Borrowing Guide
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Catalyst Private Credit > Borrowing Guide
Understand the loan before you commit
A borrowing decision should connect the funds you need today with a repayment plan you can support. This guide explains the review process, the information to prepare, and the terms to compare.
Tell us what you need
Start with the purpose of the financing, the amount requested, your location, and the target funding date. Include the proposed repayment source and a brief description of any available security.
Provide the relevant information
The documents depend on the request. The review may include financial records, credit information with appropriate authorization, asset valuations, and supporting contracts.
Review the proposed structure
If financing can be considered, review the loan amount, term, interest, fees, payment requirements, security, and conditions. Understand what remains outstanding before any funding can occur.
Complete the documentation
The applicable agreements, security documents, and any legal or third party requirements must be completed. Funding depends on satisfying the conditions in the final commitment and loan documents.
Follow the repayment plan
Keep track of payment dates, reporting obligations, and maturity. Where repayment depends on a sale or refinance, allow enough time to complete that transaction and address any changes early.
- For any request: amount, purpose, timing, income or cash flow, current debts, and repayment plan.
- For property financing: property address, ownership, mortgage balances, valuation information, and any purchase agreement or rental details.
- For business financing: business overview, ownership, financial statements, recent bank statements, and a forecast tied to the request.
- For insurance related financing: policy ownership, premium schedule, illustration or current values, assignment details, and proposed flow of funds.
Private lending basics
Private lending generally refers to financing outside traditional bank lending, provided by individuals or non-bank lenders. Pricing and terms depend on the transaction. Compare the complete proposal with other available options.
A secured loan gives the lender rights over specified collateral, such as real estate or other assets. An unsecured loan does not use specific collateral, although the debt remains enforceable. If you default on a secured loan, the assets pledged may be at risk.
The review considers the purpose, available security, existing debts, cash flow, credit profile, and repayment plan. A property or policy value alone does not determine the amount available. Final terms depend on the approved structure.
Costs and comparisons
Consider lender and broker fees where applicable, legal and valuation costs, payment frequency, minimum interest, early repayment conditions, renewal charges, and the amount due at maturity. Ask for the total cost under your expected repayment timing.
Yes. Spreading a balance over a longer period may reduce each payment while increasing total interest. Debt consolidation should be assessed using the full repayment cost, including fees and any new security pledged.
Repayment and approval
It is the plan for repaying the loan. For a bridge, it may be a sale or refinance; for other loans, repayment may come from regular cash flow. Consider what happens if the expected event is delayed or produces less money than planned.
No. An inquiry begins the discussion. Funding requires approval, completed documentation, acceptable security where required, and satisfaction of the applicable conditions. Timing varies with the transaction and the parties involved.
Insurance and advisors
No. The use of borrowed funds and other tax requirements matter. Borrowing directly to acquire life insurance generally does not qualify for an interest deduction under the usual rule. A limited deduction for qualifying collateral insurance premiums has separate conditions. Obtain advice on the specific arrangement.
Yes. You can include your mortgage broker, insurance advisor, accountant, or lawyer in the discussion. Share their contact details with permission and explain their role in the transaction.
Have a question about borrowing?
Ask a question
Tell us what you are considering, and we can discuss the next steps for reviewing the financing. An inquiry is not a credit approval or a commitment to lend.
Have a transaction in mind? Share a brief overview and the date you need funding, and we can begin by identifying the information needed for a review.
