raising money from the BDC
I got a question from one of my YouTube
viewers one who wrote in to say I live
in Toronto I went to the BDC and that
stands for Business Development Bank of
Canada and you know they lend money to
startups they don’t ask for collateral
and he wanted my advice on what to do do
I know about them should he work with
them or not this is more of interest to
my Canadian audience but there’s
implications that will impact you if
you’re trying to raise money from
anybody that I’ll share in the video the
BDC is a crown corporation it started by
the government and they’re really trying
to be a bank of last resort a lender of
last resort so they will touch the
businesses that banks don’t want to
touch because it’s too risky I’ve done a
lot of work with the BBC I didn’t raise
money myself as an entrepreneur but when
I was in the venture capital business I
partnered up with them a lot the thing
with the BBC is they will usually two
things one ask for more so because
they’re taking on a riskier project
they’re going to take a higher interest
rate so if you can get a loan from a
bank or the BBC I’d go to the bank first
because you’ll get a better rate but you
may not have an option and that’s what
the BBC is there for if you can’t get an
option then you go to the BTC and you
pay more the second thing with the BBC
is often they will want you to work with
their experts so part of the money will
go towards hiring a consultant to help
you with whatever problem you’re facing
right now if it’s branding or growth or
marketing or finance whatever it is
often they’ll recommend that you use one
of their experts and they’re their third
party to come in and help you and part
of the money that they’ll give you is to
to hire that person so you have to be
okay with that you have to want to use
their expert and and like them and agree
with them and you know have a good
relationship with them so those are the
two things about the BBC I would
definitely explore the option but I
would back up before that and see do you
really need to raise money you know if
you’re just starting out a bit
this I hate spending money until I’m
making money and I always try to find a
way to start small even start with the
service get close to your customers get
to know them prove that what you have in
mind will work start building something
up and then when you’re ready to expand
if you show that you can get some people
to pay for this thing whatever your
product or service your salad you didn’t
mention in your email prove that it
works go get some customers then when
you go talk to any kind of financial
institution you’re raising marketing
capital you’re raising expansion capital
it’s a lot easier to get you’ll get way
better rates you’ll have people climbing
over themselves to work with you and you
won’t have to give up as much of your
business so if the only person is
willing to touch you is the BDC right
now who’s the lender of last resort and
there may be something wrong with your
business you may want to think about
starting up without going into debt
without taking on this startup capital
and building it up from there now if
they’re not asking for collateral then
there’s not as much of a downside right
if it fails they’re not taking your
house but it’s gonna be on your record
and the next time you go for capital
from any bank BDC angel investor whoever
it is they’re gonna see that you took
out this money and you didn’t make it
work so that’s the risk you become
harder to work with in the future if
this venture doesn’t work out so I’d
really focus in on trying to get money
start a service start small have a big
vision but start small get capital in
from your customers keep building it up
and when you’re ready to expand when
you’ve shown that your proof of concept
works then it’s going out talking to the
guys if it’s bankers angel investors
venture capitalists to really build it
up but you may not even need to get
there there’s nothing wrong with
bootstrapping a business and taking it
up so those are my thoughts on the BDC
great potential partner to work with but
I’d really start above that and really
look at you really need to go and get
financing or not believe those you’re
watching like the video please give it a
thumbs up
and if you have a question about the BDC
about raising capital from banks about
raising capital for your business or any
other question for your company leave it
below in the comments
I love seem to come in and I love making
video responses for you thank you and
I’ll see you soon
I got a question from one of my YouTube
viewers one who wrote in to say I live
in Toronto I went to the BDC and that
stands for Business Development Bank of
Canada and you know they lend money to
startups they don’t ask for collateral
and he wanted my advice on what to do do
I know about them should he work with
them or not this is more of interest to
my Canadian audience but there’s
implications that will impact you if
you’re trying to raise money from
anybody that I’ll share in the video the
BDC is a crown corporation it started by
the government and they’re really trying
to be a bank of last resort a lender of
last resort so they will touch the
businesses that banks don’t want to
touch because it’s too risky I’ve done a
lot of work with the BBC I didn’t raise
money myself as an entrepreneur but when
I was in the venture capital business I
partnered up with them a lot the thing
with the BBC is they will usually two
things one ask for more so because
they’re taking on a riskier project
they’re going to take a higher interest
rate so if you can get a loan from a
bank or the BBC I’d go to the bank first
because you’ll get a better rate but you
may not have an option and that’s what
the BBC is there for if you can’t get an
option then you go to the BTC and you
pay more the second thing with the BBC
is often they will want you to work with
their experts so part of the money will
go towards hiring a consultant to help
you with whatever problem you’re facing
right now if it’s branding or growth or
marketing or finance whatever it is
often they’ll recommend that you use one
of their experts and they’re their third
party to come in and help you and part
of the money that they’ll give you is to
to hire that person so you have to be
okay with that you have to want to use
their expert and and like them and agree
with them and you know have a good
relationship with them so those are the
two things about the BBC I would
definitely explore the option but I
would back up before that and see do you
really need to raise money you know if
you’re just starting out a bit
this I hate spending money until I’m
making money and I always try to find a
way to start small even start with the
service get close to your customers get
to know them prove that what you have in
mind will work start building something
up and then when you’re ready to expand
if you show that you can get some people
to pay for this thing whatever your
product or service your salad you didn’t
mention in your email prove that it
works go get some customers then when
you go talk to any kind of financial
institution you’re raising marketing
capital you’re raising expansion capital
it’s a lot easier to get you’ll get way
better rates you’ll have people climbing
over themselves to work with you and you
won’t have to give up as much of your
business so if the only person is
willing to touch you is the BDC right
now who’s the lender of last resort and
there may be something wrong with your
business you may want to think about
starting up without going into debt
without taking on this startup capital
and building it up from there now if
they’re not asking for collateral then
there’s not as much of a downside right
if it fails they’re not taking your
house but it’s gonna be on your record
and the next time you go for capital
from any bank BDC angel investor whoever
it is they’re gonna see that you took
out this money and you didn’t make it
work so that’s the risk you become
harder to work with in the future if
this venture doesn’t work out so I’d
really focus in on trying to get money
start a service start small have a big
vision but start small get capital in
from your customers keep building it up
and when you’re ready to expand when
you’ve shown that your proof of concept
works then it’s going out talking to the
guys if it’s bankers angel investors
venture capitalists to really build it
up but you may not even need to get
there there’s nothing wrong with
bootstrapping a business and taking it
up so those are my thoughts on the BDC
great potential partner to work with but
I’d really start above that and really
look at you really need to go and get
financing or not believe those you’re
watching like the video please give it a
thumbs up
and if you have a question about the BDC
about raising capital from banks about
raising capital for your business or any
other question for your company leave it
below in the comments
I love seem to come in and I love making
video responses for you thank you and
I’ll see you soon
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