Business Development Bank Could Speed Things up a Bit
Filed in archive Business Banking on July 24, 2006
The Business development Bank of Canada is a Canadian Crown corporation and as with all large bureaucracies things do not move at the speed of business. Via the Ottawa Sun "The business development bank has a way of tying up even a simple process in so much red tape, you could slap a bow on it and call it a Christmas present," Tim said. "What the bank originally projected as a six-week approval has taken nine months ... and counting."
The Business Development Bank of Canada is supposed to be a support to Canadian small businesses looking for financing. With a nine-month decision making cycle I think they could improve. I am sure they have a explanation for every delay but can you imagine being the entrepreneur on the receiving end? Ugh.

Tags: bank business development Canada could business+development development+bank speed+things
Vote for Business Development Bank Could Speed Things up a Bit:
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Rating: 9.50 out of 4 vote(s) cast.
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Response from:
Greg Balanko-Dickson
(07/25/06 1:09pm)
Response from:
online prescription pharmacy
(06/19/07 8:20am)
Thru a bank you can get loans and money for different bussinesses that you are developing. The idea of credit is very much appreciated in the not so emproved countries.
Response from:
Start a corporation
(07/04/07 3:16pm)
I guess nine month is a little too long even for a bank. I know there are many things to do for a process to work right but we cannot complain about the wide range of solutions these days.
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The BDC does have a challenging job because the entrepreneur just wants his/her money. To the business owner it seems simple enough, just tell me yes or no.
The truth is that many of the loans that the BDC does are loans that would not be possible through regular banking and financing channels. Entrepreneurs should be cautious when they get positive feedback and not put the cart ahead of the horse. Be patient and do not spend the money until you get it.
The BDC has it's own due diligence to conduct to protect the bank. Plus when something involves Intellectual Property (IP) - this only complicates a decision because if I was investing in a company with IP I would want to do my own research into the IP and they market.
What the Ottawa Sun piece did not say was how much of the delay was due to the business owner and preparing a business plan. I have seen many an experienced business owner freeze up writing a business plan.
So just remember, there is always more to a story than what is possible to get across in a short post. Hopefully this helps clarify the Ottawa Sun's article.