The content of that link from CEO commentary_on_funding_loans
Question: I got another email asking “…how does CFGX fund loans …there doesn’t appear to be enough money on the balance sheet?”
Answer: The money we fund with doesn’t come from our balance sheet. We fund deal using our lines of credit from our investment banking partners (like BofA Merrill Lynch), hedge funds, or other institutional investors. This type of funding capacity doesn’t appear on our balance sheet.
We cannot be compared to a bank that funds loans using customer deposits (balance sheet) or a hedge fund that funds deals out of their AUM (balance sheet). We don’t have AUM (assets under management) and we can’t take customer deposits.
Our business model requires us to tap into lines of credit, issue stock, or participate with other investors. None of these items appear on the “asset” side of our balance sheet as funding capacity, they only appear on our balance sheet after funding. Therefore, looking at our balance sheet isn’t a good indication of our ability to transact loan business.
I hope that helps.
Sincerely,
Paul Edward Norat, CEO Capital Financial Global, Inc.
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