Catalyst Finance – reviews, analysis and fees

Last updated on 10 August 2023

The full name of this lender is Catalyst Property Finance, which should give you an idea of the speciality of this business – but does it have good reviews?

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Catalyst offers secured lending which must be guaranteed against a personal or residential property, but the interest rates are competitive and the lending limits are quite high if your property portfolio meets the minimum loan-to-value ratio.

While Catalyst will be of greatest interest to SMEs looking to expand their commercial property interests, anybody seeking secured lending with a measure of flexibility on borrowing criteria may wish to investigate what this supplier has to offer.

Video: Business loans and finance explained

Catalyst business loans and finance

Pros and cons of Catalyst for business finance 

ProsCons
High lending limit on secured borrowing No online reviews
Quite flexible on lending terms – historical credit issues do not necessarily mean an automatic no Secured loans are always risky as you could lose your home if you cannot keep up with repayments
Lower interest rates than many competitors Repayment terms capped at 24 months
Catalyst Finance pros and cons

Business loans 

Catalyst has eight products, all of which are related to property finance as they need to be secured against an existing business or residential property.

Short-term bridging finance and commercial bridging finance

Borrow up to 75% of the value of your property for anywhere from three months to years, with the full balance repayable at the end of the term. This loan is designed to plug a short-term gap in funding when you know that money will eventually reach you.

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Refurbishment finance

Borrow between £10,000 and £1,000,000 for up to 24 months to refurbish and improve a commercial property.

Super heavy refurb

As above, but for complex refurbishments that require greater levels of work. Applicants will need to show experience in conducting at least three similar projects in the last five years to qualify.

Development exit bridging

Designed for property investors and owners that need to release more finance in an unfinished property. Less than 10% of the market value must remain outstanding in payments to qualify for this lending

Land with bridging finance

Take out borrowing against land that is earmarked for property development but the construction is yet to begin.

Catalyst flex bridging

A bridging loan for businesses with poor credit scores, or those that have no experience in property investment. The lending criteria is a little more flexible, but you will likely need to pay more in interest. 

Auction bridging finance

If you agree to purchase a commercial property at auction, Catalyst will offer a short-term loan to cover the initial purchase cost so you can complete the transaction.

Commercial mortgages

Many of the products we have discussed under the auspice of business loans can also be used as a commercial mortgage. We have profiled them under this previous banner as this borrowing can be used for any business purpose as long as you can justify the need for the loan.

Catalyst Finance account login

Asset finance 

Not available from Catalyst. See best asset finance

Business vehicle finance

Not available from Catalyst. See business vehicle finance.

Invoice finance

Not available from Catalyst. See invoice factoring

Merchant cash advance

Not available from Catalyst. See merchant cash advance.

Business credit cards

Not available from Catalyst. See business credit cards

Catalyst Finance key information

Phone number01202 112900 
App downloadsN/A
Websitewww.catalystpf.co.uk
Number of branchesN/A
FSCS protected?No
Founded2017
Key information

Catalyst Finance reviews

Review platformScoreNumber of votes
TrustPilotNot reviewedN/A
FeefoNot reviewedN/A
Reviews.ioNot reviewedN/A
Smart Money PeopleNot reviewedN/A
Which?Not reviewedN/A
Average scoreNo online reviews0 total votes
Catalyst Finance pros and cons

Business eligibility criteria

If you wish to take out a loan through Catalyst, you’ll need to own a property with a minimum loan-to-value ratio of 75%. In addition, you will need to satisfy the following criteria at a minimum.

  • Any bankruptcy or IVA cleared for at least three years.
  • Three years of set address history.
  • No more than 4 missed mortgage payments in the last year and none in the last six months.
  • Maximum of £10,000 in settled CCJs over the last 24 months.

Catalyst will discuss the lending options open to you based on your unique circumstances.

Business finance alternatives

As Catalyst Property Finance only offers lending secured against a property, anybody not looking to risk placing their home or business premises up as collateral against their borrowing should seek an alternative supplier that offers unsecured loans.

Additional considerations

While the UK property market has been struggling in recent months, Catalyst has been going from strength to strength, increasing total lending by some 17% over the course of 2022.

FAQ

How do I apply for a Catalyst Finance loan?

The Catalyst website offers a quick enquiry form. Fill in your details and Catalyst will call you back within two hours to discuss further. Alternatively, call Catalyst directly on 01202 112900 to learn more about how Catalyst can potentially help.

Does Catalyst Finance offer loans for general business use?

Yes, although Catalyst’s business model primarily revolves around property finance, you can borrow funds for any justifiable business purpose.  

How much will my business be able to borrow through Catalyst Finance?

The maximum loan that Catalyst will offer is £25,000,000, but this borrowing will be capped at 75% of the value of the property you are securing the loan against. So, if your portfolio is worth £400,000, you can borrow up to £300,000. 

How long is the lending term for a loan from Catalyst Finance?

Catalyst offers shorter loan terms than most lenders, with your borrowing due for full repayment over a maximum of 24 months. While this will keep your total interest due low, it will lead to higher monthly capital repayments.

How much will a business loan through Catalyst Finance cost?

Interest rates on a secured loan from Catalyst begin at 0.79% per month, so if you are offered this rate on a 24-month loan, you will pay a total interest rate of 18.96% on your borrowing. Your precise interest rate will be assigned based on your unique financial circumstances.

Will I need to secure my lending through Catalyst Finance against an asset?

All borrowing from Catalyst must be secured against personal or commercial property – this lender does not offer unsecured loans.

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