Catalyst Finance

Providing short term cash when you need it

What do we do?We provide a flexible cash facility against a single

invoice, or group of invoices, that you have raised to one of your customers.

Rather than wait, we can give you cash now until that invoice is paid by your customer

Take as much or as little as you want, when you want it

Think “Overdraft”

How do we do it?We buy your invoice, or group of invoices.

We advance to you up to 90% of the invoice value, including VAT, to give you the cash you need for your business.

Your customer will settle the invoice and money will be received into our bank account.

On receipt of cash from your customer, we pay you the balance of the monies, less our agreed fee.

What security do we need?

We are risk averse!

Three elements of security taken :

Invoice

Customer

You !

Invoice

We need to be confident that the invoice that you sell to us is for goods or services provided by you to the satisfaction of your customer

i.e. your customer recognises that the invoice is payable and will be paid.

Customer

We need to ensure that your customer has the ability to pay.

We undertake detailed due diligence on the financial position of your customer

You !In the event that the invoice is not paid, we need to

secure alternative payment

We perform financial due diligence on you

We take a Debenture or a charge over your debtor book

We secure appropriate waivers from debenture holders if necessary

AND…

Personal GuaranteeWe take an unsecured personal guarantee from

Directors

This is to ensure that you sell us invoices that you believe to be valid with no reason for non-payment.

If the invoice is not paid on time, you are best placed to chase your customer and are incentivised to do this.

Recourse only if specific invoice and other debtors fail

What does it cost?

In simple terms, €2.20 per day per €1,000 advanced.

No arrangement feeNo transaction feesNo exit feeNo contract

Flexible, measurable, manageable

Worked ExampleEnter amount of invoice inc VAT €100,000

Enter date invoice to be sold to Catalyst 01-Jan

Enter date invoice to be settled 31-Jan

Assumed maximum advance from Catalyst 80%

Maximum sum available from Catalyst €80,000

Catalyst daily fee per £1,000 advanced €2.20

Maximum daily fee for this invoice €176

Number of days funds available 30

Maximum Total Cost €5,280

Impact on Gross Margin 5.28%

What will this cost?

Enter Invoice Value €100,000

Enter date invoice to be settled 30-Jan

Advance 1 Advance 2 Repayment Advance 3Enter date funds required 01-Jan 10-Jan 15-Jan 25-Jan

Number of days funding required 30 21 16 6

Enter amount (negative for repayment) €40,000 €30,000 -€15,000 €10,000

Cumulative Funds Advanced €40,000 €70,000 €55,000 €65,000

Cost / Rebate for each tranche €2,640 €1,386 -€528 €132

Cost Summary

Maximum funds utilised €70,000

Cost of facility €3,630

Impact on Gross Margin 3.63%

Daily cost for late invoice settlement €143

The Process

Sign you up as a Client

Bear with us because this is the dreaded….

Financial Due Diligence!!

What we need from you

Completed application form

Management Accounts

Forecast / Budget for the current year

List of Debtors

List of Creditors

Client Sign Up We send documentation for your approval

Directors Resolutions Terms and Conditions Debenture and Charge over Receivables Personal Guarantee Waivers

Following your acceptance, we undertake final due diligence with site visit

Copy of Company Certificate of Incorporation Copy of Articles of Association VAT registration certificate 3 months Bank Statements Relevant Contracts Proof of identity – signed passport photo and utility bill Copy of latest mortgage statement

And now you are in a position to be signed as a Client !

Customer DocumentationYou can now apply for a cash facility against a specific

invoice or group of customer invoices

Invoice

Offer to Sell

Irrevocable Notice of Sale

Purchase Order

PaymentSubject to satisfactory Customer due diligence

and on completion of all documentation.

Cash can be advanced for the life of the invoice up to the maximum agreed.

You can draw down cash from us in stages as required

Cash can be repaid at any time to reduce costs.

Further UseThe arduous bit is behind us

If cash is required in the future, you will already be signed up as a Client and so the process will only involve Customer documentation

And remember, there is no contract so there is no need to use Catalyst in the future.

We are here to support you if you need us

Catalyst Finance

Developing and Funding Great Companies