PRIVATE BULK LOAN FINANCING PROGRAM

Our Private Bulk Loan Financing program provides a simple and efficient approach for funding asset-backed loan portfolios such as Consumer Term Note Receivables.

Similar to Securitization, but without a formal trust, Private Bulk Loan Financing is a limited recourse financing structure available to Organizations or their Finance Company subsidiaries that allow them to borrow against the future cash flow of their funded loan portfolio. The facility is secured by the funded portfolio, which usually includes the loan agreements, underlying loan assets, and the derived cash flow stream.

The program is unique in that our Partners, continue to retain a direct relationship with their Consumers, including Collecting of past due Loan payments, negotiating additional add-on, upgrade or new sales and program pricing.

The customized structure of the Private Bulk Loan Financing facility provides our Partners the flexibility to meet their financial objectives and the advantage of:

• Access to a diversified pool of capital that includes large financial institutional investors
• Limited recourse
• Ability to "Lock in" profits at the time of funding
• Lower fees and no formal trust arrangement

In our capacity, our Team provides, among other services, ongoing portfolio management and administration, including loan portfolio and loan funding due diligence, security maintenance, credit and loan portfolio report review, advance funding and payment administration.

Our Team has successfully assisted financial institutions and major corporations by providing structured financial products to the equipment, vehicle and consumer leasing, lending and finance industries. Our team has the insight and expertise to tailor the deal structure that will work best for you.

We provide an alternative to traditional sources of lending that have previously only been available to large Organizations and Finance companies. In addition, our solutions offer the opportunity for reduced financing costs and improve financial statement covenants.

With a commitment to creating of superior financial solution and delivering results, we have an enviable track record of building successful partnerships with all of our business partners. Find out what Crelogix can do for you.

PRIVATE PLACEMENT SECURITIZATION

Securitization is a sale of receivables between two parties. One of the parties (the “Seller”) is the company selling the receivables and the other is a securitization vehicle (e.g. Crelogix), an entity that buys the receivables.

After the initial sale, the Buyer uses the collections received on the receivables (which it now owns) to pay the interest and principal on the debt obligations that it has issued. Once the obligations of the structure have been satisfied, all remaining collections on the receivables are then returned to the Seller.

If the Seller uses the proceeds on the sale of receivables to retire its debt, the interest costs on that debt are then essentially replaced by the interest costs of the Buyer because all cash flows over and above those required to satisfy the Buyers obligations are returned to the Seller.

Benefits of Securitization

New Source of Funds
For companies seeking an alternative to a traditional funding source, a sale of receivables can achieve this.

Cash Flow
By utilizing the Net Present Value cash flow model as the base amount for the securitization advance, the result is a strong cash flow that normally exceeds the Net Book Value of the securitized portfolio. Also, the securitization eliminates any negative cash flow through the term of the lease.

Simple Structure
Through accessing the private capital markets, the securitization structure has been simplified making it easier to understand and more importantly, simple to administer. Typically, the upfront costs associated with this type of program are less than establishing a traditional bank facility, and the need for rating agencies on a deal by deal basis are not required as we do not access the public conduit market. Our teams experience with these transactions provides Sellers with an alternative that is proven.

Low Cost Financing
This securitization structure allows the low cost of funds achieved by the structure to be passed on to the Seller. The credit quality of the receivables purchased by Crelogix is enhanced through the structure of the securitization transaction.

Off Balance Sheet Financing
Removing the receivables from the balance sheet and using the proceeds from this sale to pay down any debt on the balance sheet allows for capital tax savings. There are other financial statement covenants that may be positively impacted from this form of financing.

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