Nelson Financial Opportunity - www.pin.ca/ontario/04-0320

email David Taylor: davidl2@bellnet.ca email Paul Torres: ptorres@bellnet.ca

Background:

Nelson Financial Group Ltd., incorporated in 1990, is a privately owned financial services company servicing the sub prime automobile leasing marketplace.

The principals, Marc Boutet and Dave Baker, offer 50+ years combined experience in the investment banking\finance and auto lease finance industries with the growth and ongoing success of Nelson Financial a testament to their prudent and proven management expertise.

the Concept:

There is a growing segment of the automobile buyer's marketplace that cannot access traditional credit lending sources for a variety of reasons including spotty credit history, individuals who have yet to establish credit, immigrants and former bankrupts. Nelson Financial Group Ltd. has recognized this marketplace opportunity and extends automobile lease credit to these higher credit risk individuals under specific terms and conditions.

We lease only late model vehicles sourced through our accredited branded dealership network. Individual clients must apply for the credit through the dealership given dealer participation in our credit granting program.

Our management model recognizes the nature of the credit risk and mitigates the risk via pro-active measures and prudent management practices.

Interest Rates and Returns:

We extend credit at an all in rate of 24.9% to every leasing client. The investor is offered a 12% rate of return per annum with the remaining 12.9% utilized by Nelson Financial for portfolio management, administration and profit.

The term offered to the investor is matched to the length of the leases, typically 5 years.

Investment Opportunity:

A 5 year fixed term investment yielding 12% per annum. Monthly payments can be fully amortized over the term (blended P&I), interest only or interest can be compounded through to maturity. The investment is secured by an assignment of lease contracts via a chattel mortgage with the investor enjoying 1st priority position on both the hard vehicle assets and the lease contract cash flows.
Minimum $25,000.

Example: Repayment options for $100,000 @ 12% over 5 years.

a) Fully amortized blended principal and interest payment of
$2,224/month for 60 months. Total repayment to investor
$133,440.

b) Interest only payments monthly of $1000/month for 60 months. Total repayment to investor of $ 160,000.

c) Compounded through to maturity - No monthly payments with total repayment to Investor at maturity $ 183,486.

Investment Documentation:

Executed Assignment Agreement: Identifies the investment amount, the payment option selected, the division of lease contract cash flows and the portfolio management duties assigned to Nelson.

Front page copies of the leases assigned to the investor. Full details of vehicle costs, payment amounts, interest rate, due dates etc.

Amortization Schedule: details the payment amounts for the term.

Executed Mortgage Broker Disclosure Statement: details terms and conditions of chattel mortgage security.

Taxation Reporting Requirements:

Nelson Financial Group Ltd issues to each investor annually T5 slips outlining interest income earned on their investment. Investors can be individuals or companies. A valid social insurance number (or business number) and mailing address are required for interest income reporting. Monthly payments are paid according to investor instructions at their discretion.

Risk/Asset Management Model:

Nelson Financial Group Ltd. clearly recognizes the nature of the sub prime leasing clientele and the associated portfolio management challenges. Given the higher perceived risk and generally prudent portfolio management practices, Nelson Financial has implemented a pro-active, no nonsense risk reducing strategy which has proven to be both efficient and highly effective. It is outlined as follows:

A GPS locator module is installed in every vehicle. Via the internet and satellite technology, we are able to track and locate our cars anywhere in North America. We know where all of our security is at all times (and usually our clients as well).

A starter interrupter switch is also installed in every vehicle we own. We are able to turn the car on/off so as to prevent use if payments are not made or repossession is required. This is an extremely effective tool to preserve values and encourage timely debt service payments.

We accept payments via Western Union. Clients can forward payments to us from anywhere in North America.

Every Nelson vehicle is covered under our CAA membership, offering emergency roadside assistance to all of our lease clients. In addition, all lease clients are entitled to free regularly scheduled oil changes from the selling dealership.

Our dealerships participate with Nelson Financial and adhere to a "20% holdback" rule. Nelson advances 80% of the purchase price at sale closing and holds the additional 20% in reserve. This reserve pool of funds is utilized to offset lease default and only paid to the dealer upon specific performance of the lease contracts.

Our dealers enter into specific repurchase agreements for vehicles they sell. If lease default occurs, the dealer, at Nelson's discretion, is required to repurchase the vehicle for the outstanding principal balance remaining. This further insulates Nelson from loss under default conditions.

The lease contracts are structured as "rent-to-own" with a back end payment or residual of $1.00 assuming all payment obligations are met. This encourages clients to take pride of ownership, service their debt in a timely fashion and properly maintain the vehicles.

Our customer service specialists are experienced, sophisticated and well trained. Utilizing the latest technologies they effectively manage the individual lease portfolio treating every client with professionalism, courtesy and respect.

Our asset management model is a practical, sensible and workable approach to protecting our security interests, maintains and enhances the quality of cash flow payment streams, encourages our clients to act reasonably and responsibly and improves the quality of the aggregate lease portfolio. It continues to be a winning strategy and time tested proven asset management formula for ongoing success.

Summary:

For the investor, our management practices, procedures and techniques offer a measurable reduction in overall portfolio risk (mitigating risk), a clear demonstration of our professional capabilities, confirmation of our commitment to ongoing success and an attractive safe high yield income generating investment.

References:

Bank:

TD Canada Trust, 2 King Street East, Oshawa, Ontario
Acct# 3184-52049848-01,
Contact: Cyril Turgeon (905) 576-6203
E-mail: Cyril.turgeon@td.com

Dealers:

Niagara Auto Center, Niagara on the Lake, Ontario
Contact: Ron Bradley (905) 468-0772

Ontario Chrysler, Mississauga, Ontario
Team Chrysler, Mississauga, Ontario
Columbo Chrysler, Woodbridge, Ontario
Contact: Bourke Boyd (905) 625-8801

Automotion:

Hamilton, Ontario
Contact: Nahum Kaplan (416) 468-0772

Approved Auto:

North Bay, Ontario
Contact: Brian Tutton (705) 499-0031

Memberships/Associations:

Canadian Institute of Mortgage Brokers & Lenders: (CIMBL) www.cimbl.ca
Canadian Finance & Leasing Association: (CFLA) www.canadianleasing.ca
Independent Mortgage Brokers Association: (IMBA) www.imba.ca
Ontario Motor Vehicle Industry Association: (OMVIC) www.omvic.on.ca
Used Car Dealer Association: (UCDA) www.ucda.org

Investor References:

Mr. Bill Moore: (retired Revenue Canada Auditor)
email: fernmor@sympatico.ca

Mr. Chris Hull: (Ontario Government Procurer)
phone: (416) 338-2120

For Further Information Please Call:
David Taylor (ext239) or Paul Torres (ext228)
at (905) 839-1761 or
toll free 1-866-340-5559

Additional Information Can Be Found At
www.nelsonfinance.ca

TESTIMONIALS:

“I consider my investment with Nelson Financial solid, safe and well managed. My capital is intact and I have been living off the monthly interest for 3 ½ years”

“Nelson has delivered on all counts. The fixed 12% yield is by far the best investment decision I have made. It is significantly outperforming my other investments……..”

“I have received 77 monthly interest payments from Nelson. They have consistently delivered on all fronts…….”

“I’m impressed with the portfolio management structure and am fully confident in their ability to deliver…….”

“My retired mother invested significant capital with Nelson and is quite satisfied with the monthly income stream. It allows her to maintain her current independent lifestyle…..”

“It is refreshing to deal with a company that does exactly what it says it will do….”

“Since I was not available to go to their offices, a Nelson representative came right to my home and in 5 minutes, the paperwork was completed. That’s what I call service”…….

“My father introduced me to the investment opportunity at Nelson. When I attended their offices on a Friday afternoon, all my questions were answered and my investment documentation was completed in an hour. I am truly impressed …”

“Nelson encouraged extensive due diligence, were frank and direct and explained the mechanics of the investment to my complete satisfaction…….”

“After becoming a investor myself, I received a commission cheque in the mail from Nelson for referring my brother-in-law. What an unexpected bonus……my family and I enjoyed a fine dinner on Nelson’s Tab….”