Borrowing Against Marketable Securities

Brian Linkbrian@InSourceCapital.com818-783-7462

About InSource Founded 2001 Focus on Business Financing Specialty in Franchise, Equipment Financing,

Start-Up, Expansion, Working Capital

Securities Based Financing:A New Lending Option

What it is, and isn’t The Sales Process The Lending Process

What It Is, and Isn’t! Securities-Based Financing

Not credit or income based Funds available in as few as 7 to 10 business days 70 to 90% of Portfolio Value Rates as low as 1.6%

What It Is, and Isn’t Don’t Confuse with Similar Options

Margin Loans Non-Recourse Stock Loans Transfer of Title Stock Loans

How are we different?

Why not a Margin Loan? Advance Rates

They are limited to 50% We do 70% to 90%

Calls They need to maintain that 50% ratio We do not

Why not a Non-Recourse Loan These products have been on the market for over

a decade Title to the underlying securities is transferred to

the Lender What if the Lender goes out of business? As of July 2010, most transfer-of-title loans are

considered sales by the IRS

The Sales Process

Rule #1: Know your Client…. What do they want to do? What resources do they have?

The Sales Process

1. Complete Questionnaire2. Get Copies of Recent Account Statements3. Deliver to Brian Link

Our Lending ProcessClient completes Questionnaire.

Provides Statement for review

Term Sheet prepared and reviewed with Client

Statement is reviewed. Client ID verified

Our Lending ProcessClient introduced to Brokerage firm

New account established and transfer commenced

(NO TITLE TRANSFER)

Loan Paperwork prepared and reviewed

Funds available typically within 48 hours

The BasicsInterest rates – 1.6% to 5.50% Fixed and variable rates

available

Minimum/maximum line amounts - Minimum line amount is approximately $55,000, with no set maximum.

The Basics

Loan to Value – From 70% to 90%

Documentation – Limited

Fast Closing – From receipt of the Client’s statement to cash in hand can take place in as few as 7-10 days

What QualifiesWhat Doesn’t Qualify Private company stocks Restricted stocks Stocks with little or no trading volume Real Estate Medium-term notes (MTNs) Standby Letters of Credit (SBLCs) Some foreign securities 401K - Managed pension plans

What Does U.S. and selected non-U.S. stocks Mutual Funds U.S. Treasury notes/bills/strips U.S. government agency bonds Municipal and corporate bonds Selected bank CDs Fannie Mae, Ginnie Mae CMO Exchange-Traded Funds (ETFs) Publically traded REITs Unit Investment Trusts Selected bank CDs

Most Common Uses

New Business Financing Down Payments for Other Financing Purchase of Existing Business or Real Estate Bridge Loans REO/Fix and Flip

For More Information, Call

Brian LinkInSource Capital Services

brian@InSourceCapital.com818-783-7462