FAQ
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Catalyst Private Credit > FAQ
Getting started
We lend against commercial and multi-family real estate, land and construction projects, and business assets such as receivables, inventory and equipment. Our solutions include bridge financing, first and second mortgages, construction and land loans, asset-based facilities, equipment and growth capital, and special situations. If your transaction is secured by real assets in Western Canada, it is worth a conversation.
Most Catalyst loans fall between $500,000 and $15 million. Smaller facilities are considered where the structure is simple, and larger transactions can be arranged with co-lenders.
We typically issue a term sheet within 48 hours of receiving a complete package and can fund in as little as two to three weeks when appraisal, legal and environmental work proceed smoothly. If the timeline is tighter, tell us early and we will say whether it is realistic.
Yes. A large share of our transactions come through brokers, accountants and lawyers. Broker fees are disclosed in the commitment and protected at funding.
Real estate lending
We keep loan-to-value conservative and set it for each transaction based on asset type, location, liquidity and the strength of the exit. Transitional and specialized assets attract lower advance rates than stabilized multi-family. We obtain an independent appraisal on every real estate loan.
Yes, where the first mortgage lender will consent and the combined loan-to-value remains within our guidelines. Second mortgages are a practical way to extract equity for a purchase, a buyout or a tax balance without disturbing favourable first mortgage terms.
That is where private credit is most useful. Buildings in lease-up, properties being repositioned and assets with near-term lease expiries are a large part of our book. We underwrite the plan and the value on completion as well as the value today.
Bridge and asset-based lending
A clear reason the capital is needed now, strong security at a conservative loan-to-value and a credible, dated exit: a sale agreement, a takeout commitment or a capital event. We underwrite the exit as carefully as the asset.
Availability is calculated monthly from a borrowing base, typically a percentage of eligible receivables and inventory, plus a term component against appraised equipment where applicable. The line grows with the business rather than being capped by last year's statements.
Extension options are written into most Catalyst commitments so that a short delay does not become a default. If the exit changes materially, talk to us early. We would rather restructure a loan with a borrower than enforce one.
Process and costs
Pricing reflects the risk and the speed of each transaction and is quoted on the term sheet as an interest rate plus a lender fee, with legal and appraisal costs paid by the borrower. We encourage borrowers to compare the all-in annualized cost over the expected life of the loan, not the headline rate alone.
Our own credit committee, which includes the partners who originate the loan. There is no external approval, which is why we can give a clear answer early.
A short summary of the transaction: the property or business, the amount requested, the proposed security and the planned exit. For real estate, a rent roll and any existing appraisal. For operating businesses, recent financial statements and an aged receivables listing. Send what you have and we will tell you what else is needed.
Still have questions about a transaction?
Talk to the credit team directly
Every deal is different. Send us a short summary and we will tell you within a day whether it fits, and what we would need to move forward.
Have a transaction that needs certainty and speed? Talk to the Catalyst credit team about how we would structure it.
