Distributor Credit Solutions offers a private label credit program that allows distributors to extend credit to merchants without taking on credit risk. Through the program, DCS will provide cash advances to qualified merchants based on their credit card receipts. The funds will be used to pay distributors for product orders. DCS handles the credit approval process and repayment through set deductions from the merchant's future credit card receipts. This allows distributors to increase sales by giving merchants purchasing power while avoiding risks of unpaid invoices or shrinkage in orders.

1. Distributor Credit Solutions

2. Private Label Distributor to Merchant Credit Program Offer Your Merchants Credit Terms Without Taking on the Credit Risk Prepared By Albert Behin Director of Business Development Distributor Credit Solutions 917-361-0116

3. Background – Who We Are Distributor Credit Solutions (DCS) is a Manhattan based boutique high risk credit provider for small businesses. Mission

4. WHAT WE ARE OFFERING To lessen the challenges faced by distributors regarding the need to extend credit for their merchants and the potential risks that are associated with extending the credit. To limit unpaid products by the merchant which may cause the sudden cancellation and shrink of orders. To help distributors and merchants avoid losing money.

5. How DCS works The distributor will let the merchant know that they can offer them credit terms on their next purchase in the form of a cash advance. The funds will be accessible the same way a revolving line of credit works. DCS will provide the distributor with informational marketing materials to give to the merchant that explains how the money advanced can be accessed and utilized. DCS will also provide a phone number for the merchant to call and speak with one of our qualified sales merchants. DCS also provide private label marketing materials with the distribution company’s logo, have the phone answered with the distribution company’s name, and have it appear as if the distribution company is directly offering the credit terms to the merchant.

6. Advantages of our Program For Distributors: DCS will ensure that the customer takes delivery of the entire order that was initially placed. DCS will ensure that distributors collect payment upfront for the entire quantity of product that was ordered. DCS will help give merchants purchasing power so they can afford entire orders and purchase new products without cannibalizing sales of existing products. Decrease the need for the driver to collect cash from merchant.

7. Advantages of our Program For Merchants: DCS will provide purchasing power to merchants so they can afford to pay for the entire product ordered and be in a position to be able to afford to increase orders and purchase new products. Lower merchants’ cash flow burden by providing a cashless solution. Eliminate the need for merchants to have cash on hand when the delivery arrives.

8. Qualifying Merchants Upon calling us, one of our credit representatives will answer all questions regarding the credit products that we offer, then the application process begins. The merchant’s monthly credit or debit card transactions and/or monthly deposits to their bank are required for us to determine the amount of the cash advance.

9. Process DCS underwriters will evaluate the merchants’ credit card receipts within 3 hours of submission. The revolving line of credit will equal approximately 25% of their monthly credit card receipts. The merchant will place an order for the upcoming month which will be funded to the distributor. All future orders can be placed against their open credit limit (the difference between the original credit limit extended and any portion of the advance that is not used and repaid) allowing the merchant to place each order without concern. Once approved, the merchant will be partnered with the distributor and inform them how much product can be purchased by the merchant from their credit. DCS will take a portion of the credit card receivables each month from the merchant. The distributor will notify our company the next time the merchant places the order and we will prepay the orders.

10. Full Transparency to the Distributor

11. Full Transparency to the Merchant

12. Implementation Creating a Master Corporate Account on the Platform Setting up all location accounts in the database Downloading or installing POS software applet Generating account and terminal numbers Setting up and branding the websites reporting module Setting up and customizing the website if requested Setting up and deploying customized business rules

13. Process Flow A list of perspective eligible merchants would be provided by distributor for the purposes of solicitation for the Cash Advance Revolving line. Merchant submits application and supporting documentation for UW. Merchant is approved for the Cash Advance revolving line. (within 3 hours) Merchant reprograms credit card terminal (within 48 hours) Merchant places full order for the coming calendar month Merchant repays balance via set percentage of credit card receipts (30 days) Funds for full months order are transferred to Distributor (same day as order) With 30 days the balance is satisfied in full Merchant reorders

14. Program Benefits

15. Summary DCS offers a win-win for all parties involved and provides the Distributor with an effective efficient, cost saving solution for its merchants. Much thought and ingenuity went into tailoring a program that would adequately address the needs of the quintessential the Distributor customer. It is our firm belief that this solution will greatly increase sales on the merchant level while greatly benefitting the Distributor bottom-line. DCS is prepared to commence operations immediately have the systems and financial capacity in place to board all merchants interested in the program.