CIG Capital

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This Firm's Innovative Take on Lending Gives Businesses Access to Funding for Large Projects Thanks to a powerful algorithm, CIG Capital streamlines a traditionally slow, arduous funding process.


In 2014, serial entrepreneur Charles D. Carey recognized an opportunity; he knew the traditionally slow process from getting a loan approved to actually receiving the money was in dire need of improving, so he set out to make it a reality.

At that point, Carey was founder of Carey Investment Group (CIG), a consulting service helping businesses acquire bank loans. But after years of seeing just how difficult it was for businesses to receive funding when they actually needed it, Carey—along with a group of other professional loan consultants—created a division within CIG called Business Union Financial (BUF), which served as a lending originator and processor.

The secret to BUF was something Carey called Live FinTech™, an underwriting predictive risk modeling algorithm, that streamlined business loan applications process. Carey compares the process of getting a loan via Live FinTech™ to the speed and simplicity of applying for a credit card.

"By uploading your balance sheet, bank information, and other proprietary information, the algorithm will provide an instant cash flow analysis to determine how well the business is managed," Carey explains. "Our underwriting team is then able to determine terms, rates, and the amount that we are able to lend." Of course, CIG is mindful of fraudulent applicants, so employees verify the information and check the legitimacy of the company, identity, business information, and perform a manual risk assessment.

While CIG initially used Live FinTech™ for small-business lending, the team adjusted the algorithm to accommodate an area where demand is high: Large project funding. Today, CIG Capital helps fund large projects between $20 million to $5 billion or more, putting them in the same arena as larger lending institutions.

"Our model is similar to structured finance, but we can leverage where others cannot because we use our own funds," Carey says. "As a result, we can provide 100 percent funding for projects. We use credit enhancements at the beginning of the project to create value and close the gap between the ability to fund the construction and start-up costs of a project. Where most capital stacks are divided amongst multiple lenders, we can do it under one "roof' as a one-stop-shop model."

With varied experience and perspective dealing with small businesses as well as larger corporations, here are Carey's best tips for business owners who are seeking funding.

Have all your needed documentation in order.

In other words, be prepared. The documents you'll need to secure funding can include your business plan, profit and loss reports, projections, competitive advantage, and marketing plan, to name a few.

"The lender will respect you and your project more if these items are prepared," Carey says. "If you are not prepared, it could cast doubt upon the credibility of the loan applicant and impair any sort of trust or confidence between the lender and the applicant."

Respect the money. Build trust.

From there, clearly explain to the lender what the money is intended for. How will you spend it? Why?

"By showing where every penny is going, you confirm that you respect the money you are receiving," Carey says. "Doing so will build trust with the lender, and they will feel confident in your ability to pay back the loan. If you can't clearly show in detail how the money will be used or how you are going to pay back the loan, the lender will see it as a lack of confidence and dedication to the business."

In general, don't be too "market strange.'

As a business owner, you of course want to have a competitive advantage. However, Carey warns of being too different, or "market strange," as he calls it.

While people think that businesses on the cutting edge of innovation have the biggest potential financially, lenders in those early days could be wary. "If the lender doesn't understand the product and it doesn't make sense, then lenders will not want to take that risk," Carey says. "Be sure the product is strong enough and has previously proven there is a need."

One exception to that rule is CIG Capital. With CIG Capital as your lending partner, they are often more willing to work together with businesses—even those with big, innovative ideas.

Click here to learn more about how CIG Capital can help your business reach the next level.