MERAMAK

Consumer Financing

What is Meramak Finance?

Meramak™ offers customer financing options to help businesses take advantage of theirotherwise untapped business potential.

By handling a full range of consumer credit risks and offering custom tailored rate plans for a wide spectrum of industries, Meramak™ is sure to be a natural fit for many business environments.

Whether providing customers with a delivered product or a future service, we can help businesses reach their revenue goals. Meramak™ online merchant center includes an easy-to-use application and fast credit decisioning modules which require less work. No hand-written forms, no faxing, no waiting to receive the decision. Customers get approved within minutes in most cases, sales get closed right on the spot. The Meramak Finance program enable businesses to provide an affordable monthly payment plan to prime, near-prime and sub-prime consumers at a cost less than traditional lenders.

We are an aggregator of over 20 lenders that are all contained on one platform which helps more consumers get approved at the best payment plans available. We match the right lenders with our merchants based on the needs of their business and clients.

Meramak Finance simply offers more approvals at better rates.

CURREN

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ITYThe Time Is Now.

We are in a global credit crisis.

• The average US consumer credit score is below prime at 680.

• Banks, under pressure from shareholders and regulators, are unable to service the needs of near-prime or sub-prime borrowers and, therefore, cannot effectively offer traditional unsecured, installment or revolving credit products.

• Less than 10% of consumers use cash or check for purchases over $1,000. •32% of consumers don’t own a credit card and 68% of US credit card holders are within less than 5% of their available credit limit.

• The Meramak Finance program enable businesses to provide an affordable monthly payment plan to prime, near-prime and sub-prime consumers at costs less than traditional lenders.

MERAMAK FINANCE

How the Program Works

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CEHow It Works

1. Become a Participating MerchantThe business completes the merchant application. Tells us about their company and the types of products they sell and finance. The business is considered “approved” when at least one of the installment lenders is assigned to the merchant (aka Waterfall). Once approved the merchant is given access to our loan processing system and is contacted by our office to schedule an introduction to the program and training .

2. Merchant Interview and TrainingWithin the first few days of approval, We will conduct a Merchant Interview to allow our financing specialists to determine or confirm their understanding of the program and if any additional programs are pertinent to their particular vertical market and their individual needs.

3. Submit Customer Credit ApplicationsBusinesses submit contracts into the loan processing system and can track the applications through each step of the process. Our system is accessible online and through mobile applications that work on any computer, tablet or smart phone. Businesses can be on-the-go, generating new business, while tracking every contract submitted. This step is where new merchants are connected with our network of financing partners and loan facilitators.

Continued…

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4. It’s All About Options – The WaterfallThe consumer finance application is automatically submitted to the merchant’s Primary finance company. Should the Primary decline the contract, it will automatically be forwarded to all of the 2nd-Look finance companies the merchant has been matched with. Only once all options have been exhausted will the contract be declined.

5. Approved!The loan processing system online and mobile application monitors all bids on submitted contracts and allows merchants to approve the ones that best fit their needs. It is a simple and easy way for merchants to maintain control of their financed business. This is the most upfront and transparent way for businesses to handle their financing needs.

6. Get Funded!Typically takes an average of 72 hours for funds to clear merchant or borrowers bank once loan docs are completed and executed.

FINANCE PROGRAMS

Consumer Financing

MERAM

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Installment credit is a loan for the full price of a product or service based on repayment at fixed intervals over a certain period of time. Upon installment contract approval, the consumer is granted physical possession or service of the product while agreeing on a set payment plan to pay off the item in full.

Depending on the program, with each loan the Borrower will have:• Annual Percentage Rate (APR) – as low as 5.99%• Term Of Agreement – 24 to 120 Months• Closing Fee – Anywhere from 0- 5%. FHA Home Improvement 10%

Merchant will have:• Enrollment Fee• Monthly Membership

Whether the lender funds the borrower or the merchant depends on the program for which the merchant is enrolled.

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SMarkets

The Meramak Finance program is designed for those businesses whose customers are frequently faced with unexpected expenditures and are unable to pay for them, in full, at the time, or for customers who want to purchase products on an installment payment plan.

Merchants want and need to provide products and services required by the customer however, the customer cannot immediately afford them. This may force the merchant to lose valuable sales or leave an unpaid and often times, uncollectable balance on their books. The Meramak Finance program allows merchants to serve the needs of the customer, preserve the sale and receive immediate payment.

We cater to very large and robust segments that require prime, near-prime and sub-prime consumer financing solutions.

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SInstallment Credit – Four Solutions

There are ultimately four different types of programs that are available to a merchant depending on their needs and qualifications.

1. PRIME – Direct To Borrower Funding for Credit Scores 640+

2. PRIME – Direct To Merchant Funding Credit Scores 620+

3. Sub-PRIME Down to 550 FICO

4. NO CREDIT REQUIRED

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SInstallment Credit – PRIME DIRECT TO BORROWER

Enrollment Fee: $799 (1 Enrollment Fee for access to all applicable programs)Monthly Fee: $299 (1 Monthly Fee for access to all applicable programs)Discount Rate: 3.99% (paid by consumer)

BENEFITS: Merchant can receive funds prior to completing work or service. All legal business types accepted.

Increased funding amounts.Provides lower APR’s to borrowers.

Funding: Borrower is funded directly, our loan facilitators work with borrower to pay merchant. Up to $100,000.

Discount Fee: Only charged to merchant after funds have been spent with merchant. Only billed against invoice amount.

OBJECTION: What if they do not spend the money at my location?ANSWER: It is the same as if they were paying by cash or credit card but at

least now they have an option and wont walk away from the sale. You would also have a signed purchase agreement.

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SInstallment Credit – PRIME DIRECT TO MERCHANT

Included in program if desired

BENEFITS: Same As Cash Options (SAC). Fixed APR of 14.99%.90 Day SAC 5.99% 180 Day SAC 7.99%360 Day SAC 9.99% 540 Day SAC 15.99%

Funding: Merchant is funded directly. Up to $25,000.Discount Fee: Deducted from Funding.

OBJECTION: Why do I have to provide 1 year financials?ANSWER: The banks are making immediate at the point of sale credit

decisions which allows you to close the sale while your customer is present. The program is a great one available to the right businesses (see target industry list).

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SInstallment Credit – PRIME DIRECT TO MERCHANT – APPROVED INDUSTRIES

Medical: Elective Cosmetic Procedure/SurgeryDental LASIK

Retail/Service: ART ATV’s (Non-titledBaby Furniture BBQ GrillsBicycles BilliardsDecorationElectronicsFitness Equipment FirearmsFireplaces Funeral (At-Need)Furniture GeneratorsGolf Clubs Golf CartsInterior Design JewelryLighting Fixtures Mattresses (Luxury or Specialized Only)Music Instruments Patio FurniturePets PhotographyRugs ScootersSpas Sports EquipmentStair Lifts StovesTools VeterinaryWatches

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SInstallment Credit – Sub-Prime Down to 550 FICO

Optional with Prime Program at no additional monthly fee.

BENEFITS: More Approvals, more product sold.

Funding: Merchant is funded directly. The maximum funding is between $7,500 - 15,000 depending on the merchant industry type.

Discount Fee: Deducted from Funding.

OBJECTION: Why is the discount rate so high?ANSWER: Sub-prime borrower default rates range between 20-30% and our

loans are unsecured. The discount rate mitigates the liability for the lender.

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SInstallment Credit – EASYPAY No Credit Score Required

Stand Alone Program, not a part of “Waterfall”Monthly Fee: includedDiscount Rate: 2.99% (FIXED) comes with 90 Days Same As Cash (SAC)

BENEFITS: More Approvals Low Discount Rate90 Days SAC No Paystubs required

Funding: Merchant is funded directly. Typically $7,500 is the maximum funding amount for medical and $4000 for other industries.

Discount Fee: Deducted from Funding.

OBJECTION: Why is the APR so high between 29% - 199%?ANSWER: The EasyPay program is designed to approve consumers that

most lenders would not accept due to poor credit or lack of credit.

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SInstallment Credit – EASYPAY No Credit Score Required – APPROVED INDUSTRIES

Consumer Goods: Furniture (Indoor & Outdoor) Bedding/MattressJewelry AppliancesElectronics Exercise EquipmentSports Equipment PowersportsBicycles Pets & Pet SuppliesMusical Instruments Power Tools & AccessoriesOutdoor & Survival Gear Car Stereo & AlarmsRims & Tires Veterinary

Automotive Service: Auto Repair Auto BodyBrakes Transmission RepairTune-Ups MaintenanceInsurance Deductibles

Elective Medical Procedures: Cosmetic Dentistry Dental ImplantsOrthodontics LASIK / VisionPlastic Surgery Med Spa ServicesTattoo Removal Healthcare Devices

Restricted: Chiropractic Funeral Bariatric Weight LossFuture Services Vocational / Education Legal ServicesBail Bonds Auto Financing TravelPawn Shops Medical Tourism eCommerceFirearms Used Items Products Sold Via Telemarketing

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SInstallment Credit – EASYPAY No Credit Score Required – DEMOGRAPHICS

EasyPay is available in the following US States:

Alaska Kentucky PennsylvaniaArizona Missouri South DakotaCalifornia Nevada UtahDelaware New Hampshire VirginiaIdaho New Mexico WashingtonIllinois North Dakota WisconsinKansas Oregon

MERAMAK FINANCE

Merchant Payout Rate

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The Merchant Payout Rate

The merchant payout rate is the percentage of the loan that is paid to the business. The percentage held back is referred to as the “discount” or the “buy down”.

Businesses can factor the discounted payout rate into the actual amount of the bill for their products and services thereby passing the cost on to the customer.

The merchant payout rate is based on each applicants risk factor and can be as high as 95% for a low risk borrower or as low as 55% for a high risk borrower.

The merchant payout rates are necessary to offset loan losses and keep the program available and affordable to businesses.

We recommend that participating merchants quote a monthly payment range to their financing customers and consider the costs for financing. By providing an instant cash discount for paying with cash they can create margin to offer financing and offset their costs.

It is imperative that as part of your sales pitch, the merchant understands the buy down and how it effects the profit margins of his products and services.

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The Merchant Payout Rate – Payment Calculator

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The Merchant Payout Rate – Payment Estimator Card

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Overcoming the Subprime Credit Buydown Objection

The biggest obstacle that a sales office will face is responding to a potential merchant’s objection to the buydown.As we discussed earlier in the presentation, the buydown (or discount) is the fee that the lender charges the contractor to procure the loan. This fee is expressed as a percentage of the loan and can range from 5% to 35% of the loan amount.It is imperative that the merchants have a solid understanding of discounting so the buydown MUST be disclosed by the salesperson during the sales process. The most effective way to respond to this objection is to point out the benefits of the program and the associated costs for the merchant to enjoy those benefits.

Merchant Benefits

Cost of Benefits

Increased closing ratioIncreased revenueMore clientsHappier clientsHigher level of value

Cash flowNo Accounts Receivables RiskNo Accounts Receivables ExpensesSpecial offer financingIncreased marketing effectiveness

Origination / Application FeesMonthly membership Fees

Discounting / Buydown

MERAMAK FINANCE

Our Loan Processing Portal

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Main Portal Page

Merchant are able to submit applications and easily check the progress of their submissions through our merchant portal interface. Business owners can pick from promotions available to their customers as well as communicate with the lenders, processing center and customers.

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Online Borrower Application

The online borrower application can be linked to the merchant’s website or sent out to prospective customers via email or text message. Completed applications are immediately viewable within the applications tab of the merchant portal.

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Detailed Finance Information

Applicant information can be viewed or edited. Tasks can be created, offers reviewed and accepted, documents can be uploaded to lenders and notes and messages can be created, all quickly and easily through the merchant portal.

THANK YOU

Meramak Finance2271 Hwy 33 Suite 106Hamilton NJ 08690

Toll-free: 800-597-3140Local: 732-431-4447Fax: 732-431-2730Email: info@meracard.com