Updated July 2026 · Verified against Business Development Bank of Canada (BDC) guidelines
✓ First-Timer Friendly Advance Payment Est. 1944
Loan Federal Active

BDC Equipment Loan

Business Development Bank of Canada (BDC)
Loan Range
Varies; finances up to 125% of equipment purchase price (no...
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Advance Payment
Trend
Stable
First-Timers
Friendly ✓
Financing share
125%
BDC Equipment Loan offers funding that varies by project. Financing to purchase or refinance machinery, vehicles, and other business equipment, covering up to 125% of the purchase price to also fund related costs like installation. Applications are accepted on an ongoing basis.
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Eligibility & Details

What this program funds and who can apply

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Program Description

Financing to purchase or refinance machinery, vehicles, and other business equipment, covering up to 125% of the purchase price to also fund related costs like installation. Offers up to 12 years to repay, including up to 24 months of interest-only payments to ease cash flow while the equipment ramps up. Requires at least 12 months of revenue-generating operations in Canada.

Eligibility Requirements

  • Business based and operating in Canada
  • Generating revenue for at least 12 consecutive months
  • Good personal and business credit history
  • Financing is for production machinery, automated equipment/robotics, commercial vehicles, or renewable energy/waste management equipment (new or used)
  • Loan structure and rate depend on business profile, equipment type, and requested term
Provinces
All Provinces
Industries
All
Business Stage
Established Growth Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
First-Timer
Friendly

Funding Details

Amount
Varies; finances up to 125% of equipment purchase price (no published dollar minimum/maximum)
Type
Loan
Level
Federal
Financing share
Up to 125% of eligible costs
Deadline
Ongoing

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Ongoing
Approval
Varies
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

Everything you need to secure BDC Equipment Loan

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

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How to qualify

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

BDC's Equipment Loan can finance up to 125% of the purchase price; the extra 25% is meant to cover related costs like installation, delivery, or software that often get missed in a straight equipment quote.

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Success Profile

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Evaluation Criteria

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Get an Equipment Quote Obtain a quote or invoice from your equipment vendor for the machinery, vehicle, or equipment you want to finance.

Required Documents 5

✓ Online loan request form at bdc.ca/en/financing/equipment-loan
✓ Equipment quote(s) or purchase invoice from the vendor

Eligible Expenses 6

Ineligible Expenses 4

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Canada Small Business Financing Program (CSBFP) SR&ED Tax Credits BDC Small Business Loan
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk
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How BDC Equipment Loan Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
BDC Equipment Loan Varies; finances up to 125% of... Easy Advance Payment Ongoing
Canada Small Business Financing Program Up to $1.15 million Easy Mixed (Advance + Reimb.) Ongoing
BDC Small Business Loan Up to $350,000 Easy Advance Payment Ongoing

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Frequently Asked Questions

Quick answers to the questions founders most often ask about BDC Equipment Loan

Free
How much can I borrow for equipment?
BDC doesn't publish a fixed minimum or maximum; the loan is sized to your equipment quote and business profile, financing up to 125% of the purchase price to also cover related costs like installation.
How long do I have to repay the loan?
Up to 12 years, with up to 24 months of interest-only payments at the start to ease cash flow while the equipment ramps up production or use.
Can I finance used equipment?
Yes; BDC finances both new and used equipment, including production machinery, commercial vehicles, and renewable energy or waste-management equipment.
Do I need 2+ years in business to qualify?
No; BDC's published requirement is at least 12 consecutive months of revenue-generating operations, not 24 months.
What if I need to buy equipment in stages?
BDC's 'Equipment line' option lets you draw funds over a 12-24 month purchasing window, with up to 2 years of additional credit availability before a 6-year repayment period begins.

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