To settle or maintain "good relationship" with BDC?

searcher profile

November 19, 2023

by a searcher from Staffordshire University in Toronto, ON, Canada

I'm considering settling a loan with BDC from a previous business and debating whether it's worth it to not settle and pay it off in full just to maintain a good relationship with BDC with the intent of them providing debt for acquisitions in the future. Does anyone know how valuable a good relationship with BDC really is? And if they offer financing for acquisitions even when they have a good relationship with the client?

Or should I just save the money and settle?

Finance help needed !! :)

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Reply by a searcher
from University of Washington in Manhattan, New York, NY, USA
I am a bit biased on this...but happy to help. Not paying off debt is not a good thing generally with any new or prior lender. Please provide more context on the circumstances regarding the prior debt.
commentor profile
Reply by a searcher
from Camosun College in Victoria, BC, Canada
BDC in my experience dealing with them as an accountant does provide funding to entrepreneur when other banks won't. Why do you have to settle?
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