On Thursday September 1st, our CEO, Karen Try met with Tyler Jeffery who is an Account Manager at The Business Development Bank of Canada [BDC]. In his role, Tyler works with small to medium-sized businesses to provide guidance and assistance in all areas of financial management so they may increase profitability and boost the value of their company.
The Business Development Bank of Canada [BDC] complements the charter banks and is a financial institution devoted to Canadian entrepreneurs. It is a Crown corporation that operates at arm’s length from their sole shareholder, the Government of Canada. The mandate of the BDC is to be the bank for all entrepreneurs, offering support for the business life cycle and making entrepreneurs’ well-being a priority. The BDC provides funding and advice to small and medium-sized firms in all industries and stages of growth.
Industries such as manufacturing, wholesale, construction, transportation, food, and beverages have been hit hard by the pandemic and have reached out when they have reached their line of credit. Because of flexible financing, advisory services, and smart capital, the BDC can often support businesses when charter banks cannot.
If you have additional questions about the BDC, you can visit their website: www.bdc.ca or contact Tyler directly at tyler.jeffery@bdc.ca. During their one-on-one, Tyler and Karen discussed various topics that small business owners may find useful. Read on to learn more.
Q&A with Tyler Jeffery
Q: What is the most common challenge that leads a small business owner to seek advisory services?
A: Business owners are good at what they do but often find they are lacking in financial management. Owners get consumed by the day-to-day business management. Tyler’s role is to assess the business’s current financial situation, identify gaps, and then help them to prioritize processes to improve cashflows and avoid financial pitfalls in the future.
The duration of the program is 8-12 weeks. During this time, Tyler advises his clients on the available funding opportunities, either in the form of financing at a reasonable interest rate or grants that are currently available. One example is the current grant referred to as the CDAP [Canada Digital Adoption Program] that was implemented by the government in January 2022. This grant helps small and medium-sized enterprises (SMEs) build their digital plan and adopt digital technologies to increase their competitiveness.
The CDAP covers items directly related to the digital plan, such as the following:
- Acquiring IT equipment
- Installation of new technologies
- Updating and/or expanding IT equipment
- Training staff on onboarded technologies
- Materials and support services directly related to onboarding the technology
- Further advisory services on particular aspects of the digital adoption plan
Source: bdc.ca
Q. Do you have general tips to help all business owners avoid financial pitfalls in their business?
A. The ability to analyze cash flows and maintain regular financial oversight is crucial for business owners. Developing financial acumen can reveal more opportunities to boost cash flow for a better and healthier organization.
Q. At what stage in a business’s life cycle would you recommend that a small business owner get in touch with you?
A. Tyler works with business owners at all stages of their business life. A new business owner that brings experience, a solid business plan, and cashflow projections can benefit from the services of the BDC. Generally, a small business would go to the BDC after 24 months in business with demonstrated growth and $250K – 350K (CAD) annual revenue.
Q. Since many small business owners relied heavily on rent and salary subsidies to survive the pandemic, they agreed to take out a loan that now must be paid back in full by the end of 2023. Can the BDC help those already cash-strapped businesses?
A. Where a chartered bank generally requires securities for lending, the BDC can be more flexible in financing a business with strong cash flow projections and a solid business plan. In other words, if a business is currently operating with positive cash flow and is solid overall, the BDC may be able to help as financing is typically more flexible.
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