Franklin Capital Network“Our Business is Growing Yours”

About Franklin Capital Network•EXPERIENCE MATTERS

–Franklin Capital has been helping small to medium-sized businesses with commercial financing programs for more than 20 years.

• Funding companies that cannot access adequate bank credit.• Customized credit accommodations tailored to meet client needs for broad range of industries.• Credit facilities up to $10 Million.

–Management team has extensive experience in financial service industry including Asset Based Lending and A/R purchase programs.

•REDUCE YOUR STRESS–Quick (same day) decision making–Save money through faster collections and reduced credit losses–Full transparency providing online real time client accounts receivable status reports 24 hours every day–Highly skilled and experienced account managers dedicated to your account–Straight forward understandable pricing (no hidden or unanticipated fees)

Freed of credit and collection concerns, clients can focus their energies on expanding their businesses.

Freed of credit and collection concerns, clients can focus their energies on expanding their businesses.

Our Financing Programs

Inventory

• Inventory financing

Purchase order

• Purchase order financing• Letters of credit• Trade finance

* Combination of financing programs customized to meet client needs

Equipment

• Term loans for - Equipment- Real estate

• Equipment leasing

Accounts Receivable

• A/R purchasing programs, including factoring

• A/R financing• A/R management

Accounts Receivable Program • DETAILS– Franklin Capital Network advances between 80-90% of invoices with same

day funding. – Franklin’s Receivables Management Group handles processing from the

time a client issues an invoice through collection, eliminating the need for credit, collection and account staff.

– Franklin provides our clients with secure, on-line access to account status reports in real time, 24 hours a day.

• ADVANTAGES– Certainty of funding from Franklin enhances clients’ flexibility and

profitability.– Clients are able to take advantage of special opportunities such as supplier

discounts for prompt payment.– Franklin’s Accounts Receivable Program saves clients money with faster

collection turnaround and enhanced credit management.– With Franklin’s Accounts Receivable Program clients are able to fund

growth and acquisitions, including leveraged buyouts.

PEACE OF MINDPEACE OF MIND

We maximize our clients’ potential while reducing

their stress.

We maximize our clients’ potential while reducing

their stress.

Accounts Receivable Case StudyTEXTILE AND APPAREL MANUFACTURER, CA

CHALLENGE:• A textile and apparel manufacturer required credit accommodations to keep

from shutting down. The national corporate finance company that had been providing factoring services began experiencing financial stress itself, and could no longer provide adequate working capital.

• The manufacturer was forced to find an alternate source of immediate financing.

SOLUTION:• In March 2009, Franklin provided a stitch in time - $1.3Million in credit

accommodations.

RESULTS:• The manufacturer paid off the national corporate finance company.• Resumed normal business operations with newfound financial stability.

“Franklin took the time to

understand our needs as soon as

we started working with

them.”

President

“Franklin took the time to

understand our needs as soon as

we started working with

them.”

President

Purchase Order Program• DETAILS

– The Franklin Capital Purchase Order Finance Program funds up to 100% of the cost of pre-sold inventory.

– Our Purchase Order Program is an incremental source of capital that augments traditional lending.

• ADVANTAGES– This credit program allows a client to purchase inventory

without drawing on it’s bank line of credit.– Franklin structures Purchase Order accommodations to

facilitate international trade transactions for clients.– Franklin expedites the issuance of Letters of Credit that

most foreign manufacturers (and some domestic manufacturers) require before beginning production or shipment.

– Prior to shipment, Franklin arranges for the inspection of goods anywhere in the world. This service ensures product quality and full compliance with customers’ purchase orders.

HOW FRANKLIN CAPITAL’S PROGRAM AUGMENTS BANK

FINANCING:

HOW FRANKLIN CAPITAL’S PROGRAM AUGMENTS BANK

FINANCING:

• Franklin provides funds for inventory in transit.•Clients can purchase

inventory, without drawing on their bank line of credit.

• Franklin provides funds for inventory in transit.•Clients can purchase

inventory, without drawing on their bank line of credit.

Purchase Order Case StudyGAME BOARD DISTRIBUTOR, CA

CHALLENGE:• CA based game board distributor was short of working capital, which limited its

opportunities for growth. In addition, its overseas supplier relationships were becoming increasingly difficult, because of slow payments.

SOLUTION:• This distributor turned to Franklin for a combination of Accounts Receivable and

Purchase Order financing. • Franklin provided a Letter of Credit to the Distributor’s vendor that incorporated

product specifications, delivery conditions and quality control requirements, thus helping control risk.

RESULTS:• Franklin’s financing enabled this distributor to diversify their product offerings and

thrive.• Franklin’s Purchase Order Program allowed the distributor, through Letters of Credit

issued to its suppliers, to make its payments contingent on the performance of its suppliers; therefore, substantially mitigating a significant risk for the distributor.

“When our competitors see us growing, they often ask us how we have grown so quickly. We are only 8 years old. They ask us

how this is possible. It’s all due to working with Franklin.”

President

“When our competitors see us growing, they often ask us how we have grown so quickly. We are only 8 years old. They ask us

how this is possible. It’s all due to working with Franklin.”

President

Equipment ProgramDETAILS:• Franklin Capital provides Equipment Financing and Leasing to our

Accounts Receivable Purchase clients. This service enables a company to obtain financing or refinancing based on the value of its machinery and equipment.

ADVANTAGES:• By financing up to 100% of the equipment costs, clients conserve

working capital.– Preservation of working capital– Preservation of client’s credit lines– 100% total financing– Leasing provides tax benefits– Versatility (e.g., taking advantage of profitable opportunities,

responding to emergencies)

“Franklin customizes the

protocol for customer needs.

They eased up our cash flow

situation with a seamless

integration of complimentary

credit programs.”

President, CA based Home Furnishings

Manufacturer

“Franklin customizes the

protocol for customer needs.

They eased up our cash flow

situation with a seamless

integration of complimentary

credit programs.”

President, CA based Home Furnishings

Manufacturer

Equipment Case StudyMASS MAILING COMPANY, IL

CHALLENGE:• A mass mailing company based in Illinois required credit accommodations

to finance the acquisition of assets that were being sold by a trustee during the liquidation of assets of a predecessor in the context of an Assignment for the Benefit of Creditors.

SOLUTION:• Franklin Capital Network provided $1.9 Million for the company to

consummate the acquisition of the assets and requisite working capital; and, subsequently, provided an additional $500,000 for the acquisition of additional mailing equipment.

RESULTS:• Working with Franklin enabled this mass mailing company to resurrect

their business and achieve 29% sales growth and meaningful profitability, even with tight cash flow during a period when many mass mailing companies closed their doors.

“We were in a difficult position as a Start-Up

trying to obtain financing through

traditional sources. Franklin was willing to

take a chance on us and help our cash

flow. Franklin has had a tremendous impact on our being able to grow and prosper.”

President

“We were in a difficult position as a Start-Up

trying to obtain financing through

traditional sources. Franklin was willing to

take a chance on us and help our cash

flow. Franklin has had a tremendous impact on our being able to grow and prosper.”

President

Inventory ProgramDETAILS:• Franklin Capital provides inventory loans to its Accounts Receivable

Program clients. We can advance up to 50% of the cost of a client’s inventory.

ADVANTAGES:• Inventory financing increases a client’s flexibility in the marketplace

and addresses seasonal sales requirements. Coupled with Accounts Receivable financing Franklin’s Inventory Financing Program enables a client to generate sufficient funds to achieve its performance goals.

“Franklin has a source of money that is consistent and they manage

their portfolio properly. It’s a

very secure feeling and you need that in this

economy.”

President, IL based frozen

food distributor

“Franklin has a source of money that is consistent and they manage

their portfolio properly. It’s a

very secure feeling and you need that in this

economy.”

President, IL based frozen

food distributor

Inventory Case StudyCRAFT GOODS DISTRIBUTOR, IL

CHALLENGE:• A once thriving craft goods distributor was suffocating under the weight of its

massive inventory in a sluggish economy.• Their bank cancelled the company’s line of credit, leaving them on the brink of

shutting their doors.

SOLUTION:• Recognizing the strength of the company’s assets, Franklin provided credit

accommodations of over $500,000 on inventory and $600,000 on receivables to meet daily cash flow while the company transformed its core business.

RESULTS:• In the two years working with Franklin, the company has gone from impending

closure to reinventing themselves and prospering in a time of economic turmoil.

“Franklin Capital’s

Management Team knows a lot

more about business than

normal bankers. They allowed us

to stay alive.”

President

“Franklin Capital’s

Management Team knows a lot

more about business than

normal bankers. They allowed us

to stay alive.”

President

Franklin Capital Network Advantages Vs. Bank Financing

Our Promise to Our Clients

•OUR PROMISE TO OUR CLIENTS–We are willing to work with clients in challenging situations–We will structure innovative financial solutions for a client’s specific requirements–Our seasoned account managers will understand the unique needs of a client’s business–We will communicate clearly and honestly, and answer phone calls and e-mail requests promptly–Our pricing is always clear and understandable – no hidden fees, no surprises–Our financial records will be 100% transparent–Our clients’ success is Franklin Capital’s goal