Growth & Transition Capital

Our Growth & Transition Capital team offers mezzanine, cash flow and quasi-equity 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.

• 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.
• Mezzanine financing customized to your needs: 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.
• Quasi-equity financing to share the risk with us: 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.

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