BDC Financing: Equipment Purchase Loan
BDC can finance up to 125% of the purchase price of new or used equipment. This is a repayable loan for Canadian businesses with at least 12 months of revenue history.
“Our Equipment Loan covers up to 125% of the purchase price of new or used equipment for extra flexibility and peace of mind.”
From the official program page
Before you spend any money
This is a loan; you must secure approval before purchasing equipment to ensure the financing covers the cost.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You have been in business for at least 12 months and are generating revenue.
- You need to buy new or used equipment, machinery, or commercial vehicles.
- You have a solid credit history and can manage a loan repayment plan.
Probably not the right fit if
- You are a new business with less than 12 months of operating history.
- You are not currently generating revenue.
- You are looking for a grant or non-repayable funding since this is a loan that must be repaid with interest.
How much you'd realistically get
Up to 125% of the equipment purchase price.
What may be supported
- Production line machinery
- Automated equipment
- Robotics systems
- Hardware
- Specialized equipment (e.g., lab material)
- Commercial vehicles
- Renewable energy and waste management equipment
How applying works
Effort: moderateYou submit a loan request online and then speak with a BDC representative about your needs.
- 01Submit a loan request online via the BDC website.
- 02Talk to a BDC representative to discuss your needs.
- 03BDC suggests loan terms based on your business.
- 04Provide required documentation to finalize the loan.
Who to ask: 1-877-232-2269; or contact form at https://www.bdc.ca/en/contact-us
Documents commonly required
- Proof of business registration and Canadian location.
- Financial statements showing current revenue generation.
- Credit history or report demonstrating a good track record.
- Quotes or invoices for the equipment you intend to purchase.
What to know before you count on it
- This is a loan, not a grant; you must repay the principal plus interest.
- BDC does not publish its interest rates. Ask BDC for the rate on your loan.
- You must have at least 12 months of business history and current revenue to qualify.
- Amortization can extend up to 12 years, meaning long-term debt obligations.
What are your odds?
Approval depends on your credit history, revenue status, and the specific equipment purchase; BDC is a federal Crown corporation with strict lending criteria.
Frequently asked questions
Can I use this loan for used equipment?
Yes, BDC finances up to 125% of the purchase price for both new and used equipment.
How long do I have to repay the loan?
Amortization can be up to 12 years, with an option to pay interest only for the first 24 months.
Is there a deadline to apply?
No, BDC loans can be applied for anytime, but you must meet the eligibility criteria at the time of application.
What is the interest rate?
BDC does not publish its interest rate. Ask BDC for the rate on your loan.
More funding by what it pays for
Funding for Manufacturing
Grants and loans that may help pay for automation and productivity tools.
Funding for Automation
Loans and grants to help you automate business workflows and tasks.
Funding for Energy Efficiency
Grants and loans may help pay for lighting, HVAC and refrigeration improvements.
Funding for Export and New Markets
Grants and loans that may help pay for trade shows, research and translation.
What you can combine it with
This loan can potentially be combined with other funding sources, but you must manage the total debt load carefully.
Related programs
BDC: Purchase Order Financing
Up to 90% of costs
A short-term BDC loan that helps Canadian businesses pay suppliers and production costs so they can fill a confirmed customer order when cash flow is…
Checked
Food and Beverage Industry Financing (FCC)
Farm Credit Canada offers loans to food and beverage businesses anywhere in Canada to build, expand, or equip their operations.
Checked
Canada Small Business Financing Program
Up to $1,150,000
This program makes it easier to get a business loan by having the government share the lending risk with your bank or credit union.
Checked
Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Page last updated ; status and deadline checked . Source: official program page.