Catalyst can provide financing working capital through “spot discounting” a type of invoice discounting which is well known in North America relatively new to the UK business landscape.
More commonly, it is a step in the process of growth, taking a business to the next stage. The business may become self-sufficient through profitable trading, or it may grow to the point where a viable case can be presented to a traditional bank or invoice discounter.
Who can benefit?
• Early stage enterprises: Banks and traditional factors turn early stage businesses down not because they are bad businesses but purely because trade history is too short.
• High Growth: Lack of cash resource is the most common factor holding back growth in small businesses. Traditional funders shy away from over-trading and will not usually support it.
• Seasonal business: Catalyst can be a cost effective solution to occasional cash shortfalls avoiding the need for long term factoring deals which are not needed most of the time.
• Crisis situations: Catalyst responds quickly and can often step in during a crisis provided a clear plan exists to resolve underlying problems
• During negotiation of other financing solutions: Catalyst can provide stop-gap finance whilst permanent solutions – such as new equity, business reconstruction or even just traditional bank funding – are being organised.
