Frequently Asked Questions

Questions:

Answers:

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

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? i.                     In business one has to take small calculated risks on a day to day basis. One has to evaluate whether this is a       necessary expense or an investment. Business Financing is very time consuming, and involves high level of professional       efforts. To borrow millions of dollars, one has to go through a step by step approach professionally and these steps carry     certain risks. 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 given 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 attractive.           ii.         CMG accepts the project after preliminary 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. Please note that CMG is taking great risk when CMG accepts the project as no remuneration is paid each week except professional fees normally to prepare investment grade business plan and custom presentation package.                           Loans are approved primarily on the strength of the project, management & security offered to lenders for the repayment of                    the loan. There is no reason any reputable financial services company would prepare business plan and presentation package                    for free or accept fees at later date when the work is to be performed is right in the beginning i.e. right after signing of                    agreement with CMG.         iii.                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 improve chances of funding the project, 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 fully before even a first lender is approached. First impression is critical in the approval process.

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?