BDC: Purchase Order Financing
BDC can lend up to 90% of a confirmed purchase order's value so you can pay suppliers and fill the order. Your business must be in Canada, have 12 months or more of revenue and a good credit history. This is a loan, not a grant. You can apply anytime.
Before you spend any money
You need BDC's approval and loan offer before the money is released. Apply as soon as you have the confirmed order.
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 a confirmed purchase order but not enough cash to buy inventory or pay suppliers.
- Your business is based in Canada, has been generating revenue for 12 months or more and has a good credit history.
- You sell physical goods and need money for production, inventory or supplier payments.
Probably not the right fit if
- Your business has less than 12 months of revenue.
- You have already delivered and are waiting for your customer to pay. BDC does not do invoice factoring.
- You want a grant. This is a loan that you must repay with interest.
How much you'd realistically get
Up to 90% of the order value, excluding taxes, deposits, and other payments received from the buyer.
What may be supported
- Paying suppliers directly for confirmed orders.
- Buying inventory to fulfill large or unexpected customer orders.
- Manufacturing goods to fulfill confirmed purchase orders.
- Covering production costs for physical goods.
What's excluded or restricted
- Taxes, deposits and other payments received from the buyer are not counted in the order value BDC finances.
- BDC does not do invoice factoring. This loan covers costs before delivery, not unpaid invoices after delivery.
How applying works
Effort: moderateYou send a loan request online. A BDC representative then calls you to discuss the order and the documents needed.
- 01Submit a loan request online on the BDC website with details of the order and your business.
- 02A BDC representative calls you to discuss the project and the documents needed.
- 03If approved, you receive a loan offer.
- 04BDC releases the money to you in Canadian or US dollars. You pay your suppliers and repay BDC.
Who to ask: BDC Business Solutions Centre: 1-877-232-2269; 'Message our team' form on bdc.ca
Documents commonly required
- The confirmed purchase order.
- Proof your business has generated revenue for 12 months or more.
- Supplier quotes or invoices for the order.
- Other documents the BDC representative asks for during the call.
What to know before you count on it
- This is a loan, not a grant. You repay it with interest.
- The interest rate and fees are not published. You learn them in BDC's offer.
- BDC sends the money to you. You pay your suppliers and repay BDC.
- You need a confirmed purchase order, 12 months or more of revenue and a good credit history.
What are your odds?
Approval depends on your credit history, your revenue and the purchase order. Approval is not certain.
Frequently asked questions
Is this money a grant or a loan?
It is a loan that you must repay with interest.
What percentage of the order value can I borrow?
Up to 90% of the order value, not counting taxes, deposits and other payments received from the buyer.
How long do I have to repay the loan?
Up to 18 months. You can choose interest-only payments and one balloon payment at the end, to match your customer's payment terms.
Can I use this for invoice factoring?
No. BDC does not do factoring. This loan covers supplier and production costs before you deliver the order.
More funding by what it pays for
What you can combine it with
BDC does not offer invoice factoring. If you need cash after delivery, ask your bank or another lender about that separately.
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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.