Intergeneration transfer
    • Buyout by existing management
    • Buyout by new team
  • Working capital for growth
    • New markets
    • New products - R&D/Innovation
  • Financing of intangible assets – goodwill

Why BDC?

BDC can help you determine if subordinate financing is the right solution for you.

BDC shares the risk with the company and its other financial partners:

  • Security subordinated to secured lenders
  • Variable yield, partially based on the company's success

Less costly than equity financing

  • Lower after-tax cost
  • Interest is tax deductible

In vast majority of instances:

  • No shareholder agreement
  • No management rights
  • No board of directors representative

Not a formula-driven solution:
Customized to your specific needs such as sales seasonality, working capital requirements and repayment structure.

Limits the dilution of the company's capital.

A strong team dedicated solely to SME subordinate financing.



 
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