“What Is Invoice Financing and How Can It Help Your Business?”

1. What Is Invoice Financing and How Can It Help Your Business? www.hiveterminal.com BUSINESS MANUAL

2. Facts: “One in ﬁve companies declines orders due to a lack of current assets.” “According to research by the European Bank, 82% of small and medium companies collapse due to bad management of receivables.“ “92% of companies are growing slower than expected due to issues with cash ﬂow.” “28% of all companies worldwide deal with issues created by long payment deadlines.” (2017 C2F0 Working Capital Outlook Survey)

3. What About Slovenia? Sadly, Slovenia is no exception. The payment deadlines are long, and the average invoice is repaid at 60 days, with some invoices being paid at around 120 days. During the last ﬁnancial and economic crisis, payment deadlines were pushed back due to liquidity issues faced by companies. The end of the economic crisis, and economic growth in the last few years, however, have not eliminated long payment deadlines. In turn, healthy and successful companies that may even be experiencing an increase in sales growth, are experiencing liquidity issues and may end up closing their doors. Company Problems: Long payment deadlines - up to 120 days in some cases; Endless paperwork, high insurance costs, long waiting periods and high bank loan interests. Liquidity issues; Slower growth;

4. Factoring Is the Solution! When buyers postpone payments and suppliers need to pay invoices, companies face liquidity issues. Entrepreneurs and small businesses can avoid this happening to them by selling receivables or factoring. Through factoring, they can assign their receivables by buyers to a factor, and receive their money immediately. Factoring, or acquisition of receivables, has long been known as the last resort and an option reserved for large companies only. However, none of this is true. Factoring is a financial service that enables companies to have constant financing of their business by selling invoices. It is a service that positively affects the development of entrepreneurship, being particularly suitable for small, medium and fast-growing companies. They can reduce the risk of non-payment by using factoring. The main advantage of this form of short-term financing is to prevent the occurrence of the worst liquidity issues, as it allows the entrepreneur to guarantee a predictable and stable cash flow and avoid liquidity issues before they affect the business or the entire existence of the company. The advantages of factoring over bank loans: • • • • • By using factoring, the entrepreneur does not have to wait because of long payment deadlines and can make sure their company receives money immediately after they issue an invoice. The authorisation of bank credit is often a long and complicated process, whereas factoring is quick and easy. By selling the receivables, the entrepreneur ensures a stable and predictable cash flow and a theoretically unlimited source of financing. Factoring improves a company's financial image and credit rating, as it positively influences its liquidity. There is no need for collateral with factoring.

5. Hiveterminal: Quick and Easy Sale of Invoice Receivables! Hiveterminal is a Slovenian online platform that unites sellers and buyers of receivables in one place. The platform enables small and medium-sized companies immediate, easy, and free access to fresh capital through the sale of their receivables! Three Key Advantages of Hiveterminal Instant Liquidity: Receive Money on Your Account Immediately! No more waiting in line at the bank, high insurance costs, and heaps of paperwork. On the Slovenian online platform Hiveterminal, selling an invoice is only a few clicks away. You will receive the money on your account immediately and go back to focusing on your business. No Worries: The Risk of Non-Payment is Taken Over by the Receivable Buyer! Traditional factoring providers offer short-term loans for invoices, which is rather risky for the company that issued the invoice. In case of non-payment or late payment, the company has to return the loan and is pushed further into financial issues. Hiveterminal offers non-refundable factoring, where you can sell your invoice and assign ownership rights and risk factors in the case of non-payment to the invoice buyer. This means you no longer have to worry, even if there is no payment! Free Use: Without Hidden Fees and Commissions! Registering and using Hiverterminal is completely free of charge, and you can upload your receivables without any hidden costs and commissions! This means you can only gain by using it, as more liquidity means you can increase your competitiveness and experience faster growth. You can leave acquiring liquidity to Hiveterminal.

6. 27 h, 6 min The amount of time it takes to receive money on your account after uploading an invoice, on average. 2 h, 45 min How long it takes on average to confirm invoice authenticity by the debtor, on average. 60 seconds The average time it takes to upload an invoice on Hiveterminal. Real-Life Example Tisko Ltd., a company that prints promotional material, decides to use Hiveterminal to sell their outstanding invoices in order to improve their liquidity. Tisko Ltd. uploads an invoice totalling €1,507.68, with a 48-day payment deadline. By using its risk assessment algorithm, Hiveterminal calculates that the maximum amount of financing this invoice can be sold for is €1,438.13. Before the invoice is sent off for confirmation, the debtor, an entrepreneur named Janez Novak, is notified about the intent to sell. Janez Novak also uses the Hiveterminal platform, which makes the process of confirming the invoice's validity much easier. Tisko Ltd. also informs the Hiveterminal user support department about its intent to sell the invoice. Tisko Ltd. sets the price of the invoice at 1:46 p.m. as identical to the maximum financing amount. Janez Novak is ready to confirm the upcoming invoice and does so two minutes later, at 1:48 p.m., which means the invoice fulfils all the requirements for being placed on the Hiveterminal invoice market. The invoice is bought by a foreign investor on the same day, at 1:50 p.m. Tisko Ltd. sends in a claim for final payment at 2:04 p.m. after receiving notification of the invoice's sale. The Hiveterminal user support department performs the transaction before the end of the working day. Tisko Ltd. receives money on their account within 24 hours from submitting the claim. * Hiveterminal does not disclose its clients' information. The names of the legal entities, invoice sellers, and debtors have been changed for privacy reasons. The financial data was not changed.

7. How Does Hiveterminal Calculate the Discount? Hiveterminal prepares a risk assessment of the invoice in real time. This is how the portal comes up with the discount amount. The calculation is inﬂuenced by three essential ingredients: Time Remaining Until the Payment Deadline Debtor's Credit Rating Your Company's Credit Rating

8. Click below and register, free of charge. REGISTER Registration Steps: Fill in your registration number and click Next. Verify that the data is correct. Click Next. Select the company owner or legal representative in the drop-down menu and fill in their personal data. Click Next. You can designate a person from your company to receive Hiveterminal notifications. You will be prompted to fill in their contact information. If this position will be performed by the legal representative you selected in the previous step, select the option: “I confirm that I have all the necessary authorisations for using Hiveterminal." Click Send. Get paid right after you get the job done!

9. Blockchain-based Invoice Financing Platform Start selling outstanding receivables today! For more information call us at +386 (0)1 292 60 23 or write us at info@hiveterminal.com. www.hiveterminal.com Seller uploads the invoice to Hiveterminal. Debtor conﬁrms the invoice. Invoice is sold. Invoice seller receives money.