Merchant Advance Capital

Income Fund

www.merchantadvancecap.com

Important Notice and Disclaimer

The information contained in this document is disclosed to you by Merchant Advance Capital Ltd. (MAC or the Company). This presentation has been prepared for informational purposes relating only to a possible investment in the Merchant Advance Capital Limited Partnership (the LP or the Fund or the Income Fund or the Partnership) and upon the express understanding that it will be used only for the purpose of the recipients evaluation of its interest in such possible investment. The Company makes no express or implied representation or warranty as to the accuracy or completeness of the information contained herein or made available in connection with any further investigation of the Companys business. The Company expressly disclaims any and all liability that may be based on such information, errors therein or omissions there from. The recipient assumes full responsibility for all conclusions derived from the information contained herein or otherwise made available, whether in writing or verbally. The recipient shall be entitled to rely solely on the representations and warranties made to it by the Company in the Limited Partnership Agreement or any other definitive agreement that may be entered into between the recipient and the Company in respect of any such possible investment. Nothing in this presentation shall form the basis of or be deemed to constitute any offer, contract or commitment to issue any securities in the Company or the Partnership, which may only be issued in compliance with applicable law and the requirements of applicable securities regulatory authorities. The presentation contains statements that are forward-looking in nature. Such statements involve known and unknown risks and uncertainties that may cause the actual results of the Partnership to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions, merchant cash advance fees, the demand for capital, rates of default and other factors which may not be referred to herein or in any definitive agreement between the Company and the recipient.

The Opportunity
Merchant cash advances are filling a growing gap in financial markets. North American banks have recently tightened their lending practices.

The result: many fundamentally strong businesses owned and operated by creditworthy individuals are unable to get the funding they need.

The Market Opportunity

Merchant cash advances originated in the United States in 1998, and were introduced to Canada in 2006. As the industry in Canada is in its infancy, this presents an opportunity as the market is large and contains many qualified merchants. Merchant Cash Advance Companies Active in Canada

What is a Merchant Cash Advance?

Financing for small and mid sized businesses that accept debit/credit card payments.
Purchase of a fixed amount of a businesss future debit/credit card sales at a discount, collected electronically through a fixed percentage of future sales. Personally guaranteed and collateralized against the assets of the business.

Merchant Cash Advances

Merchant cash advances are used by a variety of businesses, with restaurants being the most likely candidates due to stable revenues. They are used for a variety of business purposes including renovation, expansion, inventory purchases, and equipment repair, among many others.

(Source: InfoUSA.com, MCAForums.com) 6

Financial Returns
The fee charged by funding providers (the value of the discount at which the

future debit/credit card sales are purchased) typically ranges from 15%-40% of the value of the advance, with estimated repayment within 4-12 months.
Since merchant cash advances are paid down on a daily basis, funding providers receive immediate cash flow for reinvestment, further boosting returns and enhancing their liquidity. As a result, net annual returns in the industry are approximately 15% after taking into account the costs of doing business and bad debt expenses.

Typical Advance

An owner of a restaurant which processes approximately $30,000 of debit/credit card sales per month receives a merchant cash advance of $23,000 in exchange for $30,000 worth of future debit/credit card sales collected using a 10% withholding. Merchant Advance Capital then withholds 10% of all debit/credit card transactions until it receives $30,000, which in this example would take approximately 10 months. Once the restaurant owner has repaid a significant portion of the payback amount, he is eligible for a renewal. The owner personally guarantees the $30,000 and the advance is collateralized against the assets of the business. 8

Who is Merchant Advance Capital?

Merchant Advance Capital is a financing company based in Vancouver, BC, Canada. The Company was founded by Kevin J. Ainsworth and David Gens in 2009.

Sophisticated systems allow for effective and management, which lowers risk and increases returns.

efficient

portfolio

A strong committed management team with extensive information technology and finance experience enhances the Companys competitive position. A conservative underwriting strategy mitigates risk by ensuring the portfolio consists of high quality merchants.

Management Overview
David Gens: Co-Founder, Chief Executive Officer
Extensive finance and banking background. Worked for TD Securities as an equity research associate covering information technology and diversified business trusts. Was an investment analyst with CAI Capital Management Co., a New York based private equity firm focused on mid-market transactions in Canada and the US. At CAI, David worked on buyouts, restructurings, acquisitions, recapitalizations and investments in corporate growth in Western Canadian companies. CAI invests $20 to $75 million of equity capital in each opportunity with the ability to deploy $100 million+ in special situations with some of its limited partners as co-investors. While studying at the University of British Columbia, David was a member of the UBC Portfolio Management Foundation, the most prestigious and exclusive extracurricular finance program in Western Canada, where he and five other students managed a $4 million pool of capital of North American publicly traded fixed income and equity securities. David holds a BComm (Finance) degree from the University of British Columbia where he graduated with honours as a Leslie Wong Fellow. Strong operations background. Previously Senior Vice President at Ainsworth Lumber Co. Ltd., a BC based publicly-traded company. During his 20 years at Ainsworth, Kevin was responsible for the companys BC timberlands, four panel manufacturing facilities in BC and Alberta and the companys investor relations. Kevin holds BSc and MBA degrees from the University of British Columbia. Information technology and systems expert. Radik Gens is a specialty IT contractor with 40 years of industry experience. Radik is responsible on a day-to-day basis for developing and maintaining the Companys IT infrastructure. Previously, Radik Gens was President & Chief Executive Officer of Gens Software Ltd. which focused on custom software development, specializing in biometrics and identity management, web development, PDA application development, and service-oriented architecture. Gens Softwares clients included Microsoft, Netscape, Iridian Technologies, British Airways, American Airlines, Acess360, ImageWare Systems Inc., BC Liquor Distribution Branch, and Ritchie Bros. Auctioneers. Prior to founding Gens Software Ltd. Radik held senior software engineering positions with Canadian Airlines Ltd., Microsoft Corporation, and Pacific Western Airlines Ltd. Radik holds an MSc degree from the Russian Moscow State University.

Kevin J. Ainsworth: Co-Founder, Chairman & President

Radik A. Gens: Chief Information Officer

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The Income Fund

Merchant Advance Capital Income Fund invests in a portfolio of secured, personally guaranteed merchant cash advances, providing investors with a diversified, lower risk income stream.
To date, Merchant Advance Capital Income Fund has provided over $2 million in financing to over 50 merchants across Canada. The management team has invested over $600,000 in the Income Fund. Targeted yield is 12-15% per annum paid on a quarterly basis with an optional distribution reinvestment program. Investors in the fund have exceptional liquidity with the ability to redeem a portion of their investment on a quarterly basis.

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The Income Fund

INVESTORS

LP Income

Invests

Cash Advance Revenue POOL OF MERCHANT CASH ADVANCES

Invests

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Why Merchant Advance Capital Income Fund?

Excellent high yield income opportunity.
Conservative low-risk underwriting standards. Sophisticated IT infrastructure.

Diversified merchant cash advance portfolio.

Strong track record & management team. Exceptional investor liquidity. Attractive forecast net returns of 12-15%.

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Thank You

For More Information, Please Contact: Chris Biasutti Investor Relations 1-888-854-4258 chris@bluewaterinvestments.ca
www.merchantadvancecap.com
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