Business-As-Usual Despite an Uncertain Economy: Here’s How CIG Capital Is Doing It
With close to 2 million confirmed cases and over 125,000 deaths worldwide, the news around COVID-19 is virtually inescapable, and it makes sense. Considering the impacts the pandemic is wreaking upon daily life, global healthcare systems, and the economy, the general public has been ordered to stay home and observe social distancing. Healthcare systems around the world are straining with the increased burdens, businesses are closed down and boarded up, and a global recession has already begun.
While there are currently no answers on the length, severity, or depth of this economic disruption, the sudden recession is likely to increase the barriers for those trying to secure funding for projects, with many investment firms freezing operations until the future is less uncertain. That is, aside from CIG Capital, an alternative investment firm who is proactively pushing ahead, actively seeking out and creating liquidity for projects.
“Other lenders are freezing capital in what is commonly thought of as ‘smart’ preparation for an upcoming recession,” says Charles D. Carey, Managing Partner at CIG Capital, “CIG Capital, on the other hand, is actively creating liquidity for projects, while also utilizing our fintech resources for intelligent risk assessment in an effort to continue driving the economy forward. In fact, we have written $2.7 billion in term sheets.”
So how exactly is CIG Capital creating this liquidity? Carey states it’s through a proprietary process of utilizing both credit like Moody’s, S&P, or Fitch, and assets like real estate, bank instruments, collectables, and even in-ground assets like gold and oil. Unlike the typical use of debt metrics and capital ratios that can easily get out of hand, this proprietary process enables CIG Capital to create liquidity and take on projects that innovate industry, expand current markets and build the economy, in turn creating new jobs which are sorely needed as a result of the COVID-19 crisis.
Another aspect of CIG Capital’s business structure that has enabled them to continue operating at a business-as-usual level is their utilization of innovative and intelligent fintech, like their Live Fintech Predictive Risk Modeling Underwriting software, also known as PRMUS, which enables them to predict a project’s long-term risk against today’s short-term circumstances. This means CIG Capital is able to easily and accurately assess a project’s risk and ultimately it’s viability in both the current and post-corona world. Unlike other lenders who take weeks, or even months to approve project funding, CIG Capital’s use of PRMUS allows them to assess and approve funding opportunities within hours.
In addition to their effective risk modelling capabilities, CIG Capital is able to continue lending despite an uncertain economy due to their various financial resources which enable them to control the capital stack. This means that, unlike other lenders who rely on additional help for their take out loan, are able to provide 100% funding to clients from a single source.
“We’ve seen many projects fail to secure funding, and undoubtedly – thanks to COVID-19 – this will become a much more cogent challenge as most traditional funding models rely on multiple sources,” says Carey. “These sources will be much harder to find as many freeze capital in response to economic uncertainties. That’s why CIG Capital’s ability to offer 100% funding in times like this is especially valuable, and that’s without taking the additional benefits of a 100% funding model, like a greater return on time and reduced workload, into account.”
100% funding and effective risk assessment are among the many services CIG Capital provides, 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 help projects sail through these economically uncertain times and ensure all project aspects are covered.
“We want to reassure our current and future potential clients that through the mechanisms we’ve put in place – 100% funding, risk assessment and through the creation of liquidity – we’re still operating ‘business as usual’, and are welcoming new, viable, and innovative projects at this time. We also plan to continue to build on CIG Capital’s offering, innovate the ways we provide support, and of course, continue supporting and driving the economy through this uncertain time.” says Carey.
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