Why choose BDC?
- BDC shares the risk with your company
- Less costly than equity financing
- In most cases, no shareholder agreement & no management rights
- Pre-defined exit strategy<
- Customized to your specific needs
- Limits the dilution of your company's capital
- A strong dedicated team
Financing between $250,000 and $10,000,000.
Open to partnering with other financial institutions.
Term
4 to 7 years
Payments
Balloon and/or cash flow sweeps and/or regular monthly payments tailored to the client's needs.
Security
Subordinated rank (after secured lenders)
Pricing
BDC may obtain a return on its investment through a combination of:
- Fixed interest rate
- Variable return:
- Royalty on sales or profits or EBITDA (Earnings before interest, taxes, depreciation and amortization)
- Bonus interest: may be fixed or tied to performance and/or the value of the business
- Warrants: option to purchase an ownership position in the business
- Other scenarios can be considered
Fees
- Commitment fee payable upon acceptance of letter of intent
- Monthly administration charges
Syndication
BDC will encourage, whenever possible, the syndication of its Subordinate financing investments. BDC is prepared to act as lead investor as well as a participant in a subordinate financing transaction.
Process timing
- Term sheet (discussion paper only) within 2 working days
- Letter of intent within 2 to 4 working days after preliminary discussions
- Due diligence 10-20 working days after letter of intent is accepted
- Authorization: 3-5 days after due diligence completion
- Letter of offer: 3-4 days from authorization
- Total processing time: 20-30 working days