Updated August 2026 · Verified against BDC guidelines
✓ First-Timer Friendly Loan
Loan Federal Active

BDC Purchase Order Financing

BDC
Loan Range
Loan of up to 90% of the confirmed order value, excluding...
Continuous. No application deadline is published.
Visit Official Program →
Difficulty
Moderate
Payment
Loan
Trend
Stable
First-Timers
Friendly ✓
Financing share
90%
BDC Purchase Order Financing provides loan of up to 90% of the confirmed order value, excluding taxes, deposits and other payments received from the buyer. Short-term loan to cover supplier costs for confirmed purchase orders of physical goods. 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

Short-term loan to cover supplier costs for confirmed purchase orders of physical goods. BDC disburses funds to the borrower rather than via factoring, so suppliers can be paid directly.

Eligibility Requirements

  • Canadian businesses selling physical goods.
  • Must have confirmed purchase orders.
  • Business must be based in Canada and generating revenue for 12 months or more.
  • Must have a good credit track record.
  • Funds are disbursed to the borrower to pay suppliers directly; BDC does not factor receivables.
Provinces
All Provinces
Industries
All
Business Stage
Startup Growth Established

Quick Assessment

Difficulty
Moderate
Competition
Moderate
First-Timer
Friendly

Funding Details

Amount
Loan of up to 90% of the confirmed order value, excluding taxes, deposits and other payments received from the buyer.
Type
Loan
Level
Federal
Financing share
Up to 90% of eligible costs
Deadline
Continuous. No application deadline is published.

Program Scorecard

Competition, effort, and approval at a glance

Competition
Moderate
Deadline
Ongoing
Approval
Varies
Accessibility
3/5

Moderate — standard application process

Competition
3/5

Moderate competition — prepare a strong application

Difficulty
3/5

Moderate — standard requirements

Budget Trend
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How to qualify

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

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Insider Tip

Repayment can be aligned to the payment terms of the purchase order itself, using interest-only payments during the order cycle and a single balloon payment at the end, and BDC can disburse in Canadian or US dollars so a US-denominated supplier bill does not expose you to currency swings.

Rejection Pitfalls 5

  • No confirmed purchase order. This product funds an order, not general working capital
+4 more pitfalls
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Success Profile

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Evaluation Criteria

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Premium All 5 pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓

How BDC judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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Written answers1no length limits stated
Judged on2 criteria
Can reject you8 rules
To attach6 documents

Distilled from 6+ source documents, condensed into one brief. Sources as of 2026-09-07.

6 of the sources

What BDC favours

Pay suppliers before order delivery◦

“Purchase order financing provides funds to pay suppliers or cover production costs before you deliver an order.”

1 more, in their words

The form1 prompts shown

Eligibility pre-screen2 sections
  1. 1Requested borrowing amountselection + written

    How much do you want to borrow?

  2. 2Time in operationselection

BDC states no length limits for these answers.

1 more prompts, in the funder’s words

Judged against2 questions · 2 criteria

  1. 1

    Does this business meet BDC's minimum requirements?

    Show them Show 12 months or more in operation, revenue being generated, a Canadian location and a good track record.◦

    In the funder’s words · 1
    • Loan approval and amount are subject to eligibility and financing criteria.
  2. 2

    Will due diligence support a loan offer?

    What to show, and the funder’s 1 criterion behind it in Premium

2 questions the reviewer answers about you, in Premium.

Where applicants failin BDC’s words

“Loan approval and amount are subject to eligibility and financing criteria.”
“All applications undergo a due diligence review before any loan offer is made.”
“Sorry. Based on the information provided, your business doesn’t meet the eligibility criteria for this business loan.”

Premium · the rest of this brief

See all 8 rules that can reject you and every criterion you are judged on. Then we draft your application for you.

4 more rules that can reject you · 1 more criteria · 1 more prompts

$39 / month$299 / year save 36%Every program · Application workspace · 30-day money-backOr unlock this programme’s playbook alone · $19

Do you pass?8 checks

Each one can rule you out. Tick the ones you meet.

Your business

  • Located in Canada

    Based in Canada

  • 12 months or more in operation

    12 months +

  • Generating revenue

    Generating revenue

  • Over $350K: $250K revenue

    For more than $350K: At least $250K in annual revenue

4 more checks

Documents to attach6

Ticks are kept on this device.

The money

Minimum requestMinimum $10,000

Enter an amount of $10,000 or more.

Amount tiersTiers: $100K, $350K, custom

Up to $100K - Faster approval; Over $100K and up to $350K - Flexible terms; More than $350K - Customized financing

Repayment structureInterest-only, balloon at end

Take advantage of interest-only payments and one balloon payment at the end of the term.

What it pays for · 1
  • Purchase order financing can help businesses pay suppliers, buy inventory, or manufacture goods to fulfil large or unexpected customer orders.

From application to money

  1. Send online requestSubmit online request
  2. Talk to BDCBDC representative calls
  3. Decision on offerDecision under 10 days
  4. Accept and signAccept and sign
In the funder’s words · 4
Send online request
Complete the five-question public eligibility pre-screen and submit the loan request online.
Talk to BDC
A BDC representative calls to discuss the project and the documents needed for analysis.
Decision on offer
Approval in less than 10 days¹
Accept and sign
If the business qualifies for a loan, you accept the offer and sign the related documents.

Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.

What's in this Playbook

Everything you need to secure BDC Purchase Order Financing

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

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Application Playbook

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

Premium 3 steps 1 docs

Application Steps

1 Submit a loan request online Tell BDC about the order and provide information about your business. It is a short form and BDC states there is no impact on your credit.

Required Documents 1

✓ A confirmed customer purchase order. BDC identifies the rest of the documents needed for its analysis on the call that follows your online request

Eligible Expenses 4

Deadline Notes

Premium Get the step-by-step application guide — documents, timeline, and what to prepare.

Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Stacking partner data not yet available.

Combined Funding Potential See your total funding potential

Clawback Risk

Not-applicable Risk

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How BDC Purchase Order Financing Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
BDC Purchase Order Financing Loan of up to 90% of the confirmed... Moderate Loan Continuous. No...
Black Entrepreneurship Program Up to $250,000 Moderate Loan Ongoing
Canada Small Business Financing Program Up to $1.15 million Easy Mixed (Advance + Reimb.) Ongoing
Investissement Québec — Project Finan... Varies Hard Mixed (Advance + Reimb.) Ongoing
Futurpreneur Canada Startup Program Up to $75,000 Moderate Loan Ongoing

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Frequently Asked Questions

Quick answers to the questions founders most often ask about BDC Purchase Order Financing

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What is purchase order financing and how does it work?
It covers supplier costs so you can fulfil a customer order when cash flow is tight. If you receive a confirmed purchase order but do not have the funds to support production costs or pay suppliers for materials, this provides that capital. Once the order is delivered and your customer pays, you repay the financing.
How much of the order will BDC finance, and how long do I have to repay?
Up to 90% of the order value, excluding taxes, deposits and other payments received from the buyer, with up to 18 months to repay.
Is this factoring? Does BDC deal with my customer?
No. BDC does not do factoring. The funds are disbursed to you so you can pay your suppliers, and you reimburse BDC directly.
When should I use this instead of invoice factoring?
Purchase order financing is the right tool when you have a confirmed order but not the cash to buy inventory or pay suppliers up front. Invoice factoring suits the opposite moment, after you have delivered and issued an invoice and are waiting on payment, typically within 30 to 90 days.
What are the minimum requirements?
Based in Canada, generating revenue for 12 months or more, currently generating revenue, and a good credit track record.
Can I get the money in US dollars?
Yes. BDC can disburse in Canadian or US dollars, so a supplier bill in US dollars does not expose you to currency fluctuations.

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