FAQs

The Catalyst Fund

How often are there information webinars?

We run regular Office Hours webinars to provide you with more information about the Catalyst Fund and our other social investment products and support. You can find a full list of webinar dates and times on our Events page.

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. 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. The total amount you will repay with Catalyst will be similar to a term loan, but the variable repayments ensure that it will be affordable as your business grows.

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 projects.

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 a member of our team before starting 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?

It depends upon how much dialogue and assessment work is needed! We’ll work closely with you throughout the process and give you our best estimate of timescales.

I have already secured social investment, am I still eligible for this fund?

If you require further investment to grow AND can show that you will be able to service additional repayments but cannot access this from other social investment providers, then you may be eligible. You may need consent from your existing investors to raise further financing – check your terms and conditions.

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.

Are there any things Catalyst won’t fund?

Aside from the eligibility criteria, we are a growth focused fund so we cannot fund businesses in financial distress, business as usual costs, or refinancing other funders or investors.