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Catalyst Finance Providing short term cash when you need it.

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Presentation on theme: "Catalyst Finance Providing short term cash when you need it."— Presentation transcript:

1 Catalyst Finance Providing short term cash when you need it

2 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”

3 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.

4 What security do we need? We are risk averse! Three elements of security taken : Invoice Customer You !

5 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.

6 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

7 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…

8 Personal Guarantee We 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

9 What does it cost? In simple terms, €2.20 per day per €1,000 advanced. No arrangement fee No transaction fees No exit fee No contract Flexible, measurable, manageable

10 Worked Example Enter amount of invoice inc VAT€100,000 Enter date invoice to be sold to Catalyst01-Jan Enter date invoice to be settled31-Jan Assumed maximum advance from Catalyst80% 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 available30 Maximum Total Cost€5,280 Impact on Gross Margin5.28%

11 What will this cost? Enter Invoice Value€100,000 Enter date invoice to be settled30-Jan Advance 1Advance 2RepaymentAdvance 3 Enter date funds required01-Jan10-Jan15-Jan25-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

12 Cost Summary Maximum funds utilised€70,000 Cost of facility€3,630 Impact on Gross Margin3.63% Daily cost for late invoice settlement€143

13 The Process Sign you up as a Client Bear with us because this is the dreaded…. Financial Due Diligence!!

14 What we need from you Completed application form Management Accounts Forecast / Budget for the current year List of Debtors List of Creditors

15 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 !

16 Customer Documentation You 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

17 Payment Subject 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.

18 Further Use The 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

19 Catalyst Finance Developing and Funding Great Companies

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