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)
Maximum Funding
Varies; finances up to 125% of...
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Advance Payment
Trend
Stable
First-Timers
Friendly ✓
Co-Funding
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. (As of July 2026, verified against Business Development Bank of Canada (BDC) program guidelines)
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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
Industries
All
Business Stage
Established Growth Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
Est. Hours
4h
First-Timer
Friendly

Funding Details

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

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
Low
Effort
~4 hours
Approval
Varies
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

Everything you need to win BDC Equipment Loan

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How to Win

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. There's also an 'Equipment line' variant for businesses that need to make multiple equipment purchases over a 12-24 month window, with up to 2 years of additional credit availability before a 6-year repayment period begins; useful if you're scaling up several pieces of equipment rather than buying just one. BDC does not publish a minimum or maximum loan amount for this product on its site; the up-to-12-year term and up-to-24-month interest-only period are the two structural details it does confirm. Get a vendor quote before applying; it speeds up underwriting.

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Success Profile

An established Canadian business (12+ months of revenue-generating operations) that needs to purchase or upgrade machinery, vehicles, or equipment and wants to preserve cash by spreading the cost over up to 12 years, with an interest-only ramp-up period. Good fit for manufacturers, transportation/logistics businesses, and any operation with a concrete equipment quote in hand.

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Evaluation Criteria

BDC evaluates equipment financing requests based on business creditworthiness, at least 12 months of revenue-generating operations, the nature and useful life of the equipment being financed, and the borrower's cash flow capacity to support repayment. Not competitively adjudicated; approval depends on underwriting standards, not competition against other applicants.

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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.
2 Submit a Loan Request Online Visit bdc.ca/en/financing/equipment-loan and submit your loan request with business and equipment details.
3 Talk to a BDC Representative A BDC representative reviews your request and discusses financing structure, term, and rate options tailored to your business and equipment type.
4 Provide Financial Documentation Submit business financial statements, credit authorization, and the equipment quote or invoice.
5 Receive a Tailored Financing Offer BDC presents a loan offer reflecting up to 125% of the purchase price, term (up to 12 years), and any interest-only period (up to 24 months).
6 Sign and Receive Funds Accept the offer, sign loan documents, and receive funds to complete the equipment purchase or reimburse a prior purchase.

Required Documents 5

Online loan request form at bdc.ca/en/financing/equipment-loan
Equipment quote(s) or purchase invoice from the vendor
Business financial statements
Description of the equipment and its intended business use
Personal and business credit information

Eligible Expenses 6

  • Production machinery and automated equipment/robotics purchases
  • Commercial vehicle purchases (new or used)
  • Renewable energy equipment
  • Waste management equipment
  • Installation, delivery, and related setup costs (within the 125% financing ceiling)
  • Refinancing of previously purchased eligible equipment

Ineligible Expenses 4

  • Real estate purchases (separate BDC product exists)
  • Business acquisitions (separate BDC product exists)
  • General working capital unrelated to equipment (separate BDC product exists)
  • Personal expenses of the business owner

Intake Periods

Ongoing; no intake windows. BDC accepts equipment financing requests year-round through its online portal.

Deadline Notes

Ongoing; BDC accepts equipment financing applications year-round with no intake deadlines.

Open Application Portal →

Ineligible Organizations

  • Businesses generating revenue for less than 12 months
  • Businesses not based or operating in Canada
  • Businesses with poor personal or business credit history
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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

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Clawback 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

Related Programs

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Frequently Asked Questions

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

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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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