SME Guide

Welcome to Catalyst!

This guide will help you access capital for your business and manage your funding relationship with investors.

Step 1: Create Your SME Account

1. Visit https://sme.catalyst.com
2. Click “Register”
3. Fill in your details:
   • Email address
   • Password
   • Full name
   • Business name
   • Phone number
   • Select “SME” as your role
4. Verify your email

Step 2: Complete Your Profile

A strong profile increases trust and investment likelihood:

Business Information

• Business Name: Your registered/trading name
• Industry: Fashion, Food, Technology, etc.
• Location: City/state
• Year Started: When you launched
• Description: What you sell, your story (2-3 paragraphs)

Verification Documents

Upload clear photos/scans of:

• Government-issued ID (NIN, Driver’s License, Passport)
• Business Registration (if registered)
• Bank Account Statement (last 3 months)
• Shop/office photos

Tip: Complete profiles with verification get 40% more investor interest!

Step 3: Build Your Trust Score

Your trust score (0-1,000 points) determines investment attractiveness:

Platform Trust (300 pts)

• Complete KYC verification: +100 pts
• Upload business documents: +75 pts
• Verify bank account: +50 pts
• Complete profile fully: +40 pts
• Platform tenure (time): +35 pts

Marketplace Performance (350 pts)

• Connect existing online sales (Instagram, WhatsApp Business)
• Link marketplace accounts (Jumia, Konga)
• Demonstrate sales volume and fulfillment

Customer Feedback (150 pts)

• Import reviews from existing platforms
• Encourage customers to leave feedback
• Respond quickly to inquiries

Financial History (200 pts)

• Successfully complete funding cycles
• Report profits accurately
• Make payments on time

New to business? Consider the Human Trust pathway with Agent sponsorship (see Step 4).

Step 4: Choose Your Path

Path A: Performance Trust

Best if you have:

• Existing sales history (Instagram, WhatsApp, marketplace)
• Customer reviews and testimonials
• Proven track record (even if informal)

Action: Connect your business accounts to import transaction data and build your score automatically.

Path B: Human Trust (Agent Sponsorship)

Best if you:

• Have a solid business plan but no sales yet
• Are a youth entrepreneur starting out
• Lack formal business history

Action: Find an Agent to sponsor you:

1. Click “Find Agents”
2. Browse Agents in your area/industry
3. Submit sponsorship request with your business plan
4. If accepted, Agent provides trust boost (150-200 pts)

Agent Benefits: They earn 5% commission on your profits, so they’re motivated to support your success!

Step 5: Create a Funding Request

1. Click “Create Funding Request”
2. Fill in details:

Basic Information

• Purpose: What do you need funding for?
  • Inventory purchase
  • Equipment
  • Working capital
  • Business expansion
• Amount: How much? (₦100,000 - ₦5,000,000)
• Term Length: 3, 6, or 12 months
• Profit Share %: What % of profits will you share? (15-30% typical)

Detailed Description

Explain:

• Current business situation
• Why you need this funding
• How you’ll use the money
• Expected outcomes
• Timeline for results

Financial Projections

Estimate monthly revenues and profits:

• Current monthly revenue: ₦X
• Expected revenue with funding: ₦Y
• Estimated monthly profit: ₦Z

Tip: Be realistic! Investors appreciate honest projections over overly optimistic ones.

Accepted Currencies

Choose which currencies you’ll accept:

• ☑️ Nigerian Naira (NGN)
• ☑️ Cardano (ADA)
• ☑️ USDM Stablecoin

Most SMEs accept all three to maximize investor pool.

3. Submit for review
4. Admin reviews within 1-3 business days
5. If approved, your request goes live!

Step 6: Attract Investors

Once live, investors can discover and fund your request:

Tips to Attract Investment:

1. Update your profile regularly with business news
2. Respond to investor questions quickly
3. Share your funding request on social media
4. Provide evidence of business operations (photos, testimonials)
5. Engage with the community (comment on forums, share insights)

Partial Funding

Investors can contribute any amount. Your request shows:

• Target: ₦500,000
• Funded: ₦200,000 (40%)
• Remaining: ₦300,000

Once 100% funded, status changes to APPROVED and funds release to your wallet!

Step 7: Receive Your Funds

When fully funded:

1. You receive email notification
2. Funds appear in your wallet
3. Payment schedule generates automatically
4. You can withdraw to bank account:
   • Navigate to “Wallet” → “Withdraw”
   • Enter bank details
   • Funds arrive in 1-24 hours

For Crypto Investments: ADA/USDM goes to your Cardano wallet directly from escrow smart contract.

Step 8: Use Funds Wisely

Your success = investor returns + your growth!

Best Practices:

• Use funds as stated in your funding request
• Keep records of purchases/expenses
• Track sales and profits carefully
• Communicate with investors about progress
• Reinvest profits for continued growth

Step 9: Report Profits

At each installment due date:

1. You’ll receive reminder notification
2. Navigate to “My Funding” → “Report Profit”
3. Enter total profits for the period
4. System calculates 4-Way Split automatically:
   • Investors get their profit share %
   • You keep the majority (60-70%)
   • Agent gets 5% commission (if sponsored)
   • Platform takes service fee (16-18%)

Example: ₦1M in Profits

Assume 20% profit share, ₦500K funded, Agent sponsored:

• Investors: ₦180,000 (18%)
• You (SME): ₦600,000 (60%)
• Agent: ₦40,000 (4%)
• Platform: ₦162,000 (16.2%)
• Risk Fund: ₦18,000 (1.8%)

You keep ₦600,000 to reinvest and grow!

5. Funds automatically distribute from your wallet
6. Process repeats next installment

Step 10: Complete Your Term

After all installments paid:

1. Funding request marks “COMPLETED”
2. Your Financial History score increases
3. You can create new funding requests with:
   • Higher amounts
   • Better terms
   • Faster approval

Successful completion = easier future funding!

Managing Challenges

What if profits are lower than expected?

Be honest! Report actual profits. The profit-sharing model means:

• Lower profits = lower payments (investors understand business ups/downs)
• Better to report accurately than default
• Communicate reasons (seasonal slump, unexpected costs)

What if you can’t pay an installment?

Contact support immediately:

• Explain the situation
• Propose payment plan
• Work with platform to find solutions
• Don’t ghost investors!

Missing payments hurts your Financial History score but can be recovered with good communication.

Growing Your Business

Build Your Reputation

• Complete funding cycles successfully
• Report accurate profits consistently
• Maintain high customer satisfaction
• Engage with the Catalyst community

Scale Your Operations

• Start with small funding requests (₦100-500K)
• Prove your business model
• Request larger amounts as you grow
• Eventually become an Agent and sponsor others!

Best Performers

Top SMEs enjoy:

• Featured placement in marketplace
• Access to larger investment pools
• Better terms (lower profit share %)
• Potential partnerships and mentorship

Getting Help

• Email: sme-support@catalyst.com
• WhatsApp: +234-XXX-XXX-XXXX
• Live Chat: 9am-6pm WAT
• SME Community: Join our Telegram group

Success Stories

“Catalyst helped me grow from ₦50K monthly revenue to ₦500K in 6 months. The investors believed in my fashion business when banks wouldn’t.” - Amara, Lagos

“With ₦300K funding, I bought equipment that doubled my production capacity. Now I’m training 3 apprentices!” - Chidi, Enugu

Next Steps

Ready to access capital for your business? Create your SME account now and start building your profile!

Remember: Success on Catalyst comes from honesty, consistent communication, and treating investor funds like the trust they represent. Good luck! 🚀