LOAN AVAILABILITY

Brooke Credit Corporation is a sister company of Brooke Franchise Corporation. Successful business owners often require access to credit and Brooke Credit provides acquisition loans to franchisees. The reliable and reasonable availability of capital is a primary reason for the success of franchisees. The availability of acquisition loans is of obvious importance to buyers, but it is also important to sellers because it expands the pool of qualified buyers.

Unique Insurance Lending Specialization
Because Brooke Credit specializes in insurance-related lending, franchisees have the benefit of a lender that knows its business. For qualified and experienced insurance professionals, this can make credit approval faster and easier with credit terms that are more attractive than those typically offered by other lenders.

Innovative Insurance Collateral Preservation
Brooke Franchise assists Brooke Credit in the preservation of collateral by closely monitoring borrower performance and acting quickly to help borrowers address performance problems. The consulting and loss mitigation activities provided by Brooke Franchise are a preventive and proactive approach to insurance lending that is unlike the reactive approach of most conventional lenders. These collateral preservation activities make loans more readily available to franchisees because they help reduce loan losses.

1st To Securitize Insurance Loans
During 2003, Standard and Poor's created a new securitization asset class of insurance agency loans based on Brooke Credit's credit and operational processes. Since then, Brooke Credit has securitized five pools of insurance agency loans, which represent the first and only insurance agency loan securitizations. These securitization activities make loans more readily available to franchisees because they expand the number and type of investors willing to purchase insurance agency loans.

100-Plus Bank Lender Network
A mainstay of Brooke Credit's funding programs is the sale of loan participation interests in specific insurance agency loans to Brooke Credit's lender network. Throughout a period of more than 10 years, Brooke Credit has built a network of nearly 150 banks and finance companies that purchase participation interests in insurance loans. This results in the availability of more loans for franchisees.

$80 Million Lines of Credit
Brooke Credit has an $80 million lending facility through DZ Bank AG Deutsche Zentral-Genossenschaftsbank, headquartered in Frankfurt, Germany. This lending facility is used to fund insurance agency loans originated by Brooke Credit until they are securitized or sold, which accelerates loan funding to franchisees.

$One-Third Billion Insurance Loans
Brooke Credit's portfolio of insurance agency loans is approaching $400 million. This demonstrates Brooke Credit's effectiveness in making insurance agency loans available to franchisees.