Merchant Cash Advance & Small Business Loan Program Changing - PowerPoint PPT Presentation

Merchant Cash Advance & Small Business Loan Program Changing the converstion

Mind Blowing Reality: An independent merchant survey reported that 50% of the respondents would be willing to switch merchant service providers to gain access to capital.

RapidAdvance Quick Facts FOUNDED 2005 HEADQUARTERS Bethesda, MD RapidAdvance is a leading provider of financing solutions to COMPANY small and medium sized businesses in the U.S. FUNDINGS > $1B deployed to deserving businesses Rapid offers two financing solutions, Merchant Cash PRODUCTS Advance (“MCA”) and Small Business Loans (“SBL”), OWNERSHIP Rockbridge Growth Equity 165 EMPLOYEES

Member of the Quicken Loans Family of Companies Note: This slide only represents a small sample of the full Family of Companies

What we do We support electronic payment processors, merchant acquirers, ISOs and their merchants by providing easy access to capital through an expanded suite of funding solutions.

Current Climate for Small Business Financing • Addressable market - est 9 million U.S. small businesses • Pent up demand for capital • Approximately 37% will apply for financing this year • Of applicants, only about 40% are approved • Result: 60% are denied or only partially funded • 2 in 5 said denial limited their expansion Source: Small Business Credit Survey, Federal Reserve Bank of New York, US Census Bureau

Typical Customer Challenges Customer has immediate funding needs: Unexpected Cash flow Expansion Inventory opportunity timing or growth build-up • Timing is everything – usually need turnaround within 7 days • Majority of applicants want < 100K • Minimal paperwork desired • Last few years have left them discouraged about getting credit • Harvard Business School Report notes small business loans on bank balance sheets are down 20% since the financial crisis

Targeted Merchants Healthcare Retail cont’d Chiropractors 8041 Dentists 8021 Pharmacies 5912 Optometrists 8042 Grocery Stores Physicians 8043 Toys/Hobby Shop 5945 Veterinarians 742 Pet Store 5945 Lodging Hotel/Motel 7011 Restaurant Drinking Places 5813 Service Quick Service Restaurant 5814 Barber Shops 7241 Restaurant 5812 Dry Cleaning/Laundry 7210 Bakeries 5461 Hair/Nail/Skin Care 7231 Retail Party Supply Stores 5943 Health Spa 7298 Bicycle Shops 5940 Beauty Shops 7230 Dry Cleaners 7210 Automotive Repair 7500 Candy Stores 5441 Children's Shoes 5661 Children's Clothing 5641 Cosmetics/Perfumes 5977 Men & Women Clothing 5691 Family Clothing 5651 Food/Fruit/Gourmet 5499 Footwear 5139 Hardware 5251 Juniors Clothing 5641 Liquor Stores 5921 Meat/Seafood 5421 ` Optical Center 8044

Lending Solutions RapidAdvance provides a fast, frictionless and easy financing alternative for businesses that have an immediate need for capital, may not meet traditional financing guidelines, or have no availability on an existing facility. HOW? LESS RESTRICTIVE LENDING GUIDELINES Financing amounts of $5,000 to $1,000,000  Streamlined process allows for funding in 3 to 5 days  Terms of 3 to 18 months  Renewals paid at 100%  Minimal paperwork required  Minimum FICO scores of 500  Bankruptcy acceptable if discharged for at least 1 year  Tax Liens acceptable with payment plan in good standing 

RapidAdvance Financing Products Merchant Cash Advance Multiple products allows the Small Business Loan business advisor to match the business need with the appropriate financing solution Healthcare Advance

Merchant Cash Advance (MCA) MCA is a purchase of a merchant’s future credit card receipts. It is not a loan.  Creative commercial financing:  No fixed payments  Payback only received through a small percentage of future credit card sales  Typical split % is 12% - 20% of merchant’s daily batches  Transactions up to $500,000 funded in as little as 3 days!  Rule of thumb: funds 1x Visa/MasterCard monthly volume Minimum MCA Requirements:  Minimum time in business: 1 year  $5,000 per month in processing volume

Small Business Loan Ideal for business owners seeking fixed, predictable payments  Transactions up to $1MM funded in as little as 3 days!  Repayment is through an ACH of merchant’s bank account  Rule of thumb: funds up to 90% of monthly gross revenue Minimum Loan Requirements:  Minimum time in business: 2 years  Monthly revenue $10,000

Healthcare Advance HCA is a purchase of a merchant’s future health insurance receivables & credit card receipts.  Creative financing for healthcare professionals:  No fixed payments  Transactions up to $500,000 funded in as little as 3 days!  Payback only received through future credit card & insurance receivables  Re-payment is made via a “lockbox”  Rule of thumb: funds up to 1x monthly insurance receivables & Visa/MasterCard volume HCA Funding Criteria:  Minimum time in business: 1 year  Minimum monthly insurance deposits $10,000

Application to Funding in 3-5 Days UNDERWRITING & FUNDING SUBMISSION Pre-Qual Submission Signed 1-page Application Quotes Presented to Merchant Merchant Selects Quote / Signs Contract Last 3 Months’ Business Bank Statements & CC Confirmatory Underwriting Processing Statements Merchant Funded

Change the Conversation Accessing capital when you need it is one of the most challenging &  frustrating responsibilities of a business owner today. - If you had access to an additional $10k, $15k, $20k, $25k within the next 3 days could you find an area in your business to use it? - If you received $10k in your account on Thursday where would you use that in your business? - Preparing for your busy season takes capital. What would you do with an extra $15k? - What opportunities would you take advantage of if you had the capital? - In a few minutes we can determine how much you could qualify for. What is your average monthly Visa & MasterCard credit card processing volume?

Working Capital helps you Sell Change the conversation to easy  Strengthen customer relationships & increase retention  Great tool to WIN back lost customers  Create “stickiness”  Protect residuals  Differentiate yourself  Build loyalty and referrals  - 75% of merchants borrow a second round of funding - average merchant borrows 3 times over 1.5 years Increase merchant ACTIVATIONS and create a NEW REVENUE STREAM 

Working Capital Helps Residual income protected Protect your future, build goodwill and loyalty Be the go to person Become a trusted advisor Provide merchants access to capital when Merchants won’t begin to traditional lenders say “ NO ” search for alternatives Offer flexibility Provide merchants unrestricted use of funds

The RapidAdvance Difference Client experience is our Top Priority! We make accessing capital EASY- FAST- FRICTIONLESS- RELIABLE o New & Meaningful Revenue Stream for the ISO/ISA o RA will close deals o 75% of clients borrow again o Avg. client completes 3 transactions over a 1.5 years o Transactions range from $5,000 - $1,000,000 o Same day approvals! o Merchants funded in 3-5 days – start to finish o Terms extend from 3 months – 18 months (product specific) o A full range of products o

The Formula Capital = Stickiness = Retention = Residual Protection

Your ISO Today Your ISO Rival ISOs Merchant Services Merchant Services Terminals/POS Terminals/POS Value-Added Value-Added Products Products

Powered by RapidAdvance Your ISO Your ISO Rival ISOs

RapidAdvance National Partners Office Depot offers financing to its customers through a co- branding partnership, marketed by Office Depot as “Office Depot Business Financing, Powered by RapidAdvance.” ENACT Systems & RapidAdvance partnered to offer ENACT’s energy project contractors “Quick Working Capital”. ENACT is a national leader of providing solar energy alternatives. National Small Business Association (NSBA) partners with RapidAdvance to provide capital, education and business growth opportunities to all NSBA members.

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THANK YOU Jim Fink Director, Strategic Partnerships Email: jfink@rapidadvance.com Tel: 240-233-4092