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"Business Development Bank of Canada"

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Published in: Economy & Finance, Business

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  • 1. Business Development Bank of Canada TechExpo 2004
  • 2. Business Development Bank of Canada
    • Who we are and What we do
    • Consulting Services
    • Financial Services
    • Investment Services
      • Venture Capital
      • Subordinate Financing
    • Where to find us
  • 3. Who we are
    • Canada’s small business bank since 1944
    • Self-sustaining crown corporation – profitable!
    • Play complementary role to all major commercial lenders
    • Over $8 Billion asset base – over $2 Billion in annual lending
    • 22,000 clients; Customer Satisfaction over 90%
    • Approx. 80 branches
  • 4. What we do Financial Services Venture Capital Subordinate Financing Consulting Group
  • 5. BDC Consulting
    • Fully-customized value-added service offerings
      • Productivity, human resource management, quality, growth, export, e-business
    • BDC is a leading national provider of ISO (quality) consulting market
    • Fiscal 2003 achievements
      • Repeat business reached 46%
      • Completed 3,625 projects
      • Total revenues of $18.2 million
  • 6. Financial Services
    • Traditional term lending
    • 95% of the Bank’s overall lending activity
    • A number of different financial solutions but one common theme – money for viable businesses – NO GRANTS!
    • Two products to look at:
          • Innovation
          • Co-Vision
  • 7. Innovation Financing
    • To support Canadian Business that have opportunity for growth or process improvement but lack funds including MBO situations
    • A working capital loan with lower security requirements than term loans
    • Eligibility all BDC eligible clients
    • Loans up to $250K
    • Security against fixed assets not always required
    • Pricing ranges from 3.5 over our base rate and up based on company strength
  • 8. Co-Vision
    • To promote the creation of new viable businesses
    • New businesses
      • A business being established for the first time
      • An established business that has not registered 12 consecutive months of sales
    • Business Plan
    • Repayment over 6 years (includes 1 yr deferred payment)
    • >$50,000 – secured by fixed assets
    • <$50,000 – personal guarantee
  • 9. Investment Group: Venture Capital
    • One of largest VC groups in Canada
      • Established in 1975
      • Over $400M in Assets
    • Invests in all stages of company lifecycles (seed through expansion
    • Focuses on:
      • Technology-based business
      • -High growth potential
      • Positioned to be a dominant player in their market
  • 10. Investment Group: Subordinate Financing
    • Mezzanine, Quasi-Equity, sub-debt, junior debt, etc… many different names but same common principal…..
    • Hybrid of debt and equity…depending on how it’s structured.
    • Subordinate refers to the fact that we are behind senior lenders.
  • 11. Sub-Debt (cont’d)
    • Provide clients with a flexible financing tool that has equity type properties without ownership dilution
    • Appropriate financing of growth opportunities can lead to greater profitability and viability
    • Looked on favourably by financial partners – often viewed as equity for covenant calculations
    • Competitive advantage in the market place. Look at deal sizes ranging from $250k - $5.0M first round
    • Partner with all other players
    • Not only high-tech focused
  • 12. Sub-Debt - Applications
    • Sub-debt can be used in three different applications…
    • Growth Capital
    • Management buyouts/buy-ins
    • Mergers and acquisitions
  • 13. Conclusion
    • Our ONLY focus is growing and assisting Canadian Businesses
    • BDC tries to fill market gaps to meet the needs of Canadian Businesses
  • 14. Where to find us
    • www.bdc.ca
    • 1-888-INFO-BDC
    • Visit the Branch at 55 Metcalfe