what is bdc lending 
business development company lending is when a bdc lends capital to a company it has invested in the bottom linebusiness development companies are firms that exist to assist smaller or financially struggling businesses bdcs use fundraising techniques to raise capital for themselves from investors and then use that money to invest in these smaller businesses they were created by congress in 1980 to help small businesses grow while attempting to shield them from predatory tactics sometimes used to take over struggling businesses bdcs generally have higher returns than mutual funds and exchange traded funds but with these returns comes an equal increase in risk and volatility if you re considering investing in bdcs it helps to talk to a professional financial advisor to determine if they meet your investing goals and risk tolerance 