Growth & Transition Capital financing solutions
Our Growth & Transition Capital team offers financing solutions on flexible terms to both mid-market and high-revenue Canadian companies. These solutions allow your business to raise capital when you have insufficient tangible assets to pledge for security and don’t want to dilute ownership.
Our solutions can be right for your business if you:
- Run an established or high-growth firm
- Have a strong management team
- Demonstrate quality of financial reporting
Financing from $250,000 to $35M
Security is subordinated to secured lenders.
This means that your chartered bank and long-term lenders will have a right to be repaid before us; this makes it easier for you to borrow.
Limits dilution of ownership and offers an affordable alternative to equity financing.
In most cases, BDC will require no shareholder agreement, management rights and no board of directors representative; this ensures that your business stays in your hands.
Customized financing solutions
A mezzanine loan offers you repayment terms adapted to your cash inflows in order to protect your cash flow. It is a hybrid of debt and equity financing—similar to debt financing because you need cash flow to repay the loan but the terms of repayment are more flexible than conventional financing. It’s also associated with equity financing because BDC can participate in your company’s growth and seek a variable return on its investment.
This financing is designed for companies that have a consistent track record of positive and strong cash flow and want to plan large-scale projects with the cash they need in hand. This solution is focused on providing stable terms and conditions. For example, you can repay your loan over a period of 3 to 8 years and protect your cash flow. You can also postpone your capital payments for the first 12 months to keep cash in your business.
With this financing, BDC shares the risks with businesses that are in the commercialization phase and have not yet reached positive cash flow but forecast that they will generate strong cash flow in the near term. This solution allows you to raise capital and repay your loan at the end of the term in order to keep cash in your business for daily operations. You can repay your loan over a period of 2 to 8 years. Repayment at the end of the term is partially based on forecasted earnings and your company’s success.
This solution is designed specifically for sticky, high margin, subscription revenue companies such as SaaS (Software as a Service) businesses. BDC offers growing companies the opportunity to invest in sales and marketing to acquire more customers and generate further growth. Financing is based on a multiple of your monthly recurring revenue and can help you manage cash flow as you scale up your business. Our flexible repayment terms are tailor-made to your situation.
Unitranche financing is an attractive solution for acquisition or change of ownership transactions over $5 million. BDC offers unitranche loans to simplify and speed up the process by combining senior term debt and subordinated debt into a one-stop solution. The number of intercreditor agreements, legal aspects and your costs are reduced. Pricing is weighted according to senior/subordinated debt and a custom-made repayment structure provides flexibility for your business’s cash flow. We will also partner with other financial institutions to provide an operating line of credit or an Asset-Based Lending (ABL) facility along with the unitranche loan.