Merchant Cash Advance HT1053

AmeriMerchant What is a Merchant Cash Advance Merchant Cash Advance Benefits Traditional Bank Loan vs Merchant Cash Advance Cost Comparisons Why Is Now A Good Time To Offer Working Capital Required Documentation Merchants To Target About AmeriMerchant NEW Product - Main Street Business Loan Preview Contact

What Is A Merchant Cash Advance A solution for a merchant to obtain working capital by selling their future credit card receivables at a discount to a purchaser (a MCA provider) MCA provider purchases $Y worth of a merchant’s future credit card receivables today for $X and gets repaid by taking $Z of a merchant’s future credit card sales Example: - Merchant processes $100,000 in V/MC per month - AmeriMerchant gives merchant $75,000 advance - Business pays back $95,000-$100,000 at 15% holdback

What Is A Merchant Cash Advance Continued Benefits to Merchant Higher approval rates than traditional finance products Most small businesses don’t have fixed assets to pledge Many merchants have a hard time obtaining loans from banks No fixed monthly payments Works with their cash flow Repayment is made by delivering a fixed % of a merchant’s future credit card sales to the purchaser (the MCA Provider) No personal guarantee

Merchant Cash Advance Benefits Obtain high quality merchants Average processing volume $20,000 - $22,000/month Typical low risk processing industries: Restaurants Card present environments “Merchant Acquirer Friendly” SIC Codes Acquire merchants without selling on price and avoid bankcard margin compression Lower merchant attrition 70% of merchants renew for additional working capital Uses for a Merchant Cash Advance Advertising, Expansion, Partner Buyout, Cash-flow, Renovation etc.

Traditional Bank Loan vs Merchant Cash Advance Fixed time period Interest rate Fixed monthly payment Collateral required (personal guarantee) Typically 2-3 years of operating history required Decline rates than can exceed 90% Decision process can be weeks or months Funding time can be weeks or months Merchant can miss opportunities Often requires FICO scores of 700 and above MERCHANT CASH ADVANCE (MCA) No fixed time period No interest rate / set cost /sale - $X for $Y No monthly minimum payment No collateral required for an advance No personal guarantee Only 60 days of operating history required Approvals as fast as 24 hours Much higher approval rates compared to traditional bank loans Funds available to the merchant on average within 7 days

MCA Cost Comparison MCA’s are more expensive than traditional bank loan products, however, there are many outweighing benefits: No personal guarantee No real estate / assets to pledge Higher approval rates Less paperwork involved than a bank loan Funds are available Less expensive compared to certain non-bank financing Transactions that give up equity Subordinated debt that involves warrants, etc. A MCA is always less expensive than doing nothing

Now Is The Perfect Time To Offer Working Capital Upcoming Holiday Season Holiday sales can amount to 50%-75% of many retailer’s annual sales Retailers need working capital now for inventory / advertising / marketing for the holiday season Retailers need to avoid “empty shelves” at all cost Banks lending requirements are still stringent with small businesses With banks being tighter than ever, we are seeing better credit worthy applicants applying for a merchant cash advance For these more established businesses with better credit, we can offer a lower cost product than standard merchant cash advance rates

Required Documentation AmeriMerchant working capital application Last 4 months credit card processing statements 2 months if only in business for 2 months Most recent bank statement Driver’s license Proof of business ownership Blank, voided check

Merchants To Target Process at least $5,000 per month in Visa/MasterCard sales from their customers Credit cards processed daily Multiple daily transactions Average transaction size $500 or less Immediate delivery of goods and/or services to the customer (no future delivery) Cards are swiped in person at place of business Brick and mortar locations Merchant owns their inventory (no drop shipping) Batches out their terminal at least 10-12 times per month

Merchants To Target (Cont.) Examples: Restaurants Nightclubs/Bars Clothing Stores Day Spas Hair & Nail Salons Liquor Stores Hotels/Motels Laundromats/Dry Cleaners Pet Supplies/Grooming Book Stores Music Stores Tobacco/Cigar shops Shoes/Accessories Gift/Stationary Shops Coffee Shops Eye Glass Stores Medical Offices Hosiery Stores Luggage Stores Beauty Shops Movie Theaters Sporting Goods Stores Florists Gourmet/Specialty Food Stores

About AmeriMerchant Leading provider of merchant cash advances One of the oldest and most reputable providers in the merchant cash advance industry Founded in 2002, 80+ employees Headquartered in New York City Founding member of North American Merchant Advance Association Provides up to $1,000,000 in working capital Advanced real-time reporting system Can advance against all card types Fast approvals

Main Street Business Loan Preview Coming Soon – Main Street Business Loans We are excited to introduce a new loan product aimed at “Main Street Businesses” that are unable to receive a traditional bank loan. This product will be offered to businesses that typically would not fit the business type criteria for a merchant cash advance. Features: Fixed daily payments Merchant does not need to accept credit cards Only need to be in business 1 year Considerably less documentation needed than a bank loan Future delivery accepted High approval rates

Contact Andrew Altschuler Vice President, Business Development (800) 267-3790 aaltschuler@amerimerchant.com