BDC Aids Auto Parts Manufacturers to Continue Production
BDC aids auto parts manufacturers to continue production in Canada. Being updated with the latest Canada business news can give Canada entrepreneurs precious input on how big players effectively manage their businesses and how to achieve success.
BDC or Business Development Bank of Canada has issued a new, short-term Purchase Order Financing step to aid closed manufacturers of auto parts continue their production.
Being a section of Canada’s Economic Action Plan’s Business Credit Availability Program or BCAP, this introductory step will enable businesses, which are qualified financially to be given credit and provided with temporary working capital required to continue production until both market and economy conditions are stable.
According to Honorable Tony Clement, the Industry Minister, through the assistance of BCAP, owners of small and average-sized auto parts businesses are going to feel the increase of access to loans. Their economy will benefit hugely from the success and development of these small businesses, simply because such businesses comprise ninety-eight percent of Canada’s business institutions.
This kind of financial assistance is opportunely and considered an efficient way of enhancing Canadian businesses’ access to loans, says Minister of Finance, Honorable Jim Flaherty. He adds that such action is a helpful to improve the present stature of automotive manufacturers, as well as the Canadians.
Before a business can be qualified for such financing assistance, it should be, first of all, Canadian owned, capable of growing, major business is auto parts production, auto parts sales should be a minimum of 40% and last but not the least, a proven supplier for at least a year.
As industry of automobile parts recovers, it is justifiable that auto parts manufacturers be funded with working capital to accommodate more orders. This, in turn, will make a quick rise from the production freefall encountered before which resulted to a sudden slowness in cash flow.
Mr. Gerry Fedchun, President of the Automotive Parts Manufacturer’s Association, states that they could not agree more with BDC’s initiative.
BCAP, BDP and EDC, or Export Development Canada are supplying minimum amount of $5 billion for direct lending, as well as other assistance needed. They have worked closely with private sector lenders to make this program more successful.
BDC, as Canada’s business development bank, encourages entrepreneurship by giving loans with different payment options, risk capital and entrepreneur consultation.
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