Online Small Business Lender

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Online Small Business Lender

Corporate Presentation

June 2015

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Forward-Looking Statements

Statements made in this presentation that describe the IOU Financial’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions or projections of the future may be“forward-looking statements”, which can be identified by the use of the conditional or forward-looking terminology such as “anticipates”, “believes”, “estimates”, “expects”, “may”, “plans”, “projects”, “should”, “will”, or the negative thereof or other variations thereon. IOU Financial cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes.

Many factors and assumptions could have an impact on the materialization of the company’s projections, including, but not limited to, liquidity risks, risks inherent in growing a new business, dependence on third-party service providers, credit risks, competition, regulatory risk, and other factors that are beyond its control. IOU Financial cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that would cause thecompany’s actual results to differ from current expectations, please refer to the section “Risks and Uncertainties” of IOU Financial’s most recent Management’s Discussion and Analysis, which may be consulted at www.sedar.com (“MD&A). The forward-looking statements presented in the MD&A reflect IOUFinancial’s expectations as at the date of the MD&A. IOU Financial does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation.

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Who We Are…

Company Description:

Based in Montreal with sales and operations in Atlanta, IOU Financial (TSX-V: IOU) operates an Internet-based lending platform aimed at store-front businesses across the U.S.

Strategic Partnership:

Quick Facts:

• 62 full-time employees as of March-31-2015;

• US$31.2M in loan origination during the quarter ended March, 31 2015;

• Quarter over quarter loan origination growth rate of 53%;

• No. 32 On The 2014 PROFIT 500 List Of Canada's Fastest Growing Companies.

Market Capitalization (March-31-2015): $21.5M

Shares (as of March-31-2015):

Shares Outstanding 53.7 Million

Warrants 1.0 Million

Options 4.7 Million

Total Shares Fully Diluted 59.4 Million

Shareholders:

Insider Ownership: 9.1 Million

Public Ownership: 44.6 Million

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What We Do

 IOU makes working capital loans of up to $150k to small businesses across the U.S.

 Loans are repaid daily and have 6, 9 or 12 month terms

 Customers can go through a 10 minute online application, receive a credit qualification

decision within seconds, and funding in less than one day

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Data

Collection

D

_D

D

Data

Transformation

Models

Answer

How We Do It

…

IOU

SCORES

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Multi-Channel Loan Origination

Retail

Referral

Wholesale

Borrowers are sourced through

direct marketing campaigns.

Borrowers are sourced via

relationships with third-party

business loan brokers.

Borrowers are sourced via various

partnerships with third parties

that refer customers to IOU.

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Funding Model

_{US Small Business}

Borrowers

IOU Financial

(Loan Portfolio)

Fund 2

Fund 3

Fund 1

Investors

Promissory Notes $ $ $ $ Assignment of Loans (Non-recourse) Assignment of Loans (Non-recourse) Assignment of Loans (Non-recourse)

Returns Returns Returns

$ $ $

Credit

Facility

Interest $

(Servicing Portfolio)

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Strong Growth in Loan Originations

Quarter over quarter loan origination growth rate of 53%

$20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2012 2013 2014 Q1 2015

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Growing Loans Under Management

$10,000,000.00 $20,000,000.00 $30,000,000.00 $40,000,000.00 $50,000,000.00 $60,000,000.00 $70,000,000.00 $80,000,000.00 2012 2013 2014 Q1 2015

Loans Under Management ($CDN)

Principal Balance of Servicing Portfolio (Servicing Segment)

Principal Balance of Loan Portfolio (Lending Segment)

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Provisional Loss Rate

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 2012 2013 2014 Q1 2015

Provisional Loss Rate Average Provisional Loss Rate

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Net Financial Income Before OPEX (Net Revenue)

$1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 2012 2013 2014 Q1 2015

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Net Profit

$(2,000,000.00) $(1,800,000.00) $(1,600,000.00) $(1,400,000.00) $(1,200,000.00) $(1,000,000.00) $(800,000.00) $(600,000.00) $(400,000.00) $(200,000.00) $-2012 2013 2014 Q1 2015

Net Profit

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Demand Driver

Micro Business Loans

represent a massively

under-served market

segment.

Bank retrenchment

from small business

lending has created a

very large funding gap.

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Q

uote from Karen Gordon Mills, Senior Fellow at Harvard Business School and at Harvard Kennedy School,

September 2014:

“ALTERNATIVE PLAYERS HAVE THE POTENTIAL TO FUNDAMENTALLY CHANGE THE WAY IN WHICH SMALL

BUSINESSES ACCESS CAPITAL”

Statistic from the FDIC, January 2015:

THERE WERE $177.4 BILLION IN COMMERCIAL AND INDUSTRIAL LOAN BALANCES AT FDIC-INSURED INSTITUIONS

UNDER $250,000 IN THE UNITED STATES AS OF THE THIRD QUARTER 2014 ACROSS 21.8 MILLION LOANS.

Estimate from Oliver Wyman, a management consulting firm and business unit of Marsh & McLennan, 2013:

OLIVER WYMAN ESTIMATES THAT THERE IS A POTENTIAL $80 TO $120 BILLION IN UNMET DEMAND IN THE U.S. FOR

SMALL BUSINESS LINES OF CREDIT.

Statistic from Federal Reserve Bank of New York, Small Business Credit Survey , May 2013:

NEARLY 70% OF SMALL BUSINESSES ARE IN NEED OF LESS THAN $250,000.

Statement from The Small Business Administration, November 2012:

“DESPITE BEING THE BEDROCK OF THE AMERICAN ECONOMY, THE SMALL BUSINESS COMMUNITY IS UNDERSERVED

AND REPRESENTS A VALUE OPPORTUNITY FOR INVESTORS.”

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Leadership

Robert Gloer, COO over 20 years of experience in lending (First Franklin, a subsidiary of Merrill Lynch).



Managed by an experienced team that spans all facets of the business

Phil Marleau, CEO and Director over 20 years of experience in the securities industry (Merrill Lynch and Scotia Capital). Mayco Quiroz, CFO over 15 years of experience in accounting (Harris Corporation and L’Oreal). Paul Hamilton, CTO over 30 years of experience in technology (Maplesoft, McAfee, Disney Interactive, GuestDriven).

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Governed by an experienced Board of Directors

Evan Price, Chairman over 20 years of experience leading high-tech

companies, both private and public

.

David Cynn, Director over 20 years of experience in

investment banking and private equity focused on focused financial services (Morgan Stanley and Lightyear Capital).

Guy Charette, Director

over 25 years experience in securities law. Guy is currently a director of Carpathian Gold (TSX-V listed company).

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IOU-V Stock Price ($)

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IOU-V Stock Price ($)

Volume Price

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Summary

 IOU is revolutionizing lending through technology.

 IOU operates in a massively under-served market.

 IOU is positioned for extreme growth within this market.

Phil Marleau, CEO IOU Financial Inc. (514) 789-0694 ext. 225 [email protected]

Mayco Quiroz, CFO IOU Financial Inc. (514) 789-0694 ext. 298 [email protected] Contacts: