Business Purchase or Transfer Loan Pave the way to a smooth transition

No. BDC doesn’t offer prequalification. We can review your financing request once you’ve identified a business and negotiated the main terms of the purchase.

Be prepared to provide details about the business and the proposed transaction, including:

• the agreed purchase price and how it was determined
• the transaction structure, such as an asset or share purchase
• a letter of intent and expected closing date
• your required down payment
• your Notices of Assessment from the past two years
• the business’s financial statements or income tax returns

The business must be in located Canada and generating revenue.

The timeline depends on the transaction and the information available for review. A business acquisition requires a detailed analysis, so begin the financing process as early as possible to avoid delays and issues with the sale.

The required down payment depends on the transaction, the business’s financial health and your situation. A financing structure may combine your own investment, a business loan and seller financing. BDC will assess the complete structure when reviewing your request.

BDC doesn’t maintain a list of businesses for sale. Our experts can help you navigate the business transition process and our resources can help you understand how to search for an acquisition opportunity and prepare for the process. For example, our experts can help women who want to buy a business through the Thrive Platform for Women.

Before applying for financing, you and the seller must agree on a purchase price. BDC’s business valuation guide can help you understand common valuation approaches.

Read our business valuation guide

Yes. BDC Advisory Services can support merger and acquisition planning, including integration planning, change management and the future operating model.

If you’re selling or transferring a business, specialists can also support key steps such as selecting an exit strategy and developing a succession plan.

See our consultation offer

Depending on the size and structure of the transaction, financing may include a business purchase loan, cash flow financing or mezzanine financing. Growth and Transition Capital offer customized financing for certain business acquisition projects.

A business purchase loan is intended to finance the acquisition of an existing business with revenue and an established client base. If you’re creating a new business or starting a franchise, explore our start-up financing instead.