1. What is the first step in submitting a project? Fill out the Online or Initial Inquiry Form provided on this site and e-mail Executive Summary of the project (executive summary form available in CMG financing section on www.cm-group.com). On receipt of the necessary information of your project, CMG will respond within 2 days with a proposal. In due course, say within 7/10 days we will send you a Non-Circumvention/Non-Disclosure and a Working Agreement. These are to be approved and accepted then faxed to our office (fax: 1/714-459-7133).
2. Who makes the decision to accept a project? We at Capital Management Group screen all projects and send proposals to those clients that CMG can contribute positively to finance the project. This normally involves Needs Analysis (or a pre qualification process). Once we sign an agreement, a summary presentation package is prepared for each project. This summary package is sent to a list of screened investors/lenders and we individually communicate the important and positive parameters of the project to each lender/investor. However, the lender or investor will make the ultimate decision as to which projects they want to work with.
3. What is Needs Analysis? Needs Analysis for the project generally includes – o Evaluate Business Plan. Whether the business plan you have on hand is adequate for financing.
o Financial Structure of the project would be determined/suggested in consultation with the principal of the project.
o Risk evaluation--–chances of financing your project and how to significantly improve odds of Financing your project in time
o Necessary Credit report.
o The optimum approach to look for financing will be finalized in consultation with you by CMG consultant.
o Financing project schedule …-- steps and time frame to be followed for organizing finance for your project
o Comprehensive Proposal – How CMG will assist you in Financing your project.
o Fees– the fees (generally up to $1000) will be fully credited back to you when you sign up with CMG for financing service
.
4. What are your fees? CMG is business financial advisor specializing in financing of start-up and expansion projects (Range $500,000 to $25 million). CMG earns almost all its fees through performance and success. However, CMG charges small fees to process financing applications. We work with the clients under signed agreements only. Each financing proposal is different as it involves evaluation of risk on the project and management skills of the principal(s). Hence, fees are quoted based on amount of loan/equity, guarantee and efforts involved in the project. However, CMG generally follows the fee schedule:
Business Plan Fees (As per written CMG Proposal)
General Guidelines:
Item # and Name
Description
Fees or Compensation
Deliverable
Time Frame
BP5M
Comprehensive Business Plan includes strategy and implementation summary with tables and charts.
Complies with Banks/SBA requirements
$10,000
As per Customized CMG proposal accepted by the client
As per CMG proposal
BP10M
Business Plan for larger Projects ($5.1mn to $10mn)
Comprehensive Business Plan includes strategy and implementation summary with tables and charts.
Complies with Banks/SBA requirements
$15,000
As per Customized CMG proposal accepted by the client
As per CMG proposal
BP25M
Business Plan for larger Projects ($10.1mn to $25mn)
Comprehensive Business Plan includes strategy and implementation summary with tables and charts.
Complies with Banks/SBA requirements
$20,000
As per Customized CMG proposal accepted by the client
As per CMG proposal
Schedule of compensation for organizing finance (General Guidelines)
Item # and Amount
SLAB RATES OF COMPENSATION FOR LOAN/LINE OF CREDIT
SR5M-$2Mn.-5Mn.
4%
SR10M-$5.1Mn.-$10Mn.
3%
SR25M-$10.1Mn.-25Mn.
2.5%
Schedule of compensation for organizing finance For Real Estate based Projects (General Guidelines)
Item # and Amount
SLAB RATES OF COMPENSATION FOR REAL ESTATE LOAN
RESR5M-$2Mn.-5Mn.
2.0%
RESR10M-$5.1Mn.-$10Mn.
1.5%
RESR25M-$10.1Mn.-25Mn.
1.0%
Schedule of compensation for organizing finance For Equity (General Guidelines)
Item # and Amount
SLAB RATES OF COMPENSATION FOR EQUITY/ LC
SREQ001 (On the amount of Equity/LC)
5%
For International Loans, compensation may be higher than stated above
5. Do I need to send in a full business plan? Yes! It's a good idea to have one on hand and ready to go when you submit your executive summary to Capital Management Group. A well-written business plan is singularly one of the most important tools you will ever create for the success of your business. If you do not have a Business Plan, we can help you create one
6. What is the next step? Your project will be submitted to the lenders or investors in our database who are likely to be interested in your type of project. Capital Management Group will keep submitting your project to (up to 10 parties) screened lenders/investors or until the project is funded
7. Okay, now what? When the lender or investor receives a full and complete package and wish to make a commitment, it is at this point that the client and the lender begin direct communication with each other. Negotiations and discussions between the lender and the client are open at this time. In case required, we will assist/coordinate with the client and the investor/lender so that there may be an agreement
8. What if no finance is organized? CMG accepts the project after Due Diligence or preliminary scrutiny of the proposal and after analyzing project information or after completing the Needs Analysis. The agreement to organize finance is arrived only when CMG is hopeful of positive results. However, at times finance is not organized due to number of different factors including lack of accurate and timely information or lender/investor terms are not possible to be fulfilled by the principal/entrepreneur. If it were found that all the information given to CMG is timely and accurate and simply not a single investor/lender has come forward with any interest till completion of the term of the agreement then CMG would refund 100% of processing fees paid by the client. Please note that CMG is taking great risk when CMG accepts the project as no remuneration is paid each week except a small amount of administrative fee which primarily takes care of basic expenses in searching for the right source of finance for the specific client’s project
9. Can you provide initial consultation on financing our project? And what will be the cost or obligation? Yes! Initial consultation is free! Best thing to do is—complete online or initial inquiry form (located in ‘how to finance’ section) and submit Executive Summary or a one or two-page write up by email on what exactly you are trying to do or achieve. On receipt of the information we will be in touch with you normally within 24 hours. There is no cost or obligation to do this. In case, it is mutually decided to carry out a comprehensive “Needs Analysis” there will be certain fees that will vary on a project-to-project basis. Please refer FAQ #3 for the same
10. How do we decide what services we require from CMG and how do we finalize our order or agreement with CMG? When you are working on financing your business, there are three or four primary activities involved: Preparation of investment grade business plan, Needs Analysis (Ref FAQ #3) and sending information to screened investors/lenders or processing of your project information (Ref. FAQ #2). For some projects, CMG needs to charge Consulting Fees as time/expense involved in collecting information, and when efforts to locate suitable lender/investor is far greater than normally required. CMG normally credits back the Processing Fees at closing against the final fees payable to CMG for organizing Equity or Loans
You can decide on the following CMG services and place your order online:
1. Business Plan: First of all you will require a professionally prepared (Investment Grade) Business Plan. If you have one on hand, you may not need to place order for a Business Plan with CMG. If you need one then select the one required on the order placement form as per the amount of funds you require. There are several options here depending on finance required :
Item # -Business Plan Type
Price
For Amount Required
BP5M- Regular Business Plan
$10,000
For $2mn to $5mn.
BP10M- Advance Business Plan
$15,000
For $5.1mn. to $10mn.
BP25M- More Advanced Business Plan
$20,000
For $10.1mn. to $25mn
2. Needs Analysis:
Item # and Needs Analysis Fees
For Amount Required
NA5M - $.2,500
For $2mn to 5mn.
NA10M - $3,000
For $5.1mn to $10mn.
NA25M - $4,000
For $10.1mn to $25mn.
If you are clear about all aspects of your project including how you will finance your project, you may not require needs analysis.
3. Processing Fees: Every client of CMG is required to pay processing fee. This fee covers basic administrative costs in dealing with your file and communicating your proposal to the screened investors/lenders.The fees are dependent on the amount of finance required as written on the order placement form on this website:
Item # and Processing Fees
For Amount Required
PF5M - $7,500
For $2mn. to $5mn.
PF10M - $10,000
For $5.1mn. to $10mn.
PF25M - $15,000
For $10.1mn. to $25mn.
Alternatively, you can provide information on your project to CMG Consultant and request a written proposal
11.How do we know how much progress is done in our Financing assignment?
Main Office : 934 S. Flintridge Way, Anaheim, California 92808, USA Tel:1(714) 439-9600, Fax:1(714) 459-7133 Branch Office: 468 North Camden Drive Suite #200, Beverly Hills, California 90210
