BDC vs. a Schedule I bank: which loan is right for you?
Both fund small businesses, but they behave differently. Knowing which door to knock on — and how each one thinks — saves you weeks.
A Schedule I bank (the big Canadian banks) is your everyday lender: quicker for straightforward, well-secured deals, and the relationship often bundles with your business account.
BDC (the Business Development Bank of Canada) is a complementary lender that's often more comfortable with growth capital, longer amortizations, and businesses that don't tick every conventional box.
Rough rules of thumb
- Clean, well-collateralized, standard request → start with your bank.
- Longer horizon, softer collateral, or a growth story that needs patience → BDC is worth a serious look.
- Many owners end up using both, in layers.
What doesn't change
Whoever you approach, the file gets read against the same fundamentals — coverage, experience, documented assumptions. The lender changes; the standard doesn't.
See where your plan stands
Paste the plan you have into the free Scanner. It scores you against the eight criteria Canadian lenders use — in about thirty seconds, no account, nothing leaves your device.
Score my plan — freeLenderReady is an educational service, not a lender, broker, or financial advisor. Lending criteria vary by institution and change over time; treat this as a starting point, not a guarantee.