Securitization and Specialty Finance

BDC leverages indirect channels to increase its impact on Canadian businesses by providing capital to financial intermediaries. In doing so, BDC aims to broaden its reach to support Canadian entrepreneurs through the financial ecosystem.

Our complementary solution

Through our expertise and experience in multiple industries, we provide liquidity to Canadian financial institutions throughout economic cycles. Our Funding Platform for Independent Lenders (F-PIL), in partnership with our private sector partner, assists in the growth of independent finance companies that are largely underserved in the market. Through our platform, we offer securitization, secured and structured loans for:

1. Small and medium-sized financial institutions that lend to or assist commercial entities
2. Underlying assets/securities that are primarily equipment, vehicle/fleet leases or loans
3. Inventory financing programs
4. Companies with a demonstrable ability to grow their operations

Through F-PIL, companies can access funding with scalable financial terms for more access to financing and potentially more favourable funding costs. These companies can be more competitive on pricing with SMEs.

Benefits of working with BDC

• Favourable funding costs, which can be passed on to entrepreneurs
• Funding provided on a match-funded basis, e.g. contracts funded for their entire term
• Uncommitted and committed facilities
• No public rating required
• Template documentation to make transactions more timely, cost effective and easier to complete

Securitization investment opportunities

Third-party investors are welcome to participate with BDC to purchase offered securities and benefit from:

• Structuring expertise
• Market knowledge
• Transactions tailored to investors’ requirements

¹ As of July 31, 2022