[CpepeWBL]

couple questions here. Only 3 really:

1) Too many returned items / negative days-------An advance doesn’t always fix this problem, if it doesn’t then isn’t the ISO just making the merchant lose their property for now cents on the dollar to you?
2) Consolidations since we do not have a net cash minimum rule for the client------makes sense
3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)------owning a property doesn’t make a merchant be able to afford more, tough to again put someone in a scenario where they will most likely default and lose the only thing they had4) No minimum number of deposits required------makes sense
5) Open to lending to almost every industry since we have collateral------makes sense
6) Larger deals are our specialty 350K - 2 million------makes sense
7) Looking for a lower interest only daily or weekly payment (especially popular on our consolidations) ------makes sense
8) No minimum balance requirements----I still fail to see how if a merchant keeps a 100 daily balance why having property now makes them afford 600.00 a day as an example
9) In business as little as 3 months ok as long as deposits are 25K or more per month------makes sense

See below for answers to the questions:

1) Too many returned items / negative days-------An advance doesn’t always fix this problem, if it doesn’t then isn’t the ISO just making the merchant lose their property for now cents on the dollar to you? - I agree, however we do extensive research and diligence as to why they are going negative often, and ask alot of questions during the merchant interview. Regardless of the collateral if underwriting feels its not in the best interest of the client to take the money, of course we aren't forcing them into it. If the use of proceeds makes sense, we can verify it (to the best of our ability), and the funds will help them get to a place where the returned items / negative days decrease then our proceeds went to good use[/B]

3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)------owning a property doesn’t make a merchant be able to afford more, tough to again put someone in a scenario where they will most likely default and lose the only thing they had - Let's be clear here, just because we have real estate doesn't mean we are lending larger amounts without caring about their ability to repay. It's actually quite the opposite as we care very much how they are going to pay us back and what their plan is. One recent example was a merchant who had 6 advances totaling 140K in balances and paying out 2,800 a day. She was depositing 110K a month, and gave us a 365K residential property free and clear. We qualified her under our interest only program for 180K and paid off all her advances. She netted around 40K in cash, paid off everyone in full, and lowered her daily payment from 2,800 down to around 600 a day which was her interest only daily payment. This saved her around 2,200 a day, and the merchant had a verified plan on how they were going to pay the full balance back after 6 months. As you can imagine she couldn't WAIT to signed the closing docs. Yes I agree owning real estate doesn't mean they can afford more, but in this scenario it enabled her to save alot of money per day and possibly save her business[/B]

8) No minimum balance requirements----I still fail to see how if a merchant keeps a 100 daily balance why having property now makes them afford 600.00 a day as an example - Again we still are careful with the amount we approve the merchants for if they have alot of pass through income, or keep low balances, to make sure they can afford their obligations, but if the real estate collateral is strong it won't stop us from making a loan because of low balances

Hope this helped a bit!

Chris Pepe
Vice President
World Business Lenders
120 West 45th Street Floor 29
New York, NY 10036
Tel + 1 212 293 8210
email: cpepe@wbl.com