1. CONTACT DETAILS Soheill Sarkoob or Steven Pleace
Sterling Trade Finance Ltd 49 Berkeley Square London W1J 5AZ
Tel: Fax:
Web:

2. TODAY’S PRESENTATION History and Products Company update
Trade sales and mergers in the sector
Sterling as a target for Asset Based Lender (ABL) acquisition?
Building value and accelerating exit

3. HISTORY AND PRODUCTS
Sterling is a transaction based trade finance company offering three core products
Discounting of receivables
Purchase only product
Combined product
Operating in the same space as Asset Based Lenders
Targeting UK SME importers and distributors
The credit crunch - Bank withdrew facility and was replaced with a creative bond funding instrument via CSS; current total capacity £2.5M. Peak Bond holding £900,000
Credit insurance crunch - Insurers reduced credit limits and withdrew cover on the Purchase only product

4. HISTORIC FINANCIALS
Actual Draft Audited Projection Turnover £3M £5M £7.1M £11M £11M £14M Gross Profit £169K £186K £330K £463K £465K £542M Overhead £474K £363K £326K £417K £393K £422K Interest payment £98K £98K £160K £184K £106K £90K Operating Profit (£293K) (£153K) (£6K) £63K £72K £120K Profit/Loss (£399K) (£275K) (£245K) (£138K) (£35K) £30K

5. COMPANY UPDATE
Broadening the client base by developing a new funding facility to service the growing e-commerce sector
Targeting importers of capital equipment helping to further develop client and introducer base
Negotiating credit insurance policy to include cover for the purchase only product
Engaged experienced sales & marketing consultant to represent Sterling, based in the north of UK
Completed our first deal syndication
In negotiations with two banks with regards to providing new funding lines

6. TRADE SALES AND MERGERS IN THE SECTOR
ABFA lists 36 members in 2001 and 40 members in 2013
34 names dropped out of the listing without reducing the overall membership numbers in the same period
16 ABL companies were subject to a buyout or merger
Ashley Commercial - Ultimate Finance Cattles Invoice Finance - Aldermore Invoice Finance Charterhouse Commercial Finance - Leumi ABL City Invoice Finance - Venture Finance Plc - ABN AMRO Euro Factor - Credit Agricole Five arrows - GE Commercial Finance Fortis Commercial Finance - BNP Paribas Isis Factors - London Scottish - Hitachi Capital (UK) Plc Liquidity – Santander RDM – SME Invoice Finance – Metro bank TSB – 1st National - Abbey Cashflow - Bibby

7. STERLING AS A TARGET FOR ABL ACQUISITION
Trade finance expertise which is a specialist skill set and cannot be grown organically
Sterling’s finance products would increase the ABL’s product portfolio
Synergy and added value to existing ABL offering
Provide a differentiator enabling the ABL to stand out compared to others within the market
Allowing ABL company to compete for clients when in competition with banks
Increase ABL’s book size

8. BUILDING VALUE AND ACCELERATING EXIT
Sterling need to increase its lending book and client numbers to at least twice the current size
Achieve profitability and distribute dividends
Increase access to available capital, preferably through bank funding and building on the success of bond and syndication innovations
Further development of product portfolio
Increase sales & marketing presence – in particular regional presence by establish regional offices