The SME Term Loan (12 & 24 month) Brochure

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1 The SME Term Loan (12 & 24 month) Brochure The SME term loan is a mortgage style, 12 or 24 month, amortising loan. This type of loan is ideal for businesses that are looking for working or growth capital. An added advantage is that there are no early repayment fees on these loans.

2 How Does The RainFin Credit Marketplace Work? RainFin uses technology to operate a credit marketplace at a lower cost than traditional loan programmes, passing the savings onto Borrowers in the form of competitive rates, and to Investors in the form of attractive risk-adjusted returns The Borrower Business Borrowers apply online, are verified and riskgraded. The benefits to the borrower Low fees Competitive interest rates Secured and unsecured credit The RainFin Credit Marketplace We leverage online data and technology to complete a risk assessment and determine a credit rating. A combination of manual and algorithmic moderation is then performed to qualify loan requests: only qualified loans are published on the marketplace. RainFin marketplace performs Loan admin Identity verification Credit grading Affordability check Collection and disbursement of funds Reporting The Investor Investors (Institutional and Retail) place orders to purchase Participation Notes, which are directly linked to the economic interest on loans. A single offer is presented to the Borrower. Upon acceptance, the respective orders are concluded and Participation Notes are issued. The benefits to the Investor Competitive returns and fixed income type earnings Low fees Full control over portfolio FSB and NCR compliance

3 What Are The Benefits of The SME Term Loan? Benefits to Businesses Lower cost to capital Potentially lower cost of capital due to a number of participating Investors. Lower Fees Lower fees as a result of replacing banks and asset managers with technology intermediation Access to a number of Investors Loans are presented to a number of Investors which increases the probability of a Borrower being funded. Benefits to Investors Access to new asset class Investors have access to a new high yielding, low risk asset class i.e. Alternative Credit Reduced Risk Investors can participate in a number of loans, thereby diversifying their portfolio and reducing risk exposure NCR & FSB Compliance RainFin is registered with the NCR as a credit provider and with the FSB in regard to financial service regulations

4 What Type of Business Would Qualify For SME Loans? Businesses with a South African bank account Businesses that have proof of transactional history South African registered businesses Businesses that have been operating for 24 months or more Businesses that have an annual turnover of over R1 million OR An asset value of more than R1 million

5 What Information and Documentation is Needed? Documents Needed: Bank statements for the last 3 months BEE certificate (if registered) Latest Management Accounts Financial statements for the past 2 years Personal CDD* (to be supplied for all directors/members): Information Needed: Business name and registration number address and ID numbers of all active directors/members Bank account details for the business Monthly income & expenses Gross asset value of the business Number of employees (full and part time) Total liabilities of the business Start date of the business Business sector Business outline, including social pages and about us Accountant info (your accountant will be expected to upload your financial statements Personal identification (copy of id) Proof of personal address (not older than 3 months) Business CDD*: Close Corporation (cc) Proof of business address (not older than 3 months) Registration Certificate/Founding Statement (CK1) Amended Registration Certificate/Founding Statement (CK2/CK2A/COR18.1) Or Latest CIPC Disclosure Certificate PTY (Ltd) Latest Registration Certificate (COR14.3/COR39/COR44 or other) Or Latest CIPC Disclosure Certificate Proof of business address (not older than 3 months) * Customer due diligence (CDD) refers to the knowledge that an accountable institution has about its client and the institution s understanding of the business that the client is conducting with it.

6 What Do Businesses Have To Do To Participate? Create A Profile Complete the quick registration. Obtain board resolution from the directors of the business. Once authorised, the business is registered. 6 Customise Loan Terms Upload bank statement and invite your accountant to upload financial statements. Upload your management accounts. Customise the loan terms. 5 Upload CDD Information Submit the CDD documentation for the directors and the business. View full requirements on: /About/CDD 4 Loan Administration As the agent, RainFin collects payments and distributes to investors according to their participation agreement. Where required, debt recovery process is initiated. Loan Gets Funded When your loan closes on the marketplace, you will receive an offer, and on acceptance, sign a loan agreement online. Funds are transferred to the Borrower s nominated account. Loan Gets Published Once CDD is submitted, the moderation team will review your information. If successful, the loan gets published on the marketplace.

7 How Do Investors Participate? Create Profile Investor creates a profile and verifies themselves by submission of CDD documents. View requirements: /About/CDD 6 Find Loans on Marketplace Investor navigates to either the Credit Marketplace or the Trading Credit Marketplace and find loans that match their appetite for risk. 5 Transfer Funds Investor transfers funds to their RainFin account. Funds are kept in a Trust via a 3 rd Party Investment Management account in the name of the Investor. 4 Collections As the agent, RainFin collects payments and distributes to Investors according to their participation agreement. Where required, debt recovery process is initiated. Track performance Investors can monitor the performance of loans on their My RainFin Account. Economic Interests in the Loan can be sold on our Trading Credit Marketplace. Place Orders and Start Earning Investors place orders to purchase Participation Notes, which are directly linked to the Economic Interest on loans. Funds are reserved until the borrower accepted. RainFin will notify the investor if their order is successfully concluded.

8 Who Do I Contact To Find Out More? Contact us: T: E: info@rainfin.com W: RainFin is an Authorised Financial Services Provider (FSP45756) and Registered Credit Provider (NCRCP 5587)