BDC Equipment Loan
Compared with the 242 other application forms we have read
- The heaviest thing to produce is forward financial projections. 7 ask for that.
- Scored mainly on whether you can afford it and pay it back. 42 lead with that.
- States real length limits, about 167 words in total. Only 64 tell you how long to write.
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Eligibility & Details
What this program funds and who can apply
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
- BDC excludes some industries entirely, including charitable/religious/fraternal organizations, unions and advocacy organizations, government-owned entities, private schools, nursing/rehabilitation/personal care, market speculation, residential property, cannabis, virtual currency and NFTs, financial services, bars and lounges, and gambling. The exclusion is attested in the application.
- A cash down payment may be required in some cases, depending on the financing structure and the business's risk profile; BDC assesses it during the application.
Quick Assessment
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
Accessible — straightforward requirements
Low competition — good odds of approval
Easy — minimal documentation
How to qualify
Insider tips, common pitfalls, and what successful applicants look like
Insider TipBDC'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.
Success Profile
Evaluation Criteria
How BDC Equipment Loan judges your application
What the reviewer scores, what gets applications rejected, and what to write.
Distilled from 6+ source documents on bdc.ca, condensed into one brief. Sources as of 2026-09-04.
6 of the sources
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What BDC Equipment Loan favours
Show projected sales increase and how financing helps◦
“Bankers need numbers. Prepare details about the projected sales increase, plans for using the financing and exactly how it will help your business.”
The form
Eligibility and project
- 1Financing request - eligibility checkcheckboxno limit
- 2How much do you want to borrow?short answerno limit
- 3How long has the business been in operation?selectionno limit
- 4What type of loan are you looking for?selectionno limit
- 5About your projectwritten answer · 1,000 characters
About your project; Tell us about your project and how the loan will be used.
Business eligibility attestations
- 6Business eligibility - attestation set served on a smaller requestcheckboxesno limit
- 7Business eligibility - attestation set served on a larger requestcheckboxesno limit
Identity and account
- 8Last step before seeing if your project is eligibleshort answerno limit
Documents for the review
- 9Equipment quoteshort answerno limit
- 10Company detailswritten answerno limit
Company details: Information about your company's history, current operations, strategy and management team experience.
- 11How you'll use the loanwritten answerno limit
- 12Financial statementsspreadsheetno limit
- 13Financial projectionsspreadsheetno limit
Client Space
- 14Client Space - business and personal informationlistno limit
- 15Documents BDC may request after submissionlistno limit
bar = length the funder allows, from its stated limits
Judged against
- 1
Can the business carry and repay the loan?
Show them Show a healthy debt-to-equity ratio, sufficient working capital, and a monthly cash-flow forecast that already carries the new loan payments.◦
In the funder’s words · 1
- There is no competitive adjudication, no rubric and no scoring. BDC is a lender: this is a credit decision on the business, its owners and the asset. The only published inputs are S1's four Minimum requirements, S4's cash-flow-capacity and credit-check statements, and S5's debt-to-equity and useful-life reasoning. Nothing in any source ranks applicants against each other.
- 2
Is the business eligible at all?
What to show them in Premium
- 3
Will the equipment earn its keep?
What to show them in Premium
7 questions the reviewer answers about you, in Premium.
Where applicants fail
“Don't forget about additional costs; Buying equipment comes with additional costs, such as transportation, installation, maintenance, training, downtime and losses due to malfunction.”
“Another common mistake is overlooking how to properly assess your equipment needs over time.”
Premium · the rest of this brief
See all 10 rules that can reject you and every criterion you are judged on. Then we draft your application for you.
8 more rules that can reject you · 10 more prompts · 2 more pitfalls
Do you pass?
Each one can rule you out. Tick the ones you meet.
Your business
Based in Canada
Location; Based in Canada
12+ months of revenue
Time generating revenue; 12 months +
Documents to attach
Ticks are kept on this device.
The money
Financing shareUp to 125% of purchase price
Finance up to 125% of the purchase price of your equipment to help cover extra expenses like shipping, installation and training.
Interest-only periodInterest-only for up to 24 months
Take a break on us and pay only interest for up to the first 24 months of your loan.
Repayment termUp to 12 years to repay
Keep cash in your business and take up to 12 years to repay your loan.
Equipment line12–24 month purchases, then 6-year repayment
Yes. If you qualify, you can access an equipment line to purchase the equipment you need over a 12- to 24-month period (depending on the sector in which your business operates). The rates and terms are guaranteed. Once your purchases are complete, you'll have a 6-year repayment period.
Future purchase creditExtra credit up to 2 years
Benefit from additional credit availability for up to 2 years to help you finance future purchases.
Interest rate basisFloating base rate plus variance
Current floating base rate + variance based on your personal and business information = interest rate.
Your shareDown payment may be required, assessed at application
A down payment may be required in some cases, depending on the overall financing structure and business's risk profile. The exact requirement is assessed during the application process and can vary based on the business and the equipment being financed.
StackingMix different financing types for large equipment
For expensive, large equipment acquisitions, a mix of different types of financing can be used.
Costs before approvalQuote typically needed; can cover previously purchased equipment
When asking for the loan, you will typically be requested to provide a quote for the equipment that you want to buy, though loans can also cover previously purchased equipment.
What it pays for · 7
- Production line machinery
- Automated equipment
- Robotics systems
- Hardware
- Specialized equipment (ex: lab material)
- Commercial vehicles
- Renewable energy and waste management equipment
From application to money
- Advisor callAdvisor call to discuss project
- Submit online requestOngoingOne online request, 1,000-character cap
- Loan offerLoan offer if approved
- Accept and signAccept offer and sign documents
In the funder’s words · 4
- Advisor call
- A BDC representative calls to discuss the project in depth and set the documents needed for the analysis.
- Submit online request
- One online request; the project description is capped at 1,000 characters.
- Loan offer
- If you're approved, we'll send you a loan offer based on your financial needs and capabilities.
- Accept and sign
- Accept the loan offer and sign the related documents, if the business qualifies for a loan.
Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.
Everything you need to secure BDC Equipment Loan
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 11-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 6-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 3-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what lenders look for
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 11
Eligible Expenses 6
Ineligible Expenses 4
Deadline Notes
Ineligible Organizations
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskHow BDC Equipment Loan Compares
Side-by-side with similar programs
| 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 |
Related Programs
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Frequently Asked Questions
Quick answers to the questions founders most often ask about BDC Equipment Loan