Securing the funding necessary to get a large-scale project off the ground and running is never easy, usually requiring multiple contracts with multiple funders across every aspect of the project, each with their own unique approval processes and conditions. With this in mind, it’s clear to see the process of building a capital stack is messy, demanding a significant amount of dedication and work to establish and maintain, often becoming the reason why so many projects fail to secure funding; But what’s the alternative?
“100% funding,” says Charles D. Carey, Managing Partner at CIG Capital, “It’s a simple, but effective solution that enables borrowers to secure an entire capital stack in one place, including short term, long term, venture debt capital, expansion capital and more, all under one contract and from a single lender. It simplifies the process from start to finish, enabling the Project Owner to focus on what’s important: the project itself.”
With many Project Owners spending less time on the project at hand and more time managing finances and stakeholder-associated relationships, firms like CIG Capital and their 100% funding offering help to streamline the funding process, which is something Charles D. Carey believes enables more projects to secure necessary funding than through traditional models.
“We’ve seen many projects fail to secure funding, and this is because most traditional funding models rely on multiple sources, which requires not only multiple contracts, but the maintenance of many relationships. Sometimes it can even lead to a ‘too many cooks in the kitchen’ scenario,” says Charles Carey, “This is where conditions overlap and Project Owners end up acting more like stakeholder mediators or money managers. Essentially, their return on time becomes much more limited, or the managers simply run out of steam or miss funding deadlines, which ultimately leads to project failure. 100% funding enables more projects to be funded because the rigmarole, tasks and maintenance associated with building a capital stack are negated entirely for the Project Owner. Instead, they’re working with one lender who, through a diversified portfolio is able to build and maintain the capital stack on their behalf.”
“This means they can focus on the business and project itself, and work on putting together a business model, building a team, developing a product, and ultimately getting their project finalized or their product to market.” adds Charles D. Carey.
While the 100% funding model appears to be ripe with benefits, the main drawcard – comprehensive funding from one lender – also shows potential for one major risk, which begs the question: if all of the money comes from a single lender, isn’t the risk of losing that funding in the event of a major economic downturn higher? Charles D. Carey believes this isn’t necessarily the case, because smart firms, like CIG Capital, keep a diversified portfolio across many different industries that ensures stability and mitigates risk.
In fact, this is a point of pride for CIG Capital, whose portfolio consists of alternative lending, project finance, infrastructure, real estate, FinTech, oil and gas, bio-medical, software and more, which grants them stability in times of economic turmoil and in turn, enables them to offer more secure funding opportunities. Furthermore, the fact that CIG Capital are managing the capital stack means they’re wholly dedicated to the success of the projects that they service, because the success of the project at hand ultimately dictates their long-term success.
100% funding isn’t CIG Capital’s sole offering either, with the firm drawing upon their 80 plus years of combined professional experience to offer project management, risk management, economic growth management, and financial consulting services. This comprehensive offering means that the projects they service aren’t just securing funding, but a wealth of expertise to ensure all possible aspects of a project are covered.
“We want our clients to be successful, and 100% funding is just one aspect of ensuring that. We plan to continue to build upon our current services, innovate the ways we provide support, and leverage our expertise, knowledge, and diverse portfolio to ensure our clients and their projects achieve the best outcomes possible.” says Charles D. Carey.