Capital Management Group: Business Loans, Working Capital, Business Plan: Press Release 2004

Capital Management Group Describes 5 Biggest Problems Businesses Face When Trying to Get Business Loans or Equities from $100,000 to $25,000,000
Wednesday March 31, 2:27 pm ET

ANAHEIM HILLS, Calif.--(BUSINESS WIRE)--March 31, 2004--Finding the capital needed to finance a business can be a confusing and complicated process. Many great ideas stumble at this stage of business building. Yet moving through this stage is critical for the success of a business/project. Finding money is just a matter of being informed and choosing the right path for business capital to start, expand or even exit the business. There are several options available when searching for financing. Some methods of raising funds are less difficult than others, but almost all require some planning, professional expertise or relevant experience.

1. Lack of Planning: Sixty to 80 percent of all new businesses fail
 during their first five years. A key reason for this failure is due
 to lack of good planning. Only 10% of all business equity or loan
 proposals are accepted and funded. A good investment-grade business
 plan has proven to be critical to the success of a new or existing
 business. The better the plan, the better the chances of
 communicating to stakeholders and succeeding in getting the
 required funds and performance in time. Businesses need the right
 model.

2. Too Many Hassles and Turn Around Time Too Long: Usually a business
 spends countless hours running around trying to obtain financing
 for projects and worrying about time-consuming packaging
 requirements and dealing with inexperienced or new lenders,
 investors and investor meetings. Often a business will discover the
 banks or investors have different or unreasonable requirements from
 its point of view. Businesses need to do it right the first time.

3. Lack of Administrative Assistance: Many small companies lack the
 administrative infrastructure that can impact regular efforts with
 the necessary expertise, and organize finance in time for setting
 up the project and working capital. In most cases, a company is
 stuck trying to gather information through its own efforts, as well
 as trying to run the business or current activities and maintain an
 excellent reputation. A business may need to outsource and must
 determine who can best finance a project.

4. Hidden Costs: In a typical loan situation, there are always
 hidden costs involved. And most businesses are just not aware of
 certain upfront costs; it's even harder to swallow than actually
 paying the amount. These fees, along with basic administrative
 expenses, are necessary as the financing process often takes 8 to
 16 weeks and involves collecting and presenting the relevant
 information by a team of professionals. Businesses need to present
 the right information the first time.

5. Confusing Options: The traditional lending process with most
 business banks and lenders focuses on one thing -- get the
 application, send it to a committee for approval and give the
 answer: yes or no. It's a numbers game. The more applications they
 submit, the more loans they may approve. There is no one there who
 will look at other options available and assist a business in the
 process. There are a lot of confusing options in an environment of
 information overload. Businesses need to determine which option is
 right for them.

Contact:

 Capital Management Group
 Ray Shah, 714-439-9600
 cm-group@sbcglobal.net www.cm-group.com