When Shelley Wallace, the owner of Burnaby, British Columbia’s Hagensborg Chocolates took maternity leave, she left the day‑to‑day business to adjust to motherhood. But the company, which produces all‑natural European gourmet chocolates, faltered during her absence. Sales dropped and the business suffered a setback.
Wallace had a plan for turning the company around, but needed an injection of working capital to make it happen. BDC took into consideration the good relationship it had shared with Hagensborg since 2010. Although it couldn’t provide financing due to the company’s limited cash flow and equity, BDC was able to provide principal postponement on Wallace’s two loans and to offer an extension and better rate on one of them.
BDC worked closely with Wallace and her accountant for six months, and as Hagensborg’s profitability increased, provided an Xpansion loan with flexible terms. “Thanks to the Xpansion Loan’s flexible terms, we were able to take advantage of its re‑advance program which really helps with the cyclical needs of my business,” says Wallace.
With BDC’s support, the company was able to make a real turnaround. Within two years of recording a net loss, Hagensborg Chocolates was in a position to forecast a triple digit net profit.
Wallace appreciated the principal postponement and extension on her loans, plus the flexible terms of the Xpansion Loan. “BDC really stood out in terms of understanding life events and seeing us through this journey,” she says.