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Frequently Asked Questions

Questions:

  1. What is the first step in submitting a project?
  2. Who makes the decision to accept a project or not?
  3. What are your fees?
  4. Do I need to send in a full business plan?
  5. When does CMG submit the Package to Lenders?
  6. When does the Lender and Client communicate?
  7. What if no finance is organized?
  8. Can you provide initial consultation on financing our project?
  9. How do we decide what services we require from CMG and how do we finalize our order or agreement with CMG?
  10. What can we expect from CMG once the agreement is signed?11. How do we know how much progress is made in our CMG assignment?

Answers:

1. What is the first step in submitting a project?

Business Prospect should fill out the Printable Inquiry Form provided on home page www.cm-group.com and Executive Summary Form of the project provided on www.cm-group.com. On receipt of the information of your project, CMG will respond within 2/3 days with a CMG proposal for CMG Management & Financing Services. On acceptance of the CMG proposal, CMG and Client sign an agreement prepared based on the accepted proposal.

2. Who makes the decision to accept a project?

CMG screens all projects and sends proposals to those business prospects that CMG can contribute positively to organize finance for the project. Once we sign an agreement, a summary presentation package (Investment Grade Business Plan and Presentation Package) is prepared for each client/project. This summary package is presented to a list of screened investors/lenders and CMG will communicate the important and positive parameters of the project to each lender/investor. Also, CMG will facilitate Due Diligence of the client project to each Lender by conducting preliminary due diligence in advance.

3. What are your fees?

CMG offers Management & Financing services specializing in financing of start-up and expansion projects (Range $3 Million up to $250 Million). CMG earns all its fees through performance and deliverables. CMG charges professional fees to create

  1. Investment Grade Business Plan – deliverable 1
  2. Presentation Package(Ref. FAQ #9) - deliverable 2
  3. Letter of commitment from Lenders/Banks – deliverable 3
  4. Disbursement of loan – Deliverable 4

Each financing proposal is different as it involves evaluation of risk on the project and management skills of the principal(s). Hence, CMG compensation fees are quoted based on scope of the custom assignment. We submit proposal for CMG Management & Financing services within 2/3 days.

4. Do I need to send in a full business plan?

Yes! If available, this will help CMG in determining scope of the assignment. If you do not have a Business Plan, CMG can create one for your business/project as per the agreement to be signed.


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.


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.

8. Can you provide initial consultation on financing our project?

Yes! Initial consultation is free! Best thing to do is-complete Printable Inquiry Form (located on home page www.cm-group.com) and submit Executive Summary Form 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 24/48 hours.
 

9. How do we decide what services we require from CMG and how do we finalize our order or agreement with CMG?


Please refer FAQ #1.

A. Business Plan Fees: When you are working on financing your business, there are four primary activities/deliverables involved: Preparation of investment grade business plan and sending information to investors/lenders or processing of your project information (Ref. FAQ #5). 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.

Regular Business Plan $10-15,000  For $3 Mn. To $5 Mn Loan
Advance Business Plan $15 - 25,000 For $5.1 Mn. To $10 Mn Loan
More Advanced Business Plan for medium size projects $25,000 or more For $10.1 Mn. To $25 Mn Loan or more

B. Presentation Package Fees: Every client of CMG is required to pay a fee for preparing a Presentation Package for the project to submit to Lenders. These fees include preparation of Presentation Package (includes advance preliminary Due Diligence by CMG) facilitate due diligence and professional & administrative efforts during the approval process with each lender. The fees are dependent on the scope of the assignments required as written on the order placement form on this website:

Presentation Package Fees |  For Loan Amount Required

$5,000 For $3 Mn. To $5 Mn Loan
$7,500 For $5.1 Mn. To $10 Mn Loan
$10,000 - $15,000 For $10.1 Mn. To $25 Mn Loan
Custom Quote depending on the scope of the assignment For $25 mn. And above

All terms and conditions are specified in CMG proposal to client/prospects.

10. What can we expect from CMG once Agreement is signed?

When you sign up with CMG as a business client, CMG will do the following:

Take a Lead role in creating a professionally prepared package that is bankable/investable and is presented to no. of lenders/investors:

  1. Assist you to define your start-up/expansion project.
  2. Prepare Investment Grade Business Plan.
  3. Do advance preliminary due diligence for your project, and prepare Presentation Package. This process will eliminate/minimize the errors in presenting the package to lenders/investors and will please the lenders/investors as advance work is done for them. First impression is very important in investment decisions.
  4. The above steps will create an investment grade package that is likely to be accepted for evaluation by   lenders/investors.
  5. Screen 5-10 lenders/investors who are likely to be investing in the client’s industry and location.
  6. Contact each lender/investor and establish their initial positive response, and present the package.
  7. Make professional efforts to get a letter of interest from lenders/investors.
  8. On receipt of letter of interest (or equivalent), complete/facilitate due diligence, and finalize letter of commitment with lenders.
  9. Facilitate disbursement.