BDC Capital — Growth & Transition Capital — Buying a business

Buying a competitor or supplier can be a powerful way to accelerate growth, but acquisition financing is often one of the biggest hurdles for Canadian businesses. The BDC Capital — Growth & Transition Capital — Buying a Business program is designed for established and high-growth companies that need substantial capital to complete an acquisition without giving up ownership or straining day-to-day cash flow. Delivered by the Business Development Bank of Canada and available nationwide, this financing focuses on helping SMEs and larger enterprises move forward with strategic purchases.

This program offers flexible, repayable financing ranging from a few hundred thousand dollars to tens of millions, making it suitable for everything from smaller buyouts to complex, multi-layered transactions. What sets it apart is its customized structure: repayment can be spread over several years, with the option to defer principal payments early on, helping businesses focus on integration and growth after the deal closes. BDC Capital’s team also works closely with business owners to design an optimal financing package, often complementing traditional bank loans or vendor financing rather than replacing them.

Depending on the situation, financing may be structured around mezzanine capital or cash-flow-based solutions, particularly useful when tangible assets are limited or goodwill is a major part of the purchase price. For business owners considering acquisition-led growth, understanding how this program fits into a broader financing strategy is a valuable next step.