PROCEED BUSINESS LOAN^SM
Promnetwork Services, L.L.C.
a wholly-owned subsidiary of
Promontory Interfinancial Network

| Program Benefits |  Market Profile | Program Contacts | More |

BACKGROUND

Promontory Interfinancial Network, LLC ("Promontory") provides creative solutions that help banks and other financial institutions compete more effectively.  Promontory's current offering includes three services— CDARS^® and IND^®, and Proceed Business Loan^SM.  As a member of the Promontory Network, your bank can use the Proceed Business Loan to:

• Retain existing relationships that might otherwise be lost to alternative funding providers.
• Attract new customers and, frequently, the checking account, credit card processing, and other bank products and services that often come with a new business relationship.
• Help customers build their businesses and the credit history needed to qualify for traditional loans in the future.
• Keep loan risk off your bank's balance sheet.
• Improve your bank's profitability.

DESCRIPTION

Proceed Business Loan is a turnkey loan service that bridges the gap between traditional bank loans and factoring or merchant cash advance alternatives.  It is ideal for small, healthy businesses with solid customer bases.  Loans can be used to open new locations, remodel, purchase new equipment, expand inventory, or address unexpected business opportunities.  Lending decisions are based on proprietary scoring models that focus on business performance, such as cash flow and other factors, rather than just the personal credit history of the business owner.  To be eligible for a Proceed loan, a small business must have been operating for at least one year.  All loans have a term of 12 months.

This service enables banks to earn fee income (125-200 basis points per funded loan) by providing small business customers that do not qualify for their traditional loans with access to risk-adjusted, fixed-rate, fixed-term loans of up to $100,000.  Banks offering Proceed Business Loan do not incur any lending risk or underwriting costs. This makes it an ideal solution for those that want to meet heightened loan demand without adding to their balance sheets.

Operationally this service is easy to use. Bankers merely refer pre-qualified customers to a Proceed Loan Specialist.  The Proceed Loan Specialist handles the paperwork and communicates the lending decision back to your institution.

Turnaround times are quick.  Bankers and their customers are notified of lending decisions 2-3 business days after a complete application is submitted and, if the loan is approved, funds are usually deposited into a customer's business bank account within 7 business days. 

Repayments occur through a Daily Direct Debit^SM from the customer's business bank account.  Collections are at set amounts, and the process is automated to make things convenient for the borrower

Only members of the Promontory Network can offer customers access to Proceed Business Loan. 


PROGRAM BENEFITS

A Risk-Adjusted, Fixed-Interest Rate—Proceed Business Loan provides working capital for small businesses that typically would not qualify for traditional bank loans. The loan rate is capped to ensure risk-adjusted rates are fair and affordable. Total interest paid as a percentage of the total loan is often as little as one-third of the interest charged by alternative funding sources, such as merchant cash advance providers.

Daily, Fixed Payments—Small, fixed amounts are charged daily to make payments more manageable.  Deductions occur automatically from a customer's business bank account to reduce the risk of missing a monthly loan payment and accruing late fees.

One-Year Term—A one-year time frame for repayment best aligns many small business expenses that would be funded by a Proceed loan with the revenue generated from those expenses.

Low Fees—There are no origination or monthly fees.

Online Access to Loan Status—Borrowers can access an online portal with a secure ID and password to check their balances and interest paid at any time.

MARKET PROFILE

Institutions of all sizes can use Proceed Business Loan.  The service is particularly attractive to medium- and small- sized banks that serve large numbers of small business customers. 

To learn more about Proceed Business Loan, please contact Promontory's Treasury Desk at (866)-776-6426 or treasury_desk@promnetwork.com or click here.

PROGRAM CONTACTS

Promnetwork Services, L.L.C.
a wholly-owned subsidiary of
Promontory Interfinancial Network, L.L.C
1515 North Courthouse Road, Suite 800
Arlington, VA  22201.
Contact:  Steve Kinner  Tel:  (703) 292-3445
E-mail: skinner@promnetwork.com
Web Site:  www.promnetwork.com

CAB CONTACT PERSON

Lisa Gold Schier   Tel: (202) 663-5098

Proceed Business Loan is a service mark of On Deck Capital, Inc.  Loans, which are underwritten by On Deck Capital, Inc., currently are not available to banks or their customers residing in certain states, including California, Nevada, North Dakota, South Dakota, and Vermont. They are also not available to businesses that operate in certain Restricted Industries.