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Kristof Anderson-Tsang: Hi Everybody! I'm Kristof, Head
of Business Loans for LoanMe. And with us, we got Jason

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Chalarca one of our Account Managers. And we also Jack
Malone, another one of our Account Managers. So today,

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we wanted to have a session with you guys talking about
keeping it real. And really open it up. So if there are

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any questions you guys have, for us here among me the
tough questions, the hard questions, we're happy to

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answer it for you. There is a link on the bottom that
Gigi helped me out. You said there's a don't do the

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chat.

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Moderator: Correct, it says, Q&A, so you can click on
the Q&A and ask your question in there.

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Speakers: Okay, so click on the Q&A, type any questions
you guys have for us. In the meantime, we'll get

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started just with a quick high level overview of
LoanMe, kind of what we offer. And then we also have

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some questions here that these guys hear all the time
from their partners. And we can dive into some of

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those, if we don't get questions from the audience. So
LoanMe, we are a term loan lender, so we don't offer

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MCA products, we only offer true term loans, monthly
payments, 10 year terms, and our product range, the

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loan amounts go from 3,500 - 250,000. Let these guys
kind of piggyback off that.

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Jack Malone: Okay, starting with the prime business
loan, which is our top tier product, this is we don't

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find theseto be our bread and butter. But these ranges,
as you can see from 75K, all the way up to 250K. And

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these are for the get the A paper. And they were
slightly stricter on the requirements here for this

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category of loans, you mentioned us have a stronger
credit profile. So we're looking for the FICO of at

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least 700. And into the homeowner and their
corresponding equity in the home with the amount of

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multiple sub 200K and a 200K of equity in their home.

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Kristof Anderson-Tsang: Jack is just going over our
kind of our fine business loan products, which is our

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main product. So we for LoanMe what we offer, we can
work with any for profit business, ok. Minimum time

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businesses, just 90 days, business bank account,
obviously, a 25% minimum ownership requirement for the

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person applying for the loan. And so it's a very broad
kind of open box, monthly payment term loan, obviously,

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with a longer term that gives these business owners
much lower more affordable minimum monthly payments.

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And especially during a time like this, I think that
really kind of helps them out. Where they don't have

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you know, daily payments, things coming out, you know,
and some monthly payment term loan, it's a great

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option, you know, during these uncertain times. But,
um, let's get into some questions, guys. Okay, so some

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questions that you guys, you know, get some tough
questions that you get from your brokers all the time,

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how does LoanMe different from MCA? You know, why as a
broker? Why would I bring my borrower to your company

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vs. MCA? So, Jason, when she has that?

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Jason Chalarca: Yeah, great question. I think we we get
that question a lot. You know, I think the main thing

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would be just monthly payments, the flexibility that we
offer to clients, you know, compared to what an MCA or

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really any other lender can offer, just the monthly
payments, you know, it's going to keep more capital in

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their pocket, instead of the client having to worry
about those dailies and weeklies having to, you know,

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just automatically coming out. With us they only have
to worry about a minimum monthly payment. So I think

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that's the main thing. And then, you know, in most
cases, not all, it is also a rate issue, you know, so,

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you know, although our rates and we'll get into that a
little bit further on, because that also comes up a

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lot. But although our rates may seem a little bit more
higher, when you really break it down, compare apples

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to apples, we're gonna save you a lot.

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Kristof Anderson-Tsang: So, yeah, an earlier session
today. You know, they're talking about how business

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owners are wanting shorter term loans right now,
especially given the uncertainty of the economic

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environment. And, you know, I would agree with that, to
a certain extent in the in the sense that, you know, I

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think they would also want them to remove flexibility.
So, by us having a 10 year term loan product that gives

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the business owners that much lower more affordable
minimum monthly payments, and if they only intend on

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keeping the loan for, say, two or three months, you
know, they can pay us off early interest stops accruing

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because this is a true term loan product. And so that,
you know, really kind of helps them, instead of, you

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know, only being offered these daily and weekly
payments, you know, they have the option with LoanMe to

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be able to, you know, get a monthly payment. And yeah,
really control the total cost of capital. Right, based

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on early pan behavior, I say, I think that's kind of
the main point of our product, is it gives the control

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back to that business owner, to be able to, you know,
do what's best for them. And every, every business

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owners, we know, their situations are different, their
products are different, what they sell, you know, the

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way that they earn the revenue, you know, how
frequently they get paid as well. I think that, that

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really just changes per business. And so, you know,
this product really helps them kind of, you know, not

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feel the squeeze, if you will have any daily payments.
Yeah. Okay, so another thing that we get asked all the

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time is, in terms of, you know, hey, we heard you guys
can do consolidations, ensuring consolidation. So Jack,

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what you sell, tell everybody kind of how that works
with us?

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Jack Malone: Yes, we do. We do offer true
consolidations. And they're particularly valuable,

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because we only look at the last 90 days. So that means
a lot of these merchants, you know, come to us and

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they're stacked up, and we have several loans that
we're looking at. And a lot of these are often taken

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out beyond the 90 days, 100 days even. And what the
important thing for us is, you know, we got to factor

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them into our underwriting calculation here, because
they're taken out today. So just means that we can

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consolidate all the loans, that they've got all these
days, all the weeklies into one monthly payment, and

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generally save them a lot of money, get this drawing on
the cash flow with one monthly payment.

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Kristof Anderson-Tsang: Absolutely. And I think I think
the main point there is that, you know, a true

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consolidation in the sense where we don't require them
to net anything, okay, they can, if they qualify for

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$100,000 loan with LoanMe, you know, we can pay off up
to 100,000, and turn them daily weekly payments into a

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monthly payment. So I think that's another big thing.
But kind of sidestep to that, too. You know, one of the

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things that a lot of our brokers really enjoyed really
like is the fact that we're able to offer business

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owners a lot larger loan size compared to the offers
that they get in the traditional, you know, MCA market.

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And, you know, they're always baffled, because, you
know, for example, we funded one last week, we funded a

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guy $100,000. And their average monthly deposits was
only 20,000. And so what's the question that we always

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get from from our brokers for some like that?

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Jack Malone: How do we get 100K when there is only
20,000? How do you do that?

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Kristof Anderson-Tsang: Right? So how are we able to
that?

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Jason Chalarca: Well, we focus on the average daily
balance, so we only go back 90 days. And now our main,

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our biggest thing is, we look to see them last 90 days,
how much money are you keeping in the account on a day

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by day basis, so we really don't care as to how much
money you know, monthly, you're bringing in. I mean,

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our minimum monthly is they need to average 30 - 3500
done the last three months. So I mean, that just goes

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back to you know, why LoanMe that just shows one of the
one of the differences as to how we look at files here,

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how we are going to underwrite that file and really
determine, you know, that loan size. on our end, again,

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going back to that point, you know, someone with a
$20,000, monthly inflow, you know, they'll get

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qualified for 70K, 100K, because on our end, again,
we're only focusing on that average daily balance. So

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as long as you know, their average daily balance within
the last 90 days, is steady. And it shows on our end

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that, you know, they can make that minimum monthly
payment with us, then they're golden with us.

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Kristof Anderson-Tsang: Yeah, and one thing I would say
one thing, I'm bad at that, Jason is that it's not that

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we don't care guys about their money, obviously, you
know, a business needs to have money coming in in order

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to be able to afford to make the payments right in
nonpregnant situation that kind of gets them in

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trouble. But I think the focus and the point of what
we're trying to say is that, you know, we focus more on

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the average and daily balances to determine if they can
afford our monthly payment. And because the monthly

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payment is stretched out amortized over 10 years, our
average term is nine years across our entire portfolio.

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So we're not one of these lenders that says, Oh, we
offer terms up to 10 years and everybody gets, you

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know, 18-24 months. In fact, most businesses get a 10
year term with the LoanMe product and so You know, by

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focusing on the average ending daily balance that tells
us, you know, they can afford a monthly payment. And

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that's what dictates the loan amount, that's how kind
of the calculation, it's looked at, in a very different

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light, right, you take a merchant doing $10,000 a month
in revenue, and most merchant cash advance companies

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are going to give that business owner a maximum of 8 to
$10,000 advance, right? With loan before we can

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actually fund that guy. And we do quite often 50, 60,
70, $80,000 you know, if they can afford that minimum

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monthly payments, okay. And so, you know, that's,
that's one of the good things, but the things that that

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I think are different from what a lot of brokers are
used to in our industry. And that's where some of the

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misconceptions come about with LoanMe. Oh, you know,
LoanMe is just, you know, very expensive, okay, so

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let's get into that, right, we're talking about real
talk, okay, our loan sizes, we're talking about range

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from 3,500 to 250,000. But our interest rates, okay,
and we do charge, you know, interest rates, this is not

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an advanced, it's not a fact rate, but our interest
rates range from 14.9% to 159%. And so a lot of people

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say, you know, do you have to tell the borrower about
the interest rate, you know, that turns them off, and,

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you know, so on and so forth. And what I would say to
them is, look, we're in the business to be transparent,

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and to get a business owner to understand that it's not
cheap money. And if we're being honest, right, as an

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industry, this is called alternative lending for a
reason. And that reason is that these people are, you

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know, for the most part, either unbankable or they want
to get these funds put in their bank account,

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immediately, right, as an immediate need, man with that
there comes a cost, right? And that's just the truth of

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the matter. So, you know, to answer ISOs questions,
when they say, you know, do you have to go over the

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interest rate, you know, with the borrower with the
business owner? The answer, quite frankly, is yes.

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Because that's transparent. And that's what you know,
businesses deserve. But I think more importantly, it's

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not necessarily about the rate, but it's about the
total cost of capital. And it's about how a business

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owner uses these funds responsibly in order to make our
loan work for them. Right. And so, you know, that's

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what we focus on, right? Our agents focus on educating
these business owners on early repayments, okay, the

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only borrower loan for 10 days, you're paying 10 days
worth of interest, right? You know, and so there is

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definitely a benefit to repaying our loan early. There
isn't a fixed cost associated, like, you know, merchant

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cash advance simply has a fixed cost, because that fact
rate is sort of, you know, baked in there, the

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repayment amount. with LoanMeI, it's kind of the
opposite, interest accrues. And so if you borrowed for

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10 days, you pay 10 days worth of interest, you borrow
for two months, you pay two months worth of interest,

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or we're going to give you an extraordinary long term,
so that you have the ability, you know, to have that

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cash flow working for you, and your payments, not going
to your first payment not going to be due the very next

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day. And so, you know, there's obviously good and bad
with, you know, a lot of products. And I think what

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we're trying to say is, this product is a very
complementary product in the space, right? It's great

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for an ISO, you know, to offer a multitude of different
things, right, offer lines of credit products offer,

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MCA products offer SBAs, but also offer, you know, a
product like ours, which is a longer term, term loan

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product, and, you know, we take care of a lot of a lot
of the stuff for them, you know, when you have a

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business owner looking for more funds than they, you
know, more money than they bring in each month, you

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know, the first place a lot of our ISOs look is LoanMe,
right, for that for that exact reason.

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Jason Chalarca: And I would say just to piggyback off
of that, I mean, if, especially if they have an exit

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strategy, if these clients, you know, they need the
money today, construction company, they need supplies,

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they need to finish up the job and they know, X amount
of months, right, they're going to be able to pay us

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off sooner than later. I mean, it's a it's ideal for
them. They know that they'll be paying us off again a

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lot sooner than that 10 years or a few years, and
they're going to save tons of money on interest. So

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that interest rate that you all see online or you hear
from us or you see it on a on a promissory note. It can

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be scary. But if they have an exit strategy, and they
know they're going to pay us off, right, so a lot

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sooner than later. It's perfect.

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Jack Malone: We're often used as a bridge. Well, they'd
like some for that longer term like the SBA loan, right

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or something more traditional people, you know, local
merchants.

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Kristof Anderson-Tsang: Yeah, and that's that's a great
thing. You know, great takeaway for the audience, I

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think is to understand that the LoanMe product is not a
product for business owner should take and keep for 10

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years, it's a product where somebody should use it as a
bridge loan as emergency funds or something where they

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can take the money turn a profit and pay us off as soon
as possible. We work often with you know, not just

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merchant cash advance brokers, but we also work with
equipment leasing brokers, you know, where they need to

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complete their equipment leasing transaction, that
business owner cannot have, you know, other 10 to 15%

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down payment to, to finish something, you know,
complete that equipment leasing transaction, they come

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to us get funded, oftentimes the same day, because we
can fund it as soon as two hours, they take those

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funds, and they complete their transaction and getting
the business on understand, hey, pay LoanMe off first.

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Right? And so this is a great product to really kind of
help people do that. So we, uh, you know, I want to

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open it up, I know, we've we've kind of said a lot
about kind of what we do and what our product is, and

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kind of the way that the industry in our brokers should
kind of look at our product and how to use it. We've

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got about nine minutes left. And what I want to do is
kind of open up to any questions that you know, you

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guys. You know, want us to answer from you guys
directly. And I think Gigi is going to see if there's

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any of those questions and kind of read those questions
to us.

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Moderator: So if anybody wants, we do have about 15
minutes left for this panel. So you can just send in

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your Q&A, right now, and I'm happy to read him.

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Speakers: All right, GiGi, as people are typing those
out, we're gonna we're gonna kind of read some more

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questions that we get from our ISOs. Okay. And, you
know, feel free to kind of, you know, give us some of

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the live questions, you know, that will kind of fill it
in with some of this content here. So one of the ones

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that, you know, we've gotten from a lot of our brokers,
especially during times like this is, you know, what

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have you guys done in terms of, you know, offering loan
modification, production payment plans for existing

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clients, that have been hurt by the covid environment?
And, you know, if we're being honest, right, and this

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is kind of what this panel is about right now is just
being honest and open and transparent. It has affected,

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you know, a lot of businesses, the United States,
obviously, and that's no secret. But I think how you

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treat your customers and how you treat your employees
during a time like this really speaks volumes as to the

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type of company that you are, the kind of focus that
you have, and more importantly, are you going to be

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around? And are you going to be there, you know, for
the long term? And so, you know, the answer to that,

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for us as a company is yes, we've, you know, had a
furlough a couple people, not many, but we haven't laid

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anybody off during  that time. And so, you know, we're
slowly starting to bring back, you know, those that are

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on furlough. In terms of customers, what we have done
for them is if they've called in and said, Hey, you

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know, money able to make some payments, you know,
initially when this whole thing started, middle of

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March, was it right? We paused our funding March 16, we
resumed it again, May 6. Okay, so we are lending right

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now. During that time, when we paused it, you know,
people would call in, hey, I can't make a payment, we

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understand their situation, we asked them, if they
could make any payments, you know, even a small portion

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of that payment during that time. And we would collect
that, and then we let them know is we're going to bring

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their account current, you know, with that small
payment, whatever it was at the time, and we actually

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made their next two payments for them. So as a company,
you know, the executive team, myself included, you

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know, what we did personally was, we took a reduction
in pay. And so we use, you know, some of that those

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funds that we saved there to pay monthly payments for
customers and bring them current, we didn't roll it

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into the back end of that loan, what we did was we
actually made those payments for them. And so, you

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know, some of the reactions our customer service team
got from the customers, just that sigh of relief. In an

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uncertain time, like this, I think really made went
went a long way. And so, you know, wanted to kind of

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share that you guys, you know, let you guys and
everybody says we're all together, but at the end of

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the day, you know, when it comes down to brass tacks
and comes back down to, you know, are these merchants

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making their payments, and that does affect the
livelihoods of, you know, the people that we employ, we

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employ about 250 people here at LoanMe. So, you know,
we're not some small 500 company. Most of you guys, you

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know, have seen us on bank statements, you know, out
there in the marketplace. So You know, we're here to

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stay. And we're here to just do the right things by
customers. And so a lot of the misconceptions that I

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see about LoanMe, that I Hear about LoanMe is oh, you
know, lonely, that's the really expensive monthly

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payment term loan company and their loan sharks, and
they, you know, and the reality is, you know, it's

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quite the opposite. I think, you know, we have to price
in certain things, you know, just like anybody does

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with their business model. But at the end of the day,
it's really about doing what's right for, you know, the

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community, our brokers, our customers, the business
owners, you know, and that's what's important.

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Moderator: Great. Um, so we do have a question that
came in, and it is, what is the minimum credit score

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that you can lend to?

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Speakers: So the minimum credit score, we actually
don't have one, right? Okay. In the past, it was at

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500, minimum 500. What I would say, though, is any
business owner, with a FICO score under 600, I will

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tell you that we'll take a look at it, we'll run
credit, right, we'll take a look at the business. But

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that only makes up about 5% of our portfolio. Okay. So
while we don't have a hard guideline on minimum FICO,

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we do have, you know, numbers to show that 600 plus
really gets, you know, a better look than those under

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600.

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[cross-talk]

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Kristof Anderson-Tsang: And again, you know, kind of
sidestep from that, too, is that we only look at 25%

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ownership. So let's say you have four business owners
that own a business, we can take an application, each

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person, each person can fall into one of our set tiers
and buckets, which correlate with a set interest rate

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set loan term, and set products. We obviously can't
fund all four owners for the same business, but we can

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find the best one, right, the person who's got the
highest credit score, so a lot of our current ISOs. And

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brokers understand this. They you know, make sure
they're sending over, you know, the best credit worthy

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individual.

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Jason Chalarca: Great question.

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Kristof Anderson-Tsang: Yeah. All right. What else we
got here? What are some other questions you guys get

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that you will probably want to address?

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Jack Malone: And say the most important one to brokers
perspective and to get us would be about the

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commission.

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Kristof Anderson-Tsang: Commissions. All right. Let's
start with commissions. Okay, so as a term loan five

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lender, what we offer is we offer five points on the
net funding. Okay. So for example, let's say it's

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$100,000 loan that business owners have 10% of
origination, aka for use round numbers. So the net

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funding for the business owner is 90,000. Right? In
that example, five points on 90,000. Right, that's 4500

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for a commision, we ISOs all the time saying, Oh, you
only pay five points, you know, I get 10 points here

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from, you know, XYZ funder. I get, you know, 15 points
here. And what we'd say to that is, yeah, but you're

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going to get a smaller loan, right? So take, for
example, business are doing $20,000 in revenue, right,

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that MCA company, that other funder lender might be
giving you 10 or 15 points on 20,000, right? Whereas

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we're giving you five on, you know, this example we're
using on 90, okay, so you can do the math there. And

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you can see that the commissions is larger, it actually
might be double the commission. So I would urge our

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ISOs and those listening as brokers, you know, viewing
this to understand that it's not always about the

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points, it's not always about, you know, I could make
10 or 15 points, it's about what is being done for the

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customer first, and then you figure out your
commission. Right. And you'll find with us that

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oftentimes, that means long does give you a larger
commission than that 10 to 15 point funder.

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Jack Malone: Absolutely.

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Kristof Anderson-Tsang: How we doing on time GiGi.

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Moderator: We have six minutes left.

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Kristof Anderson-Tsang: Okay. Any other questions from
the audience?

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Moderator: I don't see any in the queue at the moment,
but we still have an audience.

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Speakers: Okay, great. We We definitely got some here
that have come in, you know, throughout the day and

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things like that. So let's pick another one. That
sounds good.

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Jason Chalarca: Let's see. Other lenders let me pitch
loan myself. Why can I not with you guys? So we get

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that a lot. Me and Jack, we hear that a lot. Yeah, from
partners.

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Speakers: [cross-talk]

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Moderator: I'm sorry to interrupt, Kristof, we actually
just got a few questions coming in.

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Speakers: All right, let's, let's go to your questions.

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Moderator: Okay. So we'll start by are you adding any
additional states soon?

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Kristof Anderson-Tsang: Good question. So we do get
that question a lot as well. Right. So we currently

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today lend in 30. States, okay. 30 out of the 50
states. And what I would say with that is, we are

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always looking to add additional states, but as a
lender and a loan product, we have to be aware of those

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lending laws user recaps in certain states. And so it's
not really a choice, I would say, for us to say, Okay,

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I want to lend in Texas or New York, as we all know,
New York has an interest rate cap rate a lot of the for

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as interest rate cap, Texas as interest rate cap. And
so, you know, the answer is it's really going to be up

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to those states and those lending laws, you know, as
those things change over time, we're closely

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monitoring. Okay, I will tell you that we are looking
at entering in another an additional state, I'll save

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that for when we actually get there, because so we're
gonna be in 31, here shortly. But other than that,

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that's the reason behind the limited amount of states.
Okay. And that's probably Yeah, one of the biggest

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gripes our ISOs have is, you know, I got a perfect
file, but it's in a state that you don't lend it.

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Right. And then, you know, there's nothing we can do at
that point. You know, want to make sure we're following

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all the rules and laws and guidelines and those those
states. So.

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Moderator: Great. Next question is, so how does the
monthly product work? And then right, after that, we

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have one more.

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Kristof Anderson-Tsang: Okay. How does the monthly
product work? Is there was there a follow up portion to

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that question? In what sense? So, monthly product works
in a way that business owners make a monthly payment?

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Moderator: So, yes, so do the owners besides the 25%
have to sign the application?

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Speakers: No, they do not. Okay, so the owner that is
applying for the loan, okay, does sign a personal

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guarantee? And so they're responsible, you know, you
know, personally, for the repayment alone, these loans

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that we offer are also unsecured. Okay, so these are
unsecured term loans. There's, you know, no UCC is

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going to be filed or regular working capital product.
We do file a blanket UCC on our prime business on

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products. But that's because those interest rates range
from 14.9% to 24.9%, those are our lowest interest rate

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products. And so you know, we have to have some
security there for that type of product, but on

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everything else, there is no security.

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Moderator: Great, um, and another is confirming that it
is a hard credit pull on the front side.

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Kristof Anderson-Tsang: That was before. Okay, and so
we don't we no longer do a hard credit pull, right on

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the front end. We actually just I was actually talking
to you today about this right. Before we get started.

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We just kind of launched a new CRM system, right? So
everything Salesforce base, it's really going to help

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you know our brokers kind of get connected with their
systems. So our old system, yes, did a hard credit pull

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upfront. Our new system will allow for a soft credit
poll. And then prior to being submitted to underwriting

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right for underwriter take a look at that. That's when
we will do a hard credit pull. So it might almost be

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Bang, bang, or it does seem like it's a hard credit
pull and only are critical. But the reality is we do a

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soft credit pull. Now if the borrower wants to move
forward at that point and submit the documents for

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underwriting to take a look at. We will then do a hard
pull.

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Moderator: Great, and another question came in. So
sorry, they came late. But what documents do you need?

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I'm assuming you only do you do only term loans and not
MCA?

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Kristof Anderson-Tsang: That's correct. At this time,
we are only doing term loans. Okay, so no MCA products.

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And so in terms of documentation, what we're looking
for is 90 days transaction history. And we'll do that

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you know, via decision logic pull. If decision logic is
not compatible with the Bank of business owners using,

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then we will look at, you know 90 days worth of bank
statements and transaction history so the most

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immediate 90 days prior driver's license And yeah,
voided check, we're not going to need it's not a hard

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requirement, you know, if it comes through with
decision logic, but in some cases, we'll need a voided

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check. So it's really just, you know, valid ID and 90
days bank statements for us to kind of take a look at

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average daily balance. Great questions, guys. Okay, I
know we're running out of time here. Want to be

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respectful of time, I know Rapid going to be next. And
so what I want to do is invite you guys to take a look

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at our website, contact us if you have any questions
about our products. You know, these guys are great. And

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we also we have four other account managers. You know,
he's couldn't fit everybody in here for social

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distancing reasons. But yeah, I just wanted to, you
know, let you guys take a look at our website,

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loanmebusiness.com. It's our new website. These are old
logos. So you guys might see some new logos. Don't be

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scared away. We're kind of transition to you know, new
CRM system, new logos, refresh, take a look,

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everything's going to be blue. So Loanmebusiness.com.
And then if you need to reach out to these guys the

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phone number, I think it's, it's incorrect on the
virtual deBanked, I'm sorry, the virtual Broker Fair

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site right now. So just want to clarify that the number
is 949-535-7798. Okay, so 949-535-7798. Okay. Thank you

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guys. And very, very good show. Guys. I want to thank
the whole deBanked team, Sean, Gigi, Janene, all you

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guys. It's been fantastic, given the circumstances, you
know, kudos to you guys. It's been a wonderful day.

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Moderator: Thank you so much, and we really appreciate
having LoanMe as always.

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Speakers: You guys. Take care