That is true. Most applicants opt for finance option, rather than paying full amount, mainly because your money get stuck for 4 years. and $800K is a huge amount to spare for 4 years.
As far as I know, following is difference in Full Investment and Financed Investment
Full Investment
- The investor deposits the full amount of CA$ 800,000. No further payment is required.
- After five years, CDN $800,000 is returned to the investor with no accrued interest. (The funds are invested in government bonds during the five-year term.)
Financed Investment
- The investor pays a reduced amount*, which is used to finance a CA$ 800,000 closed five-year term loan from a chartered bank. No further payment is required. However, the paid amount is not returned to the investor at the end of the five-year period.
- This option is particularly attractive for applicants seeking to retain maximum capital for investment in ongoing business operations.
- You could receive a grant of $40,000 to $250,000 and covering up to 10% of project costs.
- Financing covering up to 10% of total project costs (15% for business start-ups) - For projects costing between $300,000 and $400,000, the amount of the financial assistance is set at $40,000 **
* This amount may change marginally, if the prime lending rates in the national banking system rise or fall in response to changes in the Bank of Canada key interest rate.
** The contribution is paid out over four years. The maximum is $250,000 per company within a three-year period.
So, if you opt for financed option, you are left with $580,000 which will be in your possession and you can invest that money to build up your life here in Canada. Moreover, a lot can change in the next 4 to 5 years or so. For example, a property which is $300K right now, won't be $300K after few years, and would most likely increase. But your $800K will remain the same and when it's returned to you, ground realities are different now. I would only advise you to go for full investment if you have ample amount of funds available. In term of financed investment, you can even negotiate with your intermediaries about the final agreed payment.
You have to choose from the
List of financial intermediaries.