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Catalyst, the country’s second-largest private equity firm, is seeking to raise as much as $200-million to expand a business that offers loans to companies that otherwise can’t find credit.
Catalyst, the country’s second-largest private equity firm, is seeking to raise as much as $200-million to expand a business that offers loans to companies that otherwise can’t find credit.
(ISTOCKPHOTO)

'Revenue-based financing' arrives in Canada

Burgeoning Canadian companies have a new way to quickly get the cash they need.

Instead of borrowing from the bank or issuing shares to a private equity backer, small but growing companies can now finance themselves by selling royalty streams.

In exchange for a small chunk of their revenues, typically three to four per cent, interested companies can get cash up front to help finance acquisitions or capital spending.