For acquiring medium-sized Canadian businesses ($1M to $5M), effective alternatives to traditional BDC loans include vendor financing, private equity or investor partnerships, leveraged buyouts using asset-based lending, and royalty or revenue-based financing. These options can provide flexible terms, lower upfront capital requirements, and faster access to funds compared with conventional bank loans.

For Canadian buyers targeting $1–5 M businesses, effective alternatives to traditional BDC loans are seller financing (VTB), mezzanine/subordinated debt, and bringing in equity partners or private investors. These options ease upfront pressure, give flexibility, and feel emotionally like a safety net letting you pursue the deal without being crushed by rigid bank rules.