The Catalyst Fund
How often are there information webinars: We will be running regular webinars to provide you with more information about the Catalyst Fund. You can find a full list of webinar dates and times on our website: [insert link]. . How does this compare to a private loan, or traditional social investment? Traditional social investment mostly […]
How often are there information webinars:
We will be running regular webinars to provide you with more information about the Catalyst Fund. You can find a full list of webinar dates and times on our website: [insert link]. .
How does this compare to a private loan, or traditional social investment?
Traditional social investment mostly takes the form of term loans with fixed repayments each month with an interest rate applied. Loans from private investors typically utilise the Social Investment Tax Relief, which means there are no repayments for the first three years, after which you make arrangements with the investor on how repayments will be made. Catalyst has variable repayments from year 2 and is repaid for as long as it takes to reach a pre-agreed multiple of the investment.
I am a start-up social enterprise, is this fund for me?
Whilst we accept early stage enterprises, you should be able to evidence trading income. This should be more than market research and should at least include trial trading, or letters of intent from interested customers, or pilots.
I just want to access the application form, can I do so?
Due to the nature of this fund it is necessary to have a chat with one of our staff members before submitting an application form. This will help to establish whether this fund is right for you and allow you to chat to one of our advisors before submitting a formal application.
Once I have applied, how long will it be until I receive a decision?
After you have submitted an application, you will receive a decision within 8 weeks.
I have already secured social investment, am I still eligible for this fund?
If you require further investment to grow AND will be able to service additional repayments, but cannot access this from other social investment providers, then you may be eligible. You should attend a webinar to learn more and, if appropriate, submit an expression of interest.
What is revenue-based investment?
Revenue-based investment, revenue-based finance, revenue participation and quasi-equity are all terms used to describe similar funding practices where repayments are based on the performance of the organisation. A Catalyst Fund loan will be repaid by a percentage of your revenue until you repay an agreed multiple of the original investment amount. The overall total you repay will be similar to other social investment products that charge interest, just calculated differently.
Will Catalyst accept early repayment?
Yes. Your repayment will naturally increase with good trading performance but you may decide you want to pay off more earlier, or you may accept follow-on investment from another investor which enables you to exit from Catalyst. We are happy to discuss this.