1. Leveraging Data to Increase Efficiency and
Create Alternative Revenue Streams
ETA Transact’14
April 8, 2014
Las Vegas

2. Presenter Biographies
Ramit Arora (Moderator),
Co-Founder and President, Biz2Credit
Ramit Arora heads the company’s operations and handles larger bank and client relationships. He
also oversees all strategic web initiatives for the company. Ramit previously worked with a Fortune
500 consulting company as a Finance Solutions Architect. He has over 10 years of experience in
the financial services space, including commercial finance and financial services risk management
developed during his stint at Citibank.
1

3. Guru Charan (Moderator),
VP of Business Development and Strategy, Biz2Credit
Guru Charan is responsible for developing the pipeline of potential borrowers and lenders, and
setting the strategic direction of Biz2Credit. He started his career as an engineer at Intel Corp and
then worked in investment banking at Lehman Brothers/Barclays and BofA/Merrill Lynch. He later
moved to the corp. dev. and strategy group at Discover Financials where he successfully worked
on the acquisitions of LendingTree, HLC and Student Loans Corp He then headed the corporate
M&A and BD groups at H&R Block. Guru has a BA from Bangalore University, an MS in Computer
Science from Western Michigan University and an MBA from The Darden School, University of
Virginia.
Presenter Biographies
2

4. Jeremy Brown,
CEO, Rapid Financial Services (dba RapidAdvance)
Jeremy Brown calls on his 20+ years of first-hand management experience running small and mid-
sized businesses across service industries including retail, construction and technology, to deliver
funding solutions to small businesses throughout North America. Prior to joining RapidAdvance,
Jeremy served as the COO of a national audiovisual service company. He also served as CEO of a
commercial construction contractor and worked as the President of a retail computer company.
Jeremy is a CPA and holds a degree in Economics from Duke University.
Presenter Biographies
3

5. Randy Clark,
SVP of Marketing, Mercury Payments
Randy Clark joined Mercury in February 2013 to lead overall dealer, developer and merchant
marketing. He has more than 20 years of marketing leadership experience with top-tier venture-
capital backed, private-equity owned and $1B+ public companies. Prior to Mercury, Randy was
CMO of UC4 Software and Platform Computing which he helped transform into high-growth $100M
businesses respectively. Randy has a BA from the University of Pennsylvania and received his
MBA from Harvard Business School.
Presenter Biographies
4

6. Brendan Ross,
President, Direct Lending Investments
Brendan Ross is President of Direct Lending Investments, the General Partner of a short-term, high-
yield, small business loan fund. Prior to his work in direct lending and as a financial advisor,
Brendan was a turnaround CEO. He ran a number of companies, including Reserve America, the
world’s largest outdoor recreation reservation company, and Fanfare Media Works, a $50 million
provider of in-supermarket advertising on register tape and shopping carts. Brendan graduated from
Brown University. He received Magna and Phi Beta Kappa and was awarded Honors in Sociology.
Presenter Biographies
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7. Introduction: Opportunities and
Challenges Facing Merchant Processors
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8. Key Trends
Transaction volumes will continue growth trajectory
• Small and medium size merchants represent largest net revenues opportunity
• Adoption will put pressure on transaction fees
New entrants have increased competitive dynamics
• Disruptive ISOs (square, Groupon)
• Specialized VARs (restaurants, doctors)
• Entrances of new POS competition
Transaction Processing Industry Trends
7

9. Source: Nilson Report, 2003-
2008; McKinsey Payments
Practice.
1 Includes C2B and B2B point-
of-sale and bill pay spend using
card instruments
Transaction Processing Industry Trends
Merchant payment
services Dynamics
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10. Merchant Acquirers: Status Quo Economics
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Challenges:
• Merchant Attrition due to increase in substitutes and competitive pricing
• Downward pressure on pricing for renewals
Growth Opportunities:
• Same store sales growth (increasing card volume)
• Re-Pricing actions allow merchants to create new sales
• Cross selling additional products like are key to increasing revenue growth
• New Sales – Attracting new customers required to offset existing customer churn

11. Merchant Acquirers: Status Quo Economics
Source: McKinsey
Payments Practice.
Driving Merchant Services
and digital commerce:
Findings from McKinsey’s
2012 small business
acquiring Panel, March
2013..
100
(5-15)
(5-15) +5-10
85-95
+5-15
+1-5
+1-10
95-120
EXAMPLE MERCHANT ACQUIRER ANNUAL RUN-
RATE ECONOMICS
In Percent
1
0

12. Cross Selling Opportunities
Financial
Point of Sale
(POS)
Social –
Local-Mobile
(SoLoMo)
Additional
Services
• New POS
Technology
(Mobile, Payment, AC
H)
• Consumer lending
products
• Drive new promotions
and partnerships
• Drive new revenue
channels
(mobile, local, referral
s)
• Loyalty programs and
dashboard
management
• Payroll Services
• Bookkeeping
• Lending Products
• Banking
• Insurance Products
• Fraud / Default
services
Merchant Acquirers: Status Quo Economics
1
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13. 1
2
Data Can Improve Merchant Services &
Performance
DATA COLLECTION
PREDICTIVEANALYTICS
Customer Trends
• Transaction Behavior:
Repeat usage and
lifetime spend
• Predict future needs
and merchant pairing
Demographics:
• Timing / Age /
Location
Transaction Data
• Processing volume
• average ticket size
• Repeat customer data
• Card /Mobile/Online
• Seasonality
Merchant Services
• Loyalty and improved
multichannel
marketing and channel
management
• Merchant pairs and
cross-promotions
• Forecast bad debts
and chargebacks on
limited data
• Predict fraudulent
transactions
• Improve Cash Flow
forecasting
NEW PRODUCTS
Customer
• Custom promotions and
service bundling
Merchant
• POS Fraud prevention
• Seasonal Working Capital
financial products
• Staffing suggestions
• Recommendations for
downtime utilization
• Inventory Management

14. How Biz2Credit uses data to enhance
revenue streams
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15. • In order to meet customer needs, merchant service providers need to
anticipate clients business needs
• Introducing merchants to new revenue streams adds value to both customer
and merchant servicer
• Data collection and analytics of merchant ecosystem provides an opportunity
to create value added services to merchants
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4
Key Takeaways

16. 1
5
Biz2Credit in a few words…
Biz2Credit is an online marketplace that equips small and medium size
businesses with tools needed to analyze their financial health and equips
banks with the tools to more efficiently manage their small business lending
process. Proprietary technology streamlines the loan application process and
connects borrowers to lenders using a patented credit algorithm.

17. • Funded over $1 Billion to date
• Over 1,200 lenders on our platform, including 50+ micro-lenders
• Has direct reach to over 1.6 million small and medium sized business
owners
2012 - Entrepreneur.com Top Small
Business Finance Resource
2011 - Crain’s Top Entrepreneur
1
6
Biz2Credit in a few words…

18. 1
7
Biz2Credit is the solution for
small business
Streamlines Application Process
• A single digital application for all lenders
• Financial/business data can be pulled from the 5 big touchpoints
• Store and share documents with lenders via DocVault
• Begin and complete loan process without ever leaving the platform
Ensures Appropriate and Competitive Financing
• Marketplace environment ensures competitive rates
• Biz2Credit algorithm calculates best financing options for each business
One-Stop Shop For Any Small Business
• Full array of financing solutions for entire life-cycle of a business
• BizAnalyzerTM provides free financial analysis, scorecard, and recommendations on an on-
going basis

19. 1
8
Biz2Credit is the solution for
small business
Current Market:
------------------------------------------
With Biz2Credit:
Lender A
Lender A
Lender C
Lender B
Lender D
Lender B
Lender C
?

20. 1
9
Biz2Credit and Data Analysis
The Biz2Credit Loan application captures card processing key data
• Name of processing company, merchant ID
• Monthly card sales, transaction volume
• Fee rates paid by merchants to processors
To determine credit eligibility, Biz2Credit analyzes different data sources including
card processing statements. This enables Biz2Credit to:
• Lower loan defaults: Loans provided through Biz2Credit have a 75% lower risk of
default compared to traditional lending
• Lower borrowing expenses by over 50% compared to traditional lenders
• Analyze industry trends and structure new loan products to meet varying demands
This has enabled Biz2Credit to provide low interest rate products while ensuring
that the lenders on our platform meet their lending IRRs

21. 2
0
Partner with Biz2Credit to provide credit
to your customers
1. Offer your customers a single, online financing resource that can find the
best loans for any type of small business
• Biz2Credit has over 1,200 lenders on the platform and offers the full gamut of
financing options (eg - Start-up loans, micro-loans, working capital loans, SBA
loans, Asset-backed loans, cash advances, etc)
• Other financing partners may only offer 1 or 2 different products, forcing
customers to take expensive products such as a Cash Advance
2. Generate a new revenue stream
• Biz2Credit will share of all recurring revenue generated from referred
customers
3. Integrating with Biz2Credit will increase customer retention and stickiness
for your product
• Integration will allow customers to apply for credit in a more seamless
fashion, and receive pre-qualified offers instantly
• Biz2Credit tools provides real-time scorecard to all small business owners

22. Thank you