Business Development Bank financing to help entrepreneurs invest in technology

Financing tailored for acquisitions of software, hardware and consulting services

Montreal, QC (Jan. 24, 2013) – The Business Development Bank of Canada (BDC) offers tailored financing to entrepreneurs who want to invest in information and communications technology (ICT) equipment, software and consulting services, which includes IT planning, strategy, security, online services, Internet marketing and social media.

“Entrepreneurs have repeatedly told us that they have difficulty finding the funds to invest in hardware and software. In fact, many dig into their short-term working capital to fund such purchases, effectively reducing the cash flow they need to operate their business,” says Michel Bergeron, BDC’s Senior Vice President, Marketing & Public Affairs.

The BDC technology loan has a 4-year amortization period and offers SMEs the immediate benefit of technology upgrades. The financing is easily accessible, flexible, and well-priced. The funds can be used to purchase everything from traditional desktop computers and software to the latest tablets, and consulting services, while helping to preserve much needed short-term working capital.

Filling a market need

When faced with the enviable challenge of expanding into international markets, Omar Hammoud, President and CEO of APG-Neuros used the technology financing loan to invest in new software. The software will help him successfully cope with the increasing demand for his products and his venture into global markets.

“Most banks are reluctant to finance software because it’s an intangible asset, which can’t be held as security,” says Mr. Hammoud, whose company makes turbocharged air blowers for waste water treatment and other industrial applications. “However, the loan we received is giving us the time and money we need to improve management of all our processes. At the same time, it has freed up capital to develop our markets in Europe, Africa, the Middle East and South America.”

“We’re always looking for innovative ways to help Canadian entrepreneurs improve the productivity and competitiveness of their businesses,” added Mr. Bergeron. “Canadian companies consistently lag behind their competitors and much of this problem can be attributed to insufficient investment in technology. We simply must do more to encourage early adoption of information and communications technology.”

More information about BDC technology financing is available in the Tech Financing section, or view the video here.

About BDC

Canada’s business development bank, BDC puts entrepreneurs first. With almost 2,000 employees and more than 100 business centres across the country, BDC offers financing, subordinate financing, venture capital, securitization and consulting services to about 28,000 small and medium-sized companies. Their success is vital to Canada’s economic prosperity. Visit www.bdc.ca.

SOURCE: Business Development Bank of Canada