BDC Purchase Order Financing – Grant Brief ### 📋 Eligible Entities - Small and medium-sized enterprises (SMEs) operating in Canada - Incorporated businesses and corporations - Sole proprietorships and partnerships - Businesses with established sales orders or purchase orders from customers - Companies with a minimum operating history (typically 2+ years) - Businesses with demonstrated ability to fulfill customer orders - Manufacturing, distribution, wholesale, and service businesses that operate on a purchase order basis ### 💰 Funding Details - Loan Amount: Typically $10,000 to $1 million+ (based on order value and business capacity) - Repayment Structure: Repayable loan (not a grant); repayment is tied to customer payment collection - Matching Ratio: No matching contribution required from applicant - Interest Rate: Competitive BDC rates (variable based on risk profile and current market conditions) - Loan Term: Typically 6 to 24 months, aligned with order fulfillment and customer payment cycles - Security: May require security/collateral depending on loan amount and company profile ### 🛠️ Approved Expenses - Payment to suppliers for inventory, raw materials, and component procurement - Advance payments required to fulfill customer purchase orders - Working capital to support order fulfillment - Production costs and manufacturing expenses - Logistics and distribution costs related to delivering orders - Quality assurance and testing aligned with customer specifications ### ⚠️ Conditions & Milestones - Customer Orders Required: Must have confirmed purchase orders or sales contracts from customers - Revenue Documentation: Proof of existing business revenue and track record - Order Timeline: Must demonstrate ability to fulfill orders within the loan term - Customer Payment Terms: Repayment schedule aligns with expected customer payment dates - Loan Drawdown: Funds typically disbursed upon order confirmation and supplier invoices - Reporting: Regular updates on order status and payment collection progress - Credit Approval: Subject to BDC credit assessment and approval process - Business Plan: May require submission of business and fulfillment plans