News from the Wire

AmeriMerchant launches cash advance servicing and wind-down program

Monday, June 29, 2009 — 11:37:47 (EDT)

New York, June 29, 2009 -- AmeriMerchant (www.amerimerchant.com ), a leading provider of merchant cash advances since 2002, announced today that it has launched its Merchant Cash Advance Portfolio Servicing And Wind-Down Program. This newly available program is designed to assist merchant cash advance providers and/or their lenders, preserve their capital, reduce fixed overhead and receive additional revenue on renewal advances.

“This innovative servicing and wind-down program is designed to preserve the capital of existing merchant cash advance portfolios using AmeriMerchant’s back office services and technology,” says David Goldin, President and CEO of AmeriMerchant LLC. “For MCA Providers and/or their credit providers looking to exit the business, our new program eliminates the need to sell merchant cash advance portfolios at deep discounts and eliminates fixed portfolio servicing overhead. Our new program also works well with ISOs / companies that fund MCAs and looking to stay in the merchant cash advance business but eliminate their fixed overhead associated with their MCA program.”

The merchant cash advance marketplace saw many companies enter the merchant cash advance space in the last two years and sustain unmanageable losses to their portfolio. Coupled with a down economy and a freeze in the credit markets, many credit line providers have forced merchant cash advance companies to liquidate their portfolios, often at steep discounts.

AmeriMerchant's best of class back office infrastructure and technology allows the company to efficiently serve as a cost effective, outsourced back office for MCA portfolios. With over 7 years of industry experience, AmeriMerchant is able to generate additional revenue for clients in our servicing program by providing future renewal merchant fundings without requiring additional capital outlay by the original MCA provider or its provider of capital.

For more information on this new service, contact David Goldin at (212) 779-2100, ext 102 or portfolios@amerimerchant.com.

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Source: Company press release.