BDC frequently receives the following questions. Some are requests for services we do not provide and therefore cannot be answered completely. Where possible, we provide links and phone numbers for more information.
1. What is the difference between BDC and other financial institutions?
We offer both financing and advisory services. Our subsidiary— BDC Capital—also offers a full spectrum of specialized financing, including venture capital, equity as well as growth and business transition capital. Our innovative term financing features fixed or floating rates and repayment schedules up to 25 years, tailored to your working capital needs. Project-based financing and a comprehensive approach to risk assessment allows us to help businesses whose financial needs exceed the parameters of traditional financing.
2. Do you offer grants or subsidies?
No. BDC is a commercial bank offering long-term business financing, paid back with interest. For information on grants or subsidies, visit the Canada Business Web site.
3. So you don't give money? Shouldn't a crown corporation be helping Canadians?
BDC has been supporting Canadian businesses since 1944. Our innovative financing and advisory services are specifically created to respond to the needs of today's Canadian businesses. We do not receive government funding for the money we offer in loans; rather, our funds are borrowed on the money market like other commercial banks.
4. Why should I borrow from BDC when I can get lower rates elsewhere?
Many elements make up your total financing package, not just the interest rate. For instance, we offer flexible repayment terms as well as increased levels of financing.
5. Can I open a chequing/savings account at your bank?
No. We are a long-term commercial lender and do not provide regular banking services or accept deposits.
6. Can you provide me with exchange rate information?
Since we do not exchange money, we do not offer exchange rates. Your local bank or foreign exchange office can help you. The Bank of Canada offers a useful currency converter.
7. Do you issue letters of credit?
8. Do you offer line of credit facilities?
No. We recommend you contact your financial institution for this service.
9. Can you help me incorporate my business?
While we provide financing and advisory services, we do not incorporate or register companies. An excellent source of information on the four types of businesses in Canada can be found at the Canada Business website.
10. Who governs the Business Development Bank of Canada?
The Bank was created by an Act of Parliament in 1944 and reports to the Minister of Industry.
11. Is this the Bank of Canada?
12. I have invented a product, and I need more financing for prototype production and patents. Can you help?
BDC Capital can sometimes assist entrepreneurs in knowledge-based industries with a high-growth potential.
13. Do you provide financing to start up a business?
To be eligible for BDC financial support when your business is at the start-up phase, you must demonstrate realistic market and sales potential, possess experience or expertise in your field, provide personal or credit references, demonstrate a reasonable investment of financial resources and provide a solid business plan. Get tips about starting a business.
BDC Capital also provides both financial and non-financial support to select start-ups.
14. Do you provide asset-based financing?
Not in the traditional sense. We do not lend money based solely upon the assets you have in your business. We base part of our credit decision on the project's viability, management strength, and the cash flow from the business operations.
15. Do you provide a loan based upon future projections for a newly invented technological product?
BDC Capital can handle financing for these types of ventures. BDC and other venture capitalists look for a seasoned management team, a solid business plan, a market opportunity to support fast and sustained growth, a distinct competitive advantage, and technology with broader applications than a single product or industry.
16. Are you the people I complain to about a product or service?
If you're dissatisfied with the service we have provided, we apologize and suggest you contact your local business centre or call 1-877-232-2269. If you are still not satisfied, our ombudsperson's office can provide independent conflict resolution. If your complaint involves another business, we suggest you contact them or the nearest Better Business Bureau.
17. Can I file a complaint with BDC regarding a financial institution?
If you have a complaint regarding a financial institution, please contact the Office of the Superintendent of Financial Institutions or call 1-800-385-8647. If you have a question about BDC, please click here.