"Business Development Bank of Canada"


Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

"Business Development Bank of Canada"

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