5. When does CMG submit the Project Package to Lenders?
Your project will be submitted to the lenders or investors in our database, who are likely to be interested in your type of project when CMG completes the Business Plan and Presentation Package. Capital Management Group will keep submitting your project to (5 to 10 parties) screened lenders/investors or until the project is funded. CMG learns important lessons from each response of lender/investor. CMG's goal will be to organize financing ASAP.
6. When does the Lender and Client communicate?
When the lender or investor receives a full and complete package and wish to make a commitment, it is at this point that CMG will facilitate communication. CMG will assist/coordinate with the client and the investor/lender so that there can be an agreement. Final decision to move forward with the loan/investment is made by lender/investor and the borrower.
7. What if no finance is organized?
CMG will not be happy if that happens! We work for success. CMG spends several months of high level professional efforts to organize funds for each client.
1. In business, one has to take small calculated risks on a day to day basis. One has to evaluate whether this is a necessary investment. Business Financing is very time consuming, and involves high level of professional efforts for a few months. To borrow millions of dollars, one has to go through a step by step approach professionally. CMG (take a lead role) and client have to work together to convince lenders that loan will be repaid back with interest as accepted loan terms by the borrower. If loan is not organized with one lender, one has to go in to details why it did not get approval. Often it is a matter of negotiation. Then take corrective action and go to the next lender better prepared. This way one must move forward step by step. Billions of dollars of loans are disbursed each month. It would not be wise to take decisions based on very pessimistic view of the outcome. If you are near to the solution, you can always make small adjustments and make your package little more attractive.
2. Hundreds of hours of professional hours are expended before even the first lender is approached. We have to create a good impression of the project and management to, and also screen lenders after we determine risk profile of the project. Majority of the projects fail to get the funding because they do not present the project professionally or there are fundamental flaws in structuring the project. These common mistakes are addressed well by CMG before even a first lender is approached. First good impression is critical in the approval process.