Sancus BMS Group is a profitable niche lending business operating different funding solutions in multiple jurisdictions. The document discusses Sancus' corporate structure and subsidiaries in various locations. It provides an overview of Sancus' loan book size, profits, and investors. Additionally, it outlines Sancus' journey since 2014 in developing new management, products, and risk processes to lead the alternative finance market.

1. 21st September 2017
Welcome to our Funders Evening
Market Evolution & leading the way in the AltFi world

2. 21st September 2017
Sancus BMS Group
Andrew Whelan, CEO

3. This document is confidential and should not be circulated without prior approval from Sancus BMS Group3 | 25/09/2017
Group Overview
*Excluding Sancus Finance (estimate)
Data source: Sancus Group as at 31/12/16
£578m
Cumulative Loan Book
£162m
Invoice Discounting
Supply Chain Financing
£274m
Asset Backed Loans
£142m
Business Loans
£30m
Proprietary Capital
£3m*
2016 Profits
Ireland Strategic Investment Fund
is an investor in
BMS Finance (Ireland) SARL
British Business Bank
Investments Ltd
is an investor in
BMS Finance (UK) SARL
£152m
Live Loan Book

4. This document is confidential and should not be circulated without prior approval from Sancus BMS Group4 | 25/09/2017
A profitable niche lending business operating different funding solutions in multiple jurisdictions.
Corporate Structure
Sancus BMS Group
(Total staff 39*)
Jersey
Sancus (Jersey) Ltd
Company No. 113391
Guernsey
Sancus (Guernsey) Ltd
Company No. 58612
Gibraltar
Sancus (Gibraltar) Ltd
Company No. 112755
UK
Sancus Finance Ltd
Company No. 7485900
BMS Finance (UK) SARL
Company No. 06008835
Ireland
BMS Finance (Ireland)
SARL
Company No. 905187
Isle of Man**
Sancus (IOM) Ltd
Company No. 012528V
**Affiliate* as at 31/12/16
UK***
FundingKnight
Company No. 7534003
FCA Regulation No. Z2928012
*** Will become part of Sancus BMS Group from 30th June 2017

5. This document is confidential and should not be circulated without prior approval from Sancus BMS Group5 | 25/09/2017
• 2014 saw the development of a new strategy designed to lead the market & the change that was required:
– New management team with a wealth of risk management and funding experience;
– Product innovation key to offer wider range of choice;
– Responsible lending at the core – credit risk over volume;
– Risk management processes.
• 2015 saw the Sancus BMS Group formed – strength of parent
– £5m preference share investment in Sancus Finance;
– Investment in Platform to improve the co-funder experience;
– Ongoing alignment to uniform group process/standards – Independent credit committee;
– Change of name/Group branding to increase profile and presence;
– Funding Knight more closely aligned to Sancus Finance – joint managing board - & achievement of FCA Authorisation.
• We understand & value personal relationships:
– Real people, working with real investors to support real businesses;
– Relationships are key & we deliver F2F, telephone, email or online communication channels;
– Technology is about making it easy to do business with us;
– Technology supports speedier delivery of funding solutions to our clients.
Sancus Finance – The Journey so far

6. 21st September 2017
The Evolution of Funding & the
impact on your funding opportunities
Facilitator - Andy Davies

7. This document is confidential and should not be circulated without prior approval from Sancus BMS Group7 | 25/09/2017
Your Panel Facilitator
Andy Davies is a UK-based writer on investment, finance and
business. He was previously a journalist on the Financial Times,
where he worked for 15 years and held a series of senior roles
including editor of FT Weekend.
Andy’s work appears in a range of financial publications and he is the
author of several research reports on non-bank finance for small
businesses, for organisations including Nesta, The CSFI and the
ACCA.
He is a contributor and investment columnist for Prospect, the monthly
current affairs magazine, and was named Personal Financial journalist
of the Year in the 2012 Wincott Awards.

8. This document is confidential and should not be circulated without prior approval from Sancus BMS Group8 | 25/09/2017
Your Panel
Caroline Langron, MD, Sancus Finance & Funding Knight
Caroline has over 35 years’ experience in the asset-based lending market and delivers a proven track record at a
senior level in risk environments. She has successfully built and managed robust teams and processes in this space,
consistently hitting performance targets and maintaining low default rates. Having worked for Barclays, Close Bros.
and Bibby Financial Services, Caroline’s experience spans the UK, Europe and America. During her time as a board
director at Bibby, she was responsible for establishing their invoice discounting business and building their successful
risk protocols.
Jake Wombwell-Povey, CEO, Goji
Prior to stepping up to launch Goji, Jake advised some of the largest UK P2P lending platforms whilst at a global
advisory firm. His experience includes corporate Finance (Public & Private ECM) as well as strategic and regulatory
reviews for some of the biggest names in financial services, wealth management and fintech including: Woodford
Investment Management’s £800m IPO of Woodford Patient Capital, the sale of Intelliflo to Hg, and the sale of
GoCompare.com to eSure.
Graham Martin, Chief Investment Officer, Bond Mason
Graham is an experienced lending professional who has held credit-focused positions at leading banks, including
HSBC, and alternative asset managers, including The Blackstone Group. Graham's buy-side experience ranges from
assessing SMEs to analysing listed global companies, and covers private and public loans, bonds, and derivatives.
More recently, Graham specialised in investing and trading leveraged loans and high-yield bonds across a number of
sectors.

9. 21st September 2017
The Evolution of Funding & the
impact on your funding opportunities

10. 21st September 2017
Market Evolution & leading the
way in the AltFi world
Caroline Langron & Richard Whitehouse

11. This document is confidential and should not be circulated without prior approval from Sancus BMS Group11 | 25/09/2017
Your presenters
Caroline Langron, MD, Sancus Finance & Funding Knight
Caroline has over 35 years’ experience in the asset-based lending market and delivers a proven track record at a
senior level in risk environments. She has successfully built and managed robust teams and processes in this space,
consistently hitting performance targets and maintaining low default rates. Having worked for Barclays, Close Bros.
and Bibby Financial Services, Caroline’s experience spans the UK, Europe and America. During her time as a board
director at Bibby, she was responsible for establishing their invoice discounting business and building their successful
risk protocols.
Richard Whitehouse, Sales Director, Sancus Finance & Funding Knight
Richard has over 18 years’ experience in invoice finance, asset based lending, supply chain finance and trade
finance. His roles have included working at both independent and bank owned funders in the UK, Ireland and
Germany, including Aldermore Bank, AIB Plc, and Royal Bank of Scotland Invoice Finance.
He has been integral in developing and delivering sales at a strategic level and has a track record in achieving
performance objectives with a keen eye on returns. He has an excellent reputation in leadership roles within both
sales and relationship management.

12. This document is confidential and should not be circulated without prior approval from Sancus BMS Group12 | 25/09/2017
• The market & client expectations
• Delivering to clients and investors
• Generating opportunities for you
• Product Innovation at Sancus
• Working to protect our Funders
Agenda

13. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.13 | 25/09/2017
• Explosion of choice in the AltFi market;
• Businesses expect ready availability of finance with rapid, easy & standardised processes;
• Transactional activity but trust is at the core;
• Speed of decision making & efficient delivery of service.
The Market & Client expectations

14. This document is confidential and should not be circulated without prior approval from Sancus BMS Group14 | 25/09/2017
• Range of funding solutions which deliver:
– flexibility and ease of use;
– increased levels of working capital to support growth;
– supply chain protection;
– ability to benefit from early settlement discounts;
• Ability to deal with us, how they choose – relationship is seen as important as operating online;
• Efficient and rapid processes;
• Certainty of funding.
Delivering to clients

15. 21st September 2017
Originating opportunities for you

16. This document is confidential and should not be circulated without prior approval from Sancus BMS Group16 | 25/09/2017
• 85% of origination is intermediary driven but we are focussed on expanding direct origination;
• Product innovation to drive greater demand;
• Marketing strategy focussed on:
– Online awareness, presence & social channel engagement;
– E-marketing campaigns to targeted businesses promoting specific solutions – Education & SCF;
– Events – Education sector;
– PR - focus on thought leadership content.
Originating opportunities for you

17. This document is confidential and should not be circulated without prior approval from Sancus BMS Group17 | 25/09/2017
Origination by Channel
Intermediaries Partners Direct
Brokers
Regional
Volume
Tech-led
Prof
Advisors
Accountant’s
Solicitors
National
firms
framework
Transaction
Led
PE / VC
Corp Fin
Debt
Advisory
Sector Specific
Influencers
Sector Focused
Advisors
Affinity Groups
NACFB
RHA
BUFDG
AoC
BMRA
Passive
Marketing
PR
Adverts
Digital
Active
Marketing
Telesales
Campaigns
Client
Rebuy
Referral

18. 21st September 2017
Product Innovation – creating greater
opportunities for investment

19. This document is confidential and should not be circulated without prior approval from Sancus BMS Group19 | 25/09/2017
 Supply Chain Finance: Short term: 30 - 120 day funding
 Education Finance: Short term: 30 - 120 day funding
 Invoice Finance: Short term: 30 - 90 day funding
 Property Finance: Medium Term: up to 2 years with potential to extend
What products and solutions do we offer?

20. This document is confidential and should not be circulated without prior approval from Sancus BMS Group20 | 25/09/2017
 Credit insurance on buyer provides 90% protection to our Co-Funders with option for 100% cover;
 Promissory note from Buyer;
 Deed of undertaking;
 Maximum Funding limit capped at insurance limit.
 £5m – £100m turnover;
 Fund up to 100% less discount of supplier invoice;
 Credit risk lies with buyer;
 Profitable trading;
 No adverse credit history & taxes paid up to date.
Provision of working capital solution via early payment of clients suppliers:
Security:
Product Detail: Supply Chain Finance
Summary:
 £24m credit insured approvals in 2017.

21. This document is confidential and should not be circulated without prior approval from Sancus BMS Group21 | 25/09/2017
Engineering business in the South of England
Case Study – Supply Chain Finance
• Needed to source working capital to support new projects in
continental Europe and the UK;
• Sancus provided £2m of working capital through a 90 day supply
chain finance programme;
• Extended days payable outstanding by 45 days;
• There was zero cost to our client who was able to gain a 3.5%
increase in gross margin;
• Sancus paid approved supplier invoices within 3 days of delivery to our client, allowing the client to negotiate 8%
early settlement discounts.

22. This document is confidential and should not be circulated without prior approval from Sancus BMS Group22 | 25/09/2017
• Personal or corporate guarantees where appropriate;
• Debentures where appropriate;
• Can be disclosed or confidential dependent on security and strength of client.
• Minimum turnover £1m;
• Up to 85% advance;
• Maximum funding line is capped at three times tangible net worth;
• No adverse credit and taxes paid up to date (or approved time to pay);
• Supporting credit rating on debtor and good audit paper-trail for invoice(s) to be funded.
Provision of working capital on a single or multiple of selected invoices:
;
Security:
Product Detail: Invoice Finance
Summary:
 £1m of revolving credit lines approved in 2017;
 Following review in credit policy for product.

23. This document is confidential and should not be circulated without prior approval from Sancus BMS Group23 | 25/09/2017
Industrial coating business in the North of England
Case Study – Invoice Finance
• Annual turnover of £7m;
• Client had won 2 large contracts creating a need for an additional
£750k working capital;
• Incumbent bank declined to support;
• Traditional invoice finance solutions required control over the whole
sales ledger and restricted the amount of funding available;
• Fees based on all turnover meant that traditional invoice line was too
expensive;
• Restricted funding from traditional invoice finance meant that company would not have sufficient funds to carry out
new contracts;
• Sancus Finance provided a £750k invoice finance line for the 2 new customers only;
• Company generated in excess of 10% contract values and they have now been invited to tender for additional
contracts, ensuring the companies continued growth.

24. This document is confidential and should not be circulated without prior approval from Sancus BMS Group24 | 25/09/2017
• Personal or corporate guarantees where appropriate;
• Debentures where appropriate;
• Can be disclosed or confidential dependent on security and strength of client.
• UK College or University;
• Up to 85% advance;
• Maximum Funding line is capped at three times tangible net worth;
• No adverse credit and taxes paid up to date (or approved time to pay);
• Supporting credit rating on debtor and good audit paper-trail for invoice(s) to be funded.
Advance payment against student loan body and skills funding agency payments:
;
Security:
Product Detail: Education Finance
Summary:
 £12m of credit lines approved in 2017.

25. This document is confidential and should not be circulated without prior approval from Sancus BMS Group25 | 25/09/2017
Further Education College in Northwest England
Case Study – Education Finance
• Annual turnover of £25m;
• Requirement to invest in infrastructure and facilities to attract students
whilst dealing with Government funding cuts and demand to offer
apprenticeships which placed a strain on cash reserves;
• Short term bank loans in place but with Government payments
changing, they needed an additional source of funding to complement
existing banking lines;
• Sancus Finance provided a £800k Education Finance facility;
• With funds in place our client are pressing ahead with plans to merge with another local college to increase size and
range of courses and facilities on offer.

26. This document is confidential and should not be circulated without prior approval from Sancus BMS Group26 | 25/09/2017
• 1st charge;
• Plus mixture of debenture, share charge, personal guarantees and corporate guarantees as appropriate.
• LLP, Ltd, PLC,SPV and trading offshore trusts;
• Up to 75% LTV;
• “Skin in the game” from borrower;
• Commercial and residential developments- caveat not main residence;
• Minimum term 3 months, up to 2 years.
Finance for development, bridging and purchase:
Security:
Product Detail: Property Finance
Summary:
• £40m loans approved since April;
• Healthy pipeline.

27. This document is confidential and should not be circulated without prior approval from Sancus BMS Group27 | 25/09/2017
Isle of Man/UK Company
Case Study – Asset Backed Loan
• Purpose of loan: to refinance existing borrowing;
• Loan value £3.1m;
• Funding: Sancus with a syndicate of Co-Funders;
• Borrower’s Interest Rate: 11%;
• Co-Funder’s Interest Rate: 9%;
• Interest Serviced: Quarterly;
• Term: 12 months;
• Security value: £5.01m;
• Security: first legal charge over 3 UK commercial properties, and debentures from both borrowers;
• Repayment strategy: sale of two properties and refinancing of the residual debt;
• Completion: Mid August 2017;
• Fees: Commitment fee 0.50% & Arrangement fee 1.50%;
• All legal fees paid by borrower.

28. 21st September 2017
Working to protect our Funders

29. This document is confidential and should not be circulated without prior approval from Sancus BMS Group29 | 25/09/2017
• Invoice Discounting funding : We underwrite the first 10% of your capital loss;
• Uninsured Supply Chain funding : We underwrite the first 10% of your capital loss;
• Insured Supply Chain funding : The first 90% of your capital loss is covered by credit insurance;
• Enhanced Protection - NEW : Co Funders can choose to have 100% capital advance protection on
Supply Chain Finance – Launch date to be announced shortly.
How can we offer this?
• Supply Chain Finance credit insurance policy with QBE Insurance (Europe) Ltd;
• GLI Finance Plc commitment – Stand by facility agreement to support 10% protection policy;
• Enhanced protection 100% - Small reduction in return to Funders - peace of mind;
• We participate in every trade and “die” first.
Sancus – Co Funder protection policy

30. This document is confidential and should not be circulated without prior approval from Sancus BMS Group30 | 25/09/2017
Credit insurance is provided on Supply Chain Finance products only:
Credit insurance
• QBE Insurance (Europe) Ltd (09175130) - A+ Rating;
• 90% on approved Supply Chain finance limits;
• Covers insolvency and protracted default;
• Maximum policy liability GBP 4,000,000;
• Premium paid by Sancus Finance Ltd.
Note: All security including Credit insurance benefit is held in our security trustee company “Belvedere Security Ltd” which
is a wholly owned subsidiary of Sancus Finance Ltd.

31. This document is confidential and should not be circulated without prior approval from Sancus BMS Group31 | 25/09/2017
• Virtual trust account with Barclays for each Co-Funder and client;
• All monies move through trust accounts;
• All accounts balanced daily to Platform funder account;
• Ring fenced and segregated from corporate monies with HSBC;
• Flow charts available to demonstrate process.
Co Funder monies – Protection

32. This document is confidential and should not be circulated without prior approval from Sancus BMS Group32 | 25/09/2017
The Credit Experience
Experience:
• 200 years combined credit experience;
• Speed and certainty of execution;
• Common sense;
• Ability to review complex scenarios.
Pre-Fund:
• Site visits where appropriate;
• Credit searches;
• Taxes verification;
• Financial review;
• Verification where appropriate;
• Sector checks.
Requirements:
• Ability to service debt;
• Good history;
• Reporting ability;
• Good paperwork;
• Strong moral fibre.
Ongoing:
• Monitor credit agencies;
• Periodic update on taxes;
• Financial updates;
• Site visits where appropriate;
• Verification where appropriate.

33. This document is confidential and should not be circulated without prior approval from Sancus BMS Group33 | 25/09/2017
Defaults – Sancus Finance
• January 2015 - New credit team and processes
• January 2016 - Sancus BMS Group becomes majority
shareholder
• March 2016 - New product focus - Supply Chain
Finance and Education
• September 2016 - Credit insurance policy on Supply
Chain product
Business model – Key event changes
Defaults and Recoveries
Year Default (%) Recovered (%) Crystallised Loss (%)
2017 1.05% 0.38% 0.03%
2016 1.31% 4.59% 1.25%
2015 0.21% 6.95% 0.20%
2014 6.72% 17.96% 5.51%
2013 4.45% 47.43% 2.34%
2012 0.00% 0.00% 0.00%
Lifetime 3.15% 23.14% 2.29%
Sancus Majority Shareholding

34. This document is confidential and should not be circulated without prior approval from Sancus BMS Group34 | 25/09/2017
Current Average Funder returns
• 90% Insured Supply Chain 6% per annum assuming fully deployed
• Education Finance 6% per annum assuming fully deployed
• 100% protection Supply Chain* 4% per annum assuming fully deployed
• Invoice Finance with 10% protection 8% per annum assuming fully deployed
• Property Finance 8% per annum assuming fully deployed
 Other than 100% protection* on Supply Chain Finance, returns are gross of defaults;
 All returns are shown annually based on full deployment;
 We do not charge funder fees;
 Higher rates than the above will occasionally be offered commensurate with risk;
 All rates are subject to change but would be notified at time of opportunity.
*Launch date to be announced

35. 21st September 2017
In summary…

36. This document is confidential and should not be circulated without prior approval from Sancus BMS Group36 | 25/09/2017
• Experienced credit team – 200 years of credit experience;
• Sancus Protection policy – underwrite first 10% of capital loss/credit insurance/100% protection;
• We participate in every deal and “die” first;
• Average net returns range from 4% to 8% on terms from 30 days to 24 months;
• Ability to obtain blended return and liquidity across many products;
• Short term liquidity options available on Supply Chain, Education and Invoice Financing;
• Auto deploy or self administer;
• State of the art platform.
Why Fund with Sancus?

37. 21st September 2017
Q&A

38. 21st September 2017
Legal Disclaimers

39. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.39 | 25/09/2017
Important Information and Disclaimer
Legal Disclaimer (page 1 of 2)
This Presentation (this "Document") relates to Sancus BMS Group Limited (the "Company") and its subsidiaries (the "Group") and has been delivered to you (a "recipient") for
information only. This Document does not constitute an offer or invitation to subscribe for shares or other securities issued by the Group, is not capable of acceptance by any recipient
and shall not form the basis of any contract or other arrangement between any member of the Group (or any other person) and any recipient (in any jurisdiction). Without prejudice to
the generality of the foregoing, the issue of this Document shall not be deemed to be any form of commitment on the part of the Company (or any other person) to proceed with any
investment.
The information in this Document, which does not purport to be comprehensive, has been provided by the Company and has not been independently verified.
Whilst this Document has been prepared in good faith, no representation, warranty or undertaking, express or implied, is or will be made, and no responsibility or liability is or will be
accepted by the Company or by any of its officers, employees, agents or advisers, in relation to the accuracy or completeness of this Document, the information contained in this
Document or any other written or oral information made available to any interested party or its advisers in connection with this Document, and any such liability is expressly disclaimed.
In particular, but without prejudice to the generality of the foregoing, no representation, warranty or undertaking is given as to the achievement or reasonableness of any future
projections, management estimates, prospects or returns contained in this Document or in such other written or oral information. Each recipient acknowledges and agrees by
accepting this Document that no person has, nor is held out as having, any authority to give any statement, warranty, representation, or undertaking on behalf of the Company. The
foregoing provisions of this paragraph shall not limit the liability of any person in respect of fraud or otherwise as prohibited by applicable laws.
The Company gives no undertaking to provide any recipient with access to any additional information or to update this Document or any additional information, or to correct any
inaccuracies in it which may become apparent.
Any recipient of this Document should note that this Document does not constitute an offer to the public to subscribe for securities in any member of the Group and has not therefore
been approved by any regulatory authority anywhere in the world.
Sancus (Guernsey) Limited is a non-regulated financial services business under the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008
as amended by the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008 (Amendment) Ordinance, 2008. This law has no effect on the
conduct of business of Sancus (Guernsey) Limited except for the requirement to carry out certain measures in connection with anti-money laundering and combating the financing of
terrorism measures in accordance with the guidance issued by the Guernsey Financial Services Commission from time to time. Sancus (Guernsey) Limited is also registered with the
Guernsey Data Protection Commissioner under the Data Protection (Bailiwick of Guernsey) Law 2001.

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Important Information and Disclaimer
Legal Disclaimer (page 2 of 2)
Sancus (Jersey) Limited is registered with the Jersey Financial Services Commission under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 to carry out the business
of providing lending services, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting). As a
result of this registration Sancus (Jersey) Limited is required to comply with certain procedures to prevent and detect money laundering in accordance with the guidance issued by
the Jersey Financial Services Commission from time to time. Sancus (Jersey) Limited is also registered with the Jersey Office of the Information Commissioner under the Data
Protection (Jersey) Law 2005.
Sancus Finance Limited and Sancus BMS Group Limited are not regulated by the United Kingdom Financial Conduct Authority or by the Central Bank of Ireland.
Sancus (IOM) Limited holds a Moneylending Licence issued by the Isle of Man Office of Fair Trading under the Moneylenders Act 1991, which regulates private lending in the Isle of
Man. Sancus (IOM) Limited is also registered with the Isle of Man Information Commissioner under the Isle of Man Data Protection Act 2002.
Sancus (Gibraltar) Limited holds a Moneylender's Licence issued by the Gibraltar Financial Services Commission under the Financial Services (Moneylending) Act 1917, which,
together with the Moneylending Rules 1917 regulates private lending in Gibraltar. Sancus (Gibraltar) Limited is also registered with the Gibraltar Data Protection Commissioner under
the Gibraltar Data Protection Act 2004.
Funding Knight is a wholly owned subsidiary of GLI Finance and is authorised and has been granted an interim licence by the Financial Conduct Authority under the Financial
Services and Markets Act 2000 of the United Kingdom and registered with the Information Commissioner's Office under the Data Protection Act 1998.