Finance Lender

Business Plan

May 2019
Strictly Confidential
 Readership Agreement
The undersigned reader of Finance Lender Business Plan hereby acknowledges that the information
provided is completely confidential and therefore the reader agrees not to disclose anything found in the
business plan without the express written consent of Finance Lender.

It is also acknowledged by the reader that the information to be furnished in this business plan is in all
aspects confidential in nature, other than information that is in the public domain through other means
and that any disclosure or use of the same by the reader may cause serious harm and or damage to
Finance Lender.

Upon request this business plan document will be immediately returned to Finance Lender.

This is a business plan. It does not imply an offer of any securities.

Applicable Law

This contract shall be governed by the laws in the Saudi Arabia.

__________________________________________________

Signature

__________________________________________________

Printed Name

i
 Overview
The alternative lending industry, including the peer to peer (P2P) lending, has shown astounding growth
dating back to 2015 and is expected to see transactional values sore through 2025. Trends suggest there
is a clear lack of access to Sharia Compliant P2P platforms globally and in particular in GCC member
countries.

With tremendous governmental support within the Fintech space Finance Lender will provide a fully
Sharia compliant P2P application designed to connect investors with borrowers.

The following business plan outlines a five-year strategy of Finance Lender and accompanying financial
forecasts that it anticipates on achieving.

ii
Table of Contents
Executive Summary ................................................................................................................ 4
Market Summary ...................................................................................................................................... 4
Three Year Objectives............................................................................................................................... 4
Keys to Success ......................................................................................................................................... 5
Financing Summary .................................................................................................................................. 5

Company Overview ................................................................................................................ 6

The Platform ............................................................................................................................................. 6
Shariah Compliance .................................................................................................................................. 7

Value Proposition – Real World Scenario ................................................................................ 8

Industry Overview .................................................................................................................. 9

Market Needs ......................................................................................................................................... 11
Market Trends ........................................................................................................................................ 11
Market Segmentation............................................................................................................................. 13

Strategy & Go-to-Market Summary .......................................................................................14

SWOT Analysis ........................................................................................................................................ 16

Competitive Comparison .......................................................................................................17

Marketing Plan ......................................................................................................................21

Marketing Overview ............................................................................................................................... 21
Pricing Strategy....................................................................................................................................... 21
Advertising & Promotion Strategy .......................................................................................................... 21

Financial Forecasts ................................................................................................................23

Use of Funds ........................................................................................................................................... 23
Financial Highlights ................................................................................................................................. 24
Projected Profit & Loss ........................................................................................................................... 25
Sensitivity Analysis.................................................................................................................................. 26
Projected Cash Flow ............................................................................................................................... 27
Projected Balance Sheet ......................................................................................................................... 28
Break-Even Analysis ................................................................................................................................ 29
Financial Indicators ................................................................................................................................. 30

Appendix ...............................................................................................................................31

References ............................................................................................................................33

iii
Executive Summary
The methods of which consumers or businesses seek financing to help acquire the things they want or
need is constantly changing and the options to date have been limited. The financing landscape is rapidly
changing thanks to new and innovative technologies in the financial industry. P2P lending is a large part
of that trend, and for good reason. P2P lending eliminates the “middle” man in banks and financial
institutions and allows people and businesses to acquire loans themselves, earning higher returns for the
investors and fair interest rates for the borrower; an incentive for all parties involved.

Finance Lender will be a new and innovative P2P lending platform that is in the MVP stage of the
company’s lifecycle that will be initially tested in the United Kingdom market as a beta test phase. Finance
Lender will connect borrowers to lenders and will add value through a professional platform with unique
features while also remaining 100% Shariah compliant. Finance Lender is committed to ethical practices
and will ensure all necessary compliance requirements and benchmarks are met in order to operate. The
following business plan outlines the five-year growth strategy of Finance Lender, the problem it solves in
the market, and the projected financial performance based on its current business model.

Market Summary

The P2P lending market has proven to be an attractive industry to enter, with the market globally expected
to reach USD$1 trillion by 2025. Consequently, the overall industry is expecting exceptional growth; most
notably some GCC member markets are expected to show growth in excess of 10% (CGAR 2019-2023)
through 2023. Finance Lender will seek to initially target the much more established United Kingdom
market before expanding to Saudi Arabia and other GCC member countries.

Three Year Objectives

Finance Lender has identified the following three-year objectives:

• Secure funding from strategic investor that can add value to the business.
• Ensure algorithms and development of software are functioning appropriately for
implementation of the final product.
• Ensure all necessary licenses are acquired and ensure all operations fall under the guideline to be
100% Shariah compliant.
• Launch product to the United Kingdom market after product is finished and licenses are obtained.

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Keys to Success

Finance Lender has identified the following keys to success:

• Ensure application functionality is easy to use, efficient, and constantly maintained for exceptional
performance to the customer.
• Ensure returns to investors and effective interest rates for the borrower are competitive to the
market.
• Have multiple investment options for the user.
• Adequately screen borrowers so as to decrease default risk.
• Ensure signup growth increases significantly year by year through initial five years.
• Highest degree of customer service in the market – ongoing strategy throughout the business
lifecycle.

Financing Summary

The objective of this plan is to $1,000,000 in seed money in exchange for a 10% ownership stake in Finance
Lender. It is important to note that Finance Lender is open to other financing options, including: an all-out
purchase of the company, or a purchase of Finance Lender within certain geographic regions such as just
the KSA.

Startup Expenses Post Financing Liabilities

Legal and Compliance $30,000 Loan $0
Research and Development $18,750 Mortgage $0
Sales and Marketing $36,000 Other Bank Debt $0
Salaries and Wages $150,000 Total Liabilities $0
Misc SG&A $70,000
Post Financing Investments
Working Capital $510,250
Total Startup Expenses $815,000 Owner $0
Investor $1,000,000
Startup Assets
Total Investments $1,000,000
Furniture and Fixtures $15,000
Post Financing Funding
Office Equipment $20,000
Application Development $150,000 Total Liabilities $0
Total Startup Assets $185,000 Total Planned Investment $1,000,000
Total Funding $1,000,000
Total Requirements
Total Startup Expenses $815,000
Total Startup Assets $185,000
Total Requirements $1,000,000

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Company Overview
Finance Lender is a P2P lending platform that will operate in the United Kingdom and GCC member
countries. Finance Lender will facilitate both consumer and business loans and will be 100% Shariah
compliant. Finance Lender will have a number of key features that will make the platform attractive for
prospective investors and borrowers and will ensure all legal requirements and regulations are upheld.
Listed below is a description of how the Finance Lender platform will work.

The Platform

P2P lending is a relatively new and innovative lending platform (first being introduced around 2005) that
enables individuals to obtain loans directly from other individuals, essentially eliminating out the
“middleman” which can be described as financial institutions (banks, credit unions etc.). P2P platforms
generally come in the form of websites or mobile smartphone applications. The way in which P2P
companies work is by connecting the borrower directly to the investors. The website or application sets
the rates and the terms and enables the transaction, with varying rates based on the credit scores of the
applicant. The applicant is processed through the system to gather all necessary information and to check
the creditworthiness of the applicant. The Finance Lender platform will allow for complete automation of
the process and can allow for the investor and borrower to negotiate terms and rates, something was not
possible before.

For the Investor

An investor would start by opening an account through the website or application, setting up their profile,
and depositing a minimum of USD$100 that can then be used for funding various loans. From there, the
investor can search for borrowers looking for loans and decide which applicant they would like to fund
based on the risk assessment that has been done by the website, and subsequently negotiate terms with
each individual borrower.

For the borrower

The borrower would start by setting up their profile, with personal details such as their name and place
residence. The company, in cooperation with the credit bureau, will take this information, gather the
credit report and assign a risk rating based on the credit report and other necessary variables. This will
help determine the riskiness of the borrower and subsequently an interest rate that the investor should
charge the borrower. If the borrower is deemed to be too risky and as a result has a high likelihood of
defaulting on the loan, Finance Lender would deny the application.

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Once the borrower is approved they can then review different lenders proposed loans terms and decide
to accept or reject. Borrowers do not need to receive the whole proposed loan amount from one
individual investor, instead they can receive multiple small loans from several different investors. Monthly
payments are handled through the platform and the loan will be amortized accordingly; with the option
to pay the whole loan off early.

Shariah Compliance

Shariah compliant, as it relates to funding and investing is governed by the requirement of Shariah law
and the accompanying principles of the Muslim religion. Shariah compliant requires considerable
dedication and effort to implement as there is a comprehensive set of requirements and rules guided by
the Shariah principles. Some of these rules and requirements include the exclusions of investments, which
derive a majority of their income from the sale of alcohol, pork products, pornography, gambling, military
equipment or weapons. Other characteristics of a Shariah-compliant funds include an appointed Shariah
board, an annual Shariah audit and purifying certain prohibited types of income, such as interest, by
donating them to a charity. Finance Lender will be fully Shariah compliant, which can be seen as a major
competitive advantage to the target markets we seek to penetrate.

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Value Proposition – Real World Scenario
The Finance Lender P2P platform creates incentives and value to all stakeholders involved in the business transaction. The Credit Bureau earns
money from the generated loans, Investor’s earn attractive returns, the borrower can easily get funded at low effective interest rate and Finance
Lender are able to safely and efficiently earn on each loan processed.

Finance'Arabia
$35

Investor Borrower Interest'and'Principal'Repayment

$1,000 $945 $1,070

Credit'Bureau
$20

The investor is given an attractive return of 7% on a $1000 loan. The borrower is charged a 13% interest rate on the $1000 loan, paying both the
origination fee as well as the interest owed to the investor. Finance Lender earns a $35 origination fee from the $1000 loan. The Credit Bureau
earns a $5 from the origination fee and a additional $15 credit report.

Assumpions Investor Borrower Finance Arabia Credit Bureau

Loan Value $1,000 Investment $1,000 Loan Recevied $945 Origination Fee $35 Origination Fee $5
Origination Fee - Finance Arabia 3.50% Return on investment ($) $1,070 Repayment of Loan $1,070 Credit Report $15
Origination Fee - Credit Bureau 0.50% Return on Investmnt (%) 7% Effecitve Interest Rate 13%
Credit Report - Credit Bureau $15
Interest Rate (Borrower) 7%
Term (Years) 1

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Industry Overview
Finance Lender competes in the peer to peer (P2P) lending industry which is a “sharing economy”, simply
defined as a platform that helps connect investors with borrowers without the bank acting as an
intermediary. In broader terms, Finance Lender competes within the alternative lending industry.

Alternative Lending Industry

In the scope of the alternative lending industry:

• Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform
provider.
• Alternative lending for SMEs and freelancers (bank-independent loans).
• Online marketplaces for personal loan applications and private investors.

Out of the scope of the alternative lending industry:

• Traditional bank loans.

• Traditional venture capital investments by institutional or private investors.
• Reward-based Crowdfunding.
• Equity-based Crowdfunding.

According to Statista (2019) the value of the global peer to peer lending market is expected to generate a
transactional value in excess of USD$1 trillion by 2025, an astounding growth from the mere USD$1.2
billion in transactional value in 2012.i

Value of Global Peer to Peer Lending Market (USD billions)

1,200
1000
1,000

800

600

400

200
64
1.2 3.5 9
0
2012 2013 2014 2015 2025

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In particular Finance Lender will seek to target the much more established and matured United Kingdom
market to start, with plans to subsequently expand to GCC member countries at a later date. According
to Statista (2019) the United Kingdom had 2019 alternative lending transaction values of USD$4.2 billion,
dwarfing the entire GCC member countries entire transaction value. The United Kingdom by country has
the third largest alternative lending transaction value, trailing only China and the United States. However,
the United Kingdom market is expected to show slower growth in the coming years at a mere 3.1% (CGAR
2019-2023).

UK Transaction Value (USD billions)

6

5 4.7 4.76 4.79

4.49
4.24
3.77 3.98
4

0
2017 2018 2019 2020 2021 2022 2023

The GCC member countries are expected to have a combined 2019 transaction value of USD$188 billion,
with astounding growth in each country in excess of 3.4% (CGAR 2019-2023), to reach an annual
transaction value of USD$241 billion in 2023. The largest expected market by transactional value is the
UAE, however the fastest growing market is that of Bahrain, which is followed by Qatar, with exceptional
growth of 11.6% and 9.8% respectively (CGAR 2019-2023).ii

Country Transaction Value (2019) Growth (CGAR 2019-2023) Transaction Value (2023)

Saudi Arabia USD$20.9 3.4% USD$23.9

Kuwait USD$15.2 8.9% USD$21.4

UAE USD$94.6 4.2% USD$111.7

Qatar USD$30.6 9.8% USD$44.4

Bahrain USD$12.3 11.6% USD$19.0

Oman USD$14.4 9.3% USD$20.5

Total Values USD$188.0 USD$240.9

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Market Needs

Problem

There is a clear lack of Sharia Compliant P2P platforms available worldwide to facilitate individual
borrowers and lenders digitally. Furthermore, there are virtually no Sharia Compliant P2P platforms in
Saudi Arabia. The market trends below supported this by indicating the number one factor for Sharia
Compliant loans in simply a clear lack of access to said loans.

With clear governmental support within the GCC and around the world to further promote and develop
exciting new fintech technologies there has to be a better solution.

Solution

It is apparent there is an unmet global market niche, as limited companies have yet to offer a simple and
easy solution to Sharia Compliance within the GCC and other markets. Thus, introducing Finance Lender
offering a fully Sharia Compliant peer-to-peer lending application. A new method of debt financing that
allows people to borrow and lend money without a financial institution.

Finance Lender acts as an intermediary between borrowers, lenders and investors and helps in formalizing
the secondary loan market. Harnessing technology and big data, the P2P platform connect borrowers to
investors faster and cheaper than any other bank.

Market Trends

Governmental Support

Governments around the world are driving change in the Islamic finance ecosystem. The digital Islamic
economy is a broader area of strategic importance that several core Islamic finance market companies
are prioritizing, with a particular focus on Islamic finance.

Fintech Saudi

The Saudi Arabian Monetary Authority has recently launched Fintech Saudi, which catalyst
for the development of the financial services technology (fintech) industry in Saudi Arabia.
Fintech Saudi aims to transform the Kingdom into an innovative fintech hub with a thriving
ecosystem driven by local and international stakeholders.

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Dubai International Finance Center

Dubai International Financial Centre (DIFC), a leading international financial hub

announced a USD$100 million FinTech-focused fund to investing in Fintech start-ups
from incubation through to growth stage.iii

Bahrain Fintech Bay

Bahrain’s Fintech Bay is a dedicated co-working space dedicated to attracting and

developing Fintech and particularly works with. Islamic FinTech’s in partnership with
leading Islamic finance institutions that operate in Bahrain and across the GCC.

Lack of Access

The World Bank Group conducted a study in 2016 on Sharia Compliant loans and the results of a study
indicated the biggest issue consumers face when searching for a Sharia Compliant loan is simply access to
loans that meet these characteristics.iv Our competitor analysis supports the study as GCC member
countries have no access to Sharia Compliant P2P loans at the consumer level.1 Further support is
prevalent within the percent of the population with access to banking. Core Islamic finance markets have
a larger percentage of the population without access to banking and thus loans.v

Unbanked Population as a Percent

Worldwide 49%

Core Islamic Finance Markets 72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

1
It is important to note one company, Beehive, is Sharia Compliant but only offers loans to medium to large
businesses.

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Market Segmentation

Finance Lender will promote their application within specific geographical regions. The application will
initially launch in the primary mature market of the United Kingdom. Only after the company grows,
matures and captures significant market share in the primary market will the company expand to other
major GCC member countries with large populations, targeting Saudi Arabia first within the GCC.

To narrow the target market down, the application will seek to target individuals who are 18 years of age
and meet certain requirements, as discussed below. The application needs to filter applicants so as to
reduce the default risk prevalent within the application. It is important to note that lenders will not have
specific requirements and can lend as little as USD$100.

General Requirements:

• Credit score of at least 640.

• Have a full time job or a full time job offer.
• Have a four year college degree.
• No previous bankruptcies.
• Less than 6 credit inquiries within the last 6 months.

Income Requirements:

• At least 3 recurring paycheck direct deposits from the same employer.

• Debt to income ratio below 16%.

Bank Requirements:

• Checking account needs to be at least 60 days old.

• Checking account needs sufficient activity to determine when to send and withdrawal funds.
• Checking account must be a single account. Will not accept joint accounts.
• Bank balance needs to be greater than USD$0.

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Strategy & Go-to-Market Summary
The overall strategy for Finance Lender will be to introduce a P2P lending platform that brings value to all
parties involved in the transaction. Additionally, we will strive to give our customers exceptional customer
service while remaining a fully Shariah compliant platform. The company will take several steps in
achieving success in the market, which can be detailed below.

Phase 1 – Implementing the White Label Technology

The first phase of the company’s life cycle will be the implementing the Finance Lender brand to our MVP
product. We will source our white labeling and ongoing consulting through White Label Crowdfunding –
a world leader in building fast, modular, scalable systems to help grow our business. It is important for
Finance Lender to ensure all functionality of the product is efficient and exceptional in quality before
putting our brand into the product. It is important the product is fully customized to be completely Sharia
compliant.

Phase 2 – Meeting Requirements

Once we have an initial prototype and legitimate working concept, we can then begin to acquire all
necessary requirements to operate in the industry, which include licenses, government approvals,
institution requirements and benchmarks while also making sure we are conforming with Shariah Law.
We will work with leading consultants and professionals to ensure we obtain all requirements for (but not
limited to):

• Full FCA authorization

• Appointed AR representation
• FMSA
• FCA Handbook
• Advertising Standard’s Authority
• Money Laundering Regulations 2007
• Consumer Credit Act 2002

In addition to ensuring we acquire all necessary licenses and meet all requirements and industry
benchmarks; ongoing dedication will be devoted to ensuring we are working closely with Shariah Law and
aligning these expectations with our product developments. We will appoint 2-3 board members who will
be responsible in ensuring we are and will remain Shariah compliant.

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Phase 3 – Creating Mass Brand Awareness in the Market

Once a viable product is ready to be launched and we are in compliant with all necessary requirements to
fully operate, the final phase of the initial go to market strategy for Finance Lender can be initiated - brand
awareness in the target market. Attracting customers to the platform will be one of the most important
strategies for Finance Lender and will be achieved through heavy investment in online advertising through
targeted ads and search engine optimization. Additional marketing and advertising tools will be used to
attract the customer to the platform, the webpage will be at the center of all marketing efforts as
generated leads will direct customers to our webpage where the can use our services. Stages of the
marketing plan will include:

1. Cold lead generation – LinkedIn, Facebook, Calling

2. Targeted Ads – Facebook, LinkedIn, Instagram
3. Pay-Per-Click – Google Ad words
4. Search Engine Optimization
5. Content lead generation
6. Networking – Conferences, Seminars, Tradeshows

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SWOT Analysis

Strengths

• Team of experienced and knowledgeable staff that have created long lasting relationships in the
industry.
• Management has multiple years of experience in fin-tech and tech related industry.
• Multiple competitive advantages in the features of the product.
• Delivering a product and service with exceptional value proposition to all parties involved
(borrower and the lender).

Weaknesses

• Development of software takes time and capital.

• Prevalent competition in the industry.
• Significant capital expenditures needed to acquire customers.
• High barriers to enter the market; must have a unique product or technology as well as substantial
backed capital.

Opportunities

• Huge opportunity in the GCC market – very little competitors that are Shariah Compliant.
• Ability to scale rapidly through a strong marketing campaign.
• Huge demand for affordable alternatives to payday loans, overdraft fees and banking loans.

Threats

• Concept can be copied from competitors with more resources.

• Low switching costs for the customer – difficult to create loyalty to the brand.
• More lucrative revenue models increase default risk.

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Competitive Comparison
The market that Finance Lender will compete in will consist of any form of P2P lending companies. Indirect
competitors will be P2P lending platforms outside of the target market as well as non-Sharia compliant
companies. Direct competitors to Finance Lender are companies that are both Sharia compliant and
operate in the GCC. Listed below are both the direct and indirect competitors to Finance Lender as well
as a description and accompanying characteristics.

Beehive is an SME helping other SMEs grow and develop. Beehive was
established using the simple aim of using technology to help small and
medium sized businesses overcome the challenges of finding finance to
fuel their growth. Beehive is MENA's first regulated platform for peer-to-peer lending. The company
directly connect businesses looking for finance with investors, building mutually beneficial partnerships
for growth. Beehive's platform applies the innovative technology of crowd funding to eliminate the cost
and complexity of conventional finance.

Variable Description

Servicing MENA Region

Sharia Compliant YES

Funding Received $15.5 Million

Management Structure • Chairman

• Founder
• CTO
• CFO
• 3 Sharia Board members

Pricing Structure • 10% Average ARR

(Investor) • 0.8% Monthly Average Invoice Finance Returns

Pricing Structure • 2-4% on principal amounts and payments for both business and
(Beehive) investors.

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 liwwa is a peer-to-peer lending network, which connects borrowers to investors
by creating an online credit marketplace. Borrowers can access capital while
investors earn regular monthly returns on their investments. liwwa serves two
primary customer bases: investors and borrowers.

Variable Description

Servicing Jordan

Sharia Compliant YES

Funding Received $5 Million and seeking another $5 Million next year.

Management Structure • Software Developer

• Head of Sales
• Chief of Staff
• Senior Relations Manager
• Chief Data Scientist
• Account Officer
• Financial Analyst
• Control Officer
• Business Developer
• Credit Officer
• Account Manager
• Finance Director
• CEO

Pricing Structure (Investor) • Low Risk: 16.6% IRR | 7.47% Annual Return
• Medium Risk: 19.55% IRR | 9.01% Annual Return
• Loan Tenors: 9-18 months

Pricing Structure (Liwwa) • 2% account service fee for every repayment the small business
makes.

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 Ablrate is an FCA-regulated P2P lending platform, which has originated
over £44 million of loans, returned more than £10 million in interest and
capital, and attracted £8 million into their IFISA. Ablrate offer some of the
largest returns in the P2P sector and offer a somewhat different type of loan relative to the competition,
with the assets often being business assets as opposed to property.

Variable Description

Servicing United Kingdom

Sharia Compliant NO

Funding Received GBP 950 – seeking additional 350GBP

Management Structure • CEO

• Customer Services Director
• Director
• PR & Marketing Manager
• Director of Business Development
• Business Development Manager
• Non-Executive Director

Pricing Structure (Investor) • Average returns: 10-15%

• Default Rate: 0.50%

Pricing Structure (Ablrate) • 1-2% account service fee for every repayment the small business
makes.

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 FinBee is an online p2p lending and investing platform. Since launching in
Lithuania in 2015, FinBee’s goal is to find solvent borrowers and to provide
solid returns to investors. FinBee is listed in Bank of Lithuania’s consumer
loan providers list, p2p lending platform operators list, e-money license
holders list. FinBee is also included in Lithuania’s Personal Data Controller’s public register.

Variable Description

Servicing Europe – Lithuania

Sharia Compliant No

Funding Received N/A

Management Structure • CEO

• CFO
• COO
• Lawyer
• Head of Sales
• Project Manager
• Service Desk Specialist
• Business Client Manager
• Head of Marketing
• IT Specialist

Pricing Structure (Investor) • Average Return Rate: 15%

• Minimum loan amount of EUR 5

Pricing Structure (FinBee) • 1% commission on portfolios.

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Marketing Plan

Marketing Overview

The marketing plan for Finance Lender will consist of several different strategies to generate brand
awareness and attract customers to our platform in our target market. The following marketing plan was
conducted on the basis of discovering the most logical and feasible advertising strategies for acquiring our
customers. Customer acquisition costs will be a key component in the marketing plan and will be closely
monitored with the overall marketing budget.

Pricing Strategy

Finance Lender will position our pricing strategy as a value-added pricing strategy. The goal of our pricing
strategy is to add value to everyone involved in the transaction, ensuring customers see value using our
platform and consistently use our service. The pricing strategy will take a 2-4% origination fee dependent
on loan amount size. Larger loans will have a lower origination fees while the opposite holds true for
smaller loans. 87.5% of the origination fee paid to Finance Lender and 12.5% of origination fee paid to
the credit bureau. For example: 4% origination fee would equate to 3.5% to Finance Lender and 0.5% to
the Credit Bureau. As well, a minimum origination fee of USD$25 will be charged.

Advertising & Promotion Strategy

Website/E-Commerce

The website will be maintained by our professional team and will tell the story behind Finance Lender
brand as well as promote our products and services. Customers will be able to easily navigate through the
website, understand how the platform works, easily search for the loan that best suits them and easily
sign up and apply for the service. Search engine optimization will be integrated into the website so that
the company shows up first when users search for related queries. The website will be at the center of all
marketing efforts as customers will be directed to the website to use our platform. It is extremely
important that the website is maintained as professional, easy to use and visually appealing for the
customers.

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Lead Generation - Targeted Ads

Targeted ads will be used through Facebook and LinkedIn to generate leads in the early stages of the
company’s marketing efforts. Using these platforms allows us to accurately advertise to our target market
to attract them to our platform. Especially in the early stages of the marketing will this section be
important for us to initially introduce the business.

Social Media

Social media will be a significant portion of the advertising strategy for Finance Lender. Social media
platforms such as Facebook, Instagram, Twitter and YouTube allow the company to advertise directly to
the target audience and track progress at a relatively inexpensive cost. Social media platforms are also an
effective way to create a following behind the brand, tracking popular trends and promotions with the
brand.

Pay-Per-Click

The pay-per-click strategy of Finance Lender will be used through Google Shopping/Ad Words. This
platform allows us to reach the target market while tracking a strict budget plan. Pay-per-click advertising
is an efficient way to target our demographic and drive traffic through search engines. Google. Pay-per-
click advertising is an Internet advertising model used to drive traffic to our website, this form of
advertising is commonly associated with first tier search engines. Pay-per-click advertising will be an
integral advertising platform for generating leads and traffic to our website.

Partnership Programs

Finance Lender will seek to secure strategic relationship with key industry leaders in order the market.
Direct channel partnership programs will be in place to help better serve the client – providing insight to
consumer trend and buying patterns while also creating incentive to our partners

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Financial Forecasts

Use of Funds

Startup Expenses Post Financing Liabilities

Legal and Compliance $30,000 Loan $0
Research and Development $18,750 Mortgage $0
Sales and Marketing $36,000 Other Bank Debt $0
Salaries and Wages $150,000 Total Liabilities $0
Misc SG&A $70,000
Post Financing Investments
Working Capital $510,250
Total Startup Expenses $815,000 Owner $0
Investor $1,000,000
Startup Assets
Total Investments $1,000,000
Furniture and Fixtures $15,000
Post Financing Funding
Office Equipment $20,000
Application Development $150,000 Total Liabilities $0
Total Startup Assets $185,000 Total Planned Investment $1,000,000
Total Funding $1,000,000
Total Requirements
Total Startup Expenses $815,000
Total Startup Assets $185,000
Total Requirements $1,000,000

Finance Lender- Business Plan 23

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Financial Highlights

Financial Highlights
2019 2020 2021 2022 2023 5 years
Revenue 547,601 1,466,240 3,200,876 5,914,258 9,462,649 20,591,624
Gross profit 547,601 1,466,240 3,200,876 5,914,258 9,462,649 20,591,624
EBITDA -955,927 -96,841 1,172,911 3,169,261 5,785,421 9,074,825
Net Income -959,427 -100,341 923,835 2,500,951 4,567,718 6,932,735

Gross margin 100% 100% 100% 100% 100% 100%

EBITDA margin -175% -7% 37% 54% 61% 44%
Profit margin -175% -7% 29% 42% 48% 34%

5,000,000 100%

4,000,000
50%

3,000,000

0%

2,000,000

-50%

1,000,000

-100%

0
2019 2020 2021 2022 2023

-150%
-1,000,000

-2,000,000 -200%

Net Income Profit margin

Finance Lender- Business Plan 24

Strictly Confidential
Projected Profit & Loss

Pro Forma Income Statement

(expressed in USD)
For the years ended December 31,
2020 2021 2022 2023 2024
Revenue 547,601 1,466,240 3,200,876 5,914,258 9,462,649
Cost of goods sold - - - - -
Gross margin 547,601 1,466,240 3,200,876 5,914,258 9,462,649
Expenses
Running Expenses
License Renewal & Legal Retainer 1,460 1,460 1,460 1,460 1,460
Premises Rent Expense 35,028 35,028 35,028 35,028 35,028
Utilities Expense Electricity, Internet, Phone 26,270 26,270 26,270 26,270 26,270
Kitchen Expense 6,130 6,130 6,130 6,130 6,130
MISC Expense 8,756 8,756 8,756 8,756 8,756
Staff Onboarding Expense
Insurance Expense 19,265 19,265 19,265 19,265 19,265
Transport 9,632 9,632 9,632 9,632 9,632
Schooling 9,632 9,632 9,632 9,632 9,632
Infrastructure Setup Cost
Rent Security Deposit 23,352 - - - -
Agent Commission 3,502 - - - -
Utility Set Up / Security Deposit 730 - - - -
Others - Misc 14,960 - - - -
Salaries and wages 625,000 753,375 772,209 791,515 811,302
Technology/Application Development 150,000 75,000 75,000 75,000 75,000
Research and Development 75,000 37,500 37,500 37,500 37,500
Legal, License and Compliance Fees 210,000 60,000 60,000 60,000 60,000
Credit Bureau 140,812 377,033 823,082 1,520,809 2,433,253
Sales and Marketing 144,000 144,000 144,000 144,000 144,000
Total Expenses 1,503,529 1,563,081 2,027,965 2,744,997 3,677,228
EBITDA (955,927) (96,841) 1,172,911 3,169,261 5,785,421
Depreciation and amortization expense 3,500 3,500 3,500 3,500 3,500
Interest expense - - - - -
Earnings (loss) before taxes (959,427) (100,341) 1,169,411 3,165,761 5,781,921
Income taxes - - 245,576 664,810 1,214,203
Net income (loss) (959,427) (100,341) 923,835 2,500,951 4,567,718

Revenue by Month
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Finance Lender- Business Plan 25

Strictly Confidential
Sensitivity Analysis

Best Case Scenario (Revenues Increased by 15%)

(expressed in USD)
For the years ended December 31,
2020 2021 2022 2023 2024
Revenue 629,741 1,686,176 3,681,007 6,801,396 10,882,047
Cost of goods sold - - - - -
Gross margin 629,741 1,686,176 3,681,007 6,801,396 10,882,047
Expenses
General and administrative 734,529 665,706 1,111,755 1,809,482 2,721,926
Salaries and wages 625,000 753,375 772,209 791,515 811,302
Sales and advertising 144,000 144,000 144,000 144,000 144,000
EBITDA (873,787) 123,095 1,653,042 4,056,400 7,204,819
Depreciation and amortization expense 3,500 3,500 3,500 3,500 3,500
Interest expense - - - - -
Earnings (loss) before taxes (877,287) 119,595 1,649,542 4,052,900 7,201,319
Income taxes - - 245,576 664,810 1,214,203
Net income (loss) (877,287) 119,595 1,403,966 3,388,090 5,987,115

Worst Case Scenario (Revenues Decreased by 15%)

(expressed in USD)
For the years ended December 31,
2020 2021 2022 2023 2024
Revenue 465,461 1,246,304 2,720,744 5,027,119 8,043,252
Cost of goods sold - - - - -
Gross margin 465,461 1,246,304 2,720,744 5,027,119 8,043,252
Expenses
General and administrative 734,529 665,706 1,111,755 1,809,482 2,721,926
Salaries and wages 625,000 753,375 772,209 791,515 811,302
Sales and advertising 144,000 144,000 144,000 144,000 144,000
EBITDA (1,038,068) (316,777) 692,780 2,282,122 4,366,024
Depreciation and amortization expense 3,500 3,500 3,500 3,500 3,500
Interest expense - - - - -
Earnings (loss) before taxes (1,041,568) (320,277) 689,280 2,278,622 4,362,524
Income taxes - - 245,576 664,810 1,214,203
Net income (loss) (1,041,568) (320,277) 443,703 1,613,813 3,148,320

Finance Lender- Business Plan 26

Strictly Confidential
Projected Cash Flow

Pro Forma Statement of Cash Flows

(expressed in USD)
For the years ended December 31,
2020 2021 2022 2023 2024
Cash provided from (used in):
CASH FLOW FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss) (959,427) (100,341) 923,835 2,500,951 4,567,718
Adjustments for:
Depreciation and amortization 3,500 3,500 3,500 3,500 3,500
(Increase)/decrease in accounts receivable (70,682) (106,024) (176,706) (265,059) (309,236)
(Increase)/decrease in inventory - - - - -
(Increase)/decrease in prepaid expenses (3,593) (5,390) (8,983) (13,474) (15,719)
Increase/(decrease) in accounts payable 70,682 106,024 176,706 265,059 309,236
(959,520) (102,231) 918,352 2,490,977 4,555,498
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES:
Issuance of debt - - - - -
Issuance of share capital 1,500,000 - - - -
Repayment of debt - - - - -
1,500,000 - - - -
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES:
Additions to capital assets (35,000) - - - -
(35,000) - - - -

Change in cash 505,480 (102,231) 918,352 2,490,977 4,555,498

Cash. Beginning of year - 505,480 403,249 1,321,601 3,812,578
Cash, end of year 505,480 403,249 1,321,601 3,812,578 8,368,077

Cummulative Cash Balance

9,000,000

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

-
2020 2021 2022 2023 2024

Finance Lender- Business Plan 27

Strictly Confidential
Projected Balance Sheet

Pro Forma Balance Sheet

(expressed in USD)
For the years ended December 31, O
p 2020 2021 2022 2023 2024
ASSETS
Current assets
Cash 505,480 403,249 1,321,601 3,812,578 8,368,077
Accounts receivable 70,682 176,706 353,412 618,472 927,708
Prepaid expenses 3,593 8,983 17,965 31,439 47,158
Long term assets
PPE, net 31,500 28,000 24,500 21,000 17,500
Total Assets 611,255 616,938 1,717,479 4,483,489 9,360,443

LIABILITIES
Current liabilities
Account payable 70,682 176,706 353,412 618,472 927,708
Current portion of long term debt - - - - -
Long term liabilites
Long term loan - - - - -
Total liabilites 70,682 176,706 353,412 618,472 927,708
SHAREHOLDER'S EQUITY
Owner's equity 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Retained earnings (959,427) (1,059,769) (135,934) 2,365,017 6,932,735
Total shareholder's equity 540,573 440,231 1,364,066 3,865,017 8,432,735
Total liabilites and shareholder's equity 611,255 616,938 1,717,479 4,483,489 9,360,443

Finance Lender- Business Plan 28

Strictly Confidential
Break-Even Analysis

Break Even Analysis

Number of Loans Revenue Fixed Costs (FC) Variable Cost (VC) Total Cost (FC+VC) Net Profit
0 0 1,507,029 0 1,507,029 (1,507,029)
1,000 262,500 1,507,029 0 1,507,029 (1,244,529)
2,000 525,000 1,507,029 0 1,507,029 (982,029)
3,000 787,500 1,507,029 0 1,507,029 (719,529)
4,000 1,050,000 1,507,029 0 1,507,029 (457,029)
5,000 1,312,500 1,507,029 0 1,507,029 (194,529)
6,000 1,575,000 1,507,029 0 1,507,029 67,971
7,000 1,837,500 1,507,029 0 1,507,029 330,471
8,000 2,100,000 1,507,029 0 1,507,029 592,971
9,000 2,362,500 1,507,029 0 1,507,029 855,471
10,000 2,625,000 1,507,029 0 1,507,029 1,117,971
11,000 2,887,500 1,507,029 0 1,507,029 1,380,471
12,000 3,150,000 1,507,029 0 1,507,029 1,642,971

Break Even Analysis

2,000,000

1,500,000

1,000,000
Cost-Volume-Profit

500,000

(500,000)

(1,000,000)

(1,500,000)

(2,000,000)
0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Net Units

Finance Lender- Business Plan 29

Strictly Confidential
Financial Indicators

Ratio Analysis
2020 2021 2022 2023 2024
Liquidity ratios
Current 8.20 3.33 4.79 7.22 10.07
Quick 8.20 3.33 4.79 7.22 10.07
Acid Test 8.15 3.28 4.74 7.16 10.02
Activity ratios
Account receivable turnover 11.35 11.85 12.08 12.17 12.24
Total asset turnover 0.90 2.38 1.86 1.32 1.01
Profitability ratios
Gross margin 100% 100% 100% 100% 100%
Operating margin -175% -7% 37% 54% 61%
Net profit margin -175% -7% 29% 42% 48%
Return on assets -157% -16% 54% 56% 49%
Return on equity -177% -23% 68% 65% 54%
Leverage
Debt to equity 0.13 0.40 0.26 0.16 0.11
Debt to assets 0.12 0.29 0.21 0.14 0.10

150%

100%

50%

0%
2019 2020 2021 2022 2023

-50%

-100%

-150%

-200%

Gross margin Operating margin Net profit margin

Finance Lender- Business Plan 30

Strictly Confidential
Appendix
Pro Forma Statement of Cash Flows
(expressed in USD)
For the years ended December 31,
2020
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash provided from (used in):
CASH FLOW FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss) (215,850) (81,437) (79,388) (77,143) (74,682) (71,986) (69,031) (65,793) (62,244) (58,356) (54,094) (49,424)
Adjustments for:
Depreciation and amortization 292 292 292 292 292 292 292 292 292 292 292 292
(Increase)/decrease in accounts receivable (25,820) (2,475) (2,713) (2,973) (3,258) (3,570) (3,912) (4,288) (4,699) (5,149) (5,643) (6,184)
(Increase)/decrease in inventory - - - - - - - - - - - -
(Increase)/decrease in prepaid expenses (1,313) (126) (138) (151) (166) (181) (199) (218) (239) (262) (287) (314)
Increase/(decrease) in accounts payable 25,820 2,475 2,713 2,973 3,258 3,570 3,912 4,288 4,699 5,149 5,643 6,184
(216,871) (81,271) (79,234) (77,002) (74,556) (71,876) (68,938) (65,719) (62,192) (58,326) (54,089) (49,447)
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES:
Issuance of debt - - - - - - - - - - - -
Issuance of share capital 1,000,000 - - - - - 500,000 - - - - -
Repayment of debt - - - - - - - - - - - -
Distributions - - - - - - - - - - - -
1,000,000 - - - - - 500,000 - - - - -
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES:
Additions to capital assets (35,000) - - - - - - - - - - -
(35,000) - - - - - - - - - - -

Change in cash 748,129 (81,271) (79,234) (77,002) (74,556) (71,876) 431,062 (65,719) (62,192) (58,326) (54,089) (49,447)
Cash. Beginning of year - 748,129 666,858 587,624 510,622 436,066 364,190 795,252 729,533 667,341 609,015 554,926
Cash, end of year 748,129 666,858 587,624 510,622 436,066 364,190 795,252 729,533 667,341 609,015 554,926 505,480

Finance Lender- Business Plan 31

Strictly Confidential
Pro Forma Income Statement
(expressed in USD)
For the year ended December 31,
2020
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Revenue 26,250 28,767 31,525 34,547 37,859 41,489 45,466 49,825 54,602 59,837 65,574 71,861
Cost of goods sold - - - - - - - - - - - -
Gross margin 26,250 28,767 31,525 34,547 37,859 41,489 45,466 49,825 54,602 59,837 65,574 71,861
Expenses
Running Expenses
License Renewal & Legal Retainer 122 122 122 122 122 122 122 122 122 122 122 122
Premises Rent Expense 2,919 2,919 2,919 2,919 2,919 2,919 2,919 2,919 2,919 2,919 2,919 2,919
Utilities Expense Electricity, Internet, Phone 2,189 2,189 2,189 2,189 2,189 2,189 2,189 2,189 2,189 2,189 2,189 2,189
Kitchen Expense 511 511 511 511 511 511 511 511 511 511 511 511
MISC Expense 730 730 730 730 730 730 730 730 730 730 730 730
Staff Onboarding Expense
Insurance Expense 1,605 1,605 1,605 1,605 1,605 1,605 1,605 1,605 1,605 1,605 1,605 1,605
Transport 803 803 803 803 803 803 803 803 803 803 803 803
Schooling 803 803 803 803 803 803 803 803 803 803 803 803
Infrastructure Setup Cost
Rent Security Deposit 23,352 - - - - - - - - - - -
Agent Commission 3,502 - - - - - - - - - - -
Utility Set Up / Security Deposit 730 - - - - - - - - - - -
Others - Misc 14,960 - - - - - - - - - - -
Salaries and Wages 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083 52,083
Technology/Application Development 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500
Research and Development 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250
Legal, License and Compliance Fees 100,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Credit Bureau 6,750 7,397 8,106 8,883 9,735 10,669 11,691 12,812 14,041 15,387 16,862 18,478
Sales and Marketing 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Total Expenses 241,808 109,912 110,621 111,398 112,250 113,183 114,206 115,327 116,555 117,901 119,376 120,993
EBITDA (215,558) (81,145) (79,096) (76,851) (74,391) (71,694) (68,739) (65,501) (61,953) (58,064) (53,802) (49,132)
Depreciation and amortization expense 292 292 292 292 292 292 292 292 292 292 292 292
Interest expense - - - - - - - - - - - -
Earnings (loss) before taxes (215,850) (81,437) (79,388) (77,143) (74,682) (71,986) (69,031) (65,793) (62,244) (58,356) (54,094) (49,424)
Income taxes - - - - - - - - - - - -
Net income (loss) (215,850) (81,437) (79,388) (77,143) (74,682) (71,986) (69,031) (65,793) (62,244) (58,356) (54,094) (49,424)

Finance Lender- Business Plan 32

Strictly Confidential
References

i
https://www.statista.com/statistics/325902/global-p2p-lending/
ii
https://www.statista.com/outlook/399/100/alternative-lending/worldwide#market-globalRevenue
iii
https://www.difc.ae/newsroom/news/difc-launches-usd-100-million-fintech-fund/
iv
https://openknowledge.worldbank.org/bitstream/handle/10986/24569/Understanding00experiment0in0Jordan.
pdf?sequence=1&isAllowed=y
v
https://www.dinarstandard.com/wp-content/uploads/2018/12/Islamic-Fintech-Report-2018.pdf

Finance Lender- Business Plan 33

Strictly Confidential