Getting Started

Getting Started with CAP Project Funding

We provide advantageous capital for mid-market projects (new construction or retrofits, refurbishments or renovations) that fit our sweet spot. We strive to keep an open mind when strong projects and experienced developers are well prepared to secure funding, so long as the project would cause (or perpetuate) no social or environmental harm.

Although we can accept other risks that traditional financiers won’t touch, projects must have reasonably low commercial risk — that is, there has to be a verifiable plan for meeting your financial projections to demonstrate that the project is financially feasible.  See topics 1 & 2, below to know more.

For a synopsis of our flagship Completion Assurance Program™ (CAP) funding, what it is, and how it works, please read this introductory letter or CAP funding tear sheet.

To get started we use a simple, multiple-choice assessment called Readiness and Investment Navigator (RAIN). Before contacting us, please complete this fast/easy pre-application … probably less than 10-15 minutes, and you will receive an overall score which we will want to review with you.

So that you know what we look for, there are 4 CAP cornerstones — size, space (or sector), stage of readiness, and Security.  But note that we do not require traditional “shovel readiness”.

You may want to begin with RAIN then immediately jump to these Simple Steps.

For the “Security” cornerstone, this is usually where the most attention is needed, as CAP’s innovative structure helps developers secure advantageous terms without up-front costs or cash payments as capital “skin in the game” contributions to their own project (for full leverage, 100% funding), which relies on the developer’s ability to facilitate some type of Security Deposit as a “Completion Assurance” Guarantee (CAG).

The type of Security that’s best for your situation depends on whether your own bank will cooperate with you to increase your asset depth (operating projects are worth far more than the capital used to finance it) or if you will need to involve a sponsor.  Sponsors can range from a well-established vendor, or customer, to a sovereign government or other party that would benefit from your delivery of the project.

The most-often used security is a financial instrument called a Standby Letter of Credit, ideally for ~60-75% of the required funding, which can be backed by assets (not cash), depending on the type of assets and the bank used. It remains operative (in place) only until the project has been commissioned to begin commercial operation (at which time it is allowed to expire).  Other types of guarantees besides the SbLC involve shorter (cash surety deposits, for example) or longer timeframes (Sovereign Guarantees).  Compare all

Not sure where to start?  If cash is available, that’s usually the easiest, or non-cash assets, most popular is the Standby LC (SbLC).  To be clear, an SbLC is not insurance or bonding, as is often supplied by a sponsoring EPC firm, General Contractor, or other major vendor, nor is it a loan guarantee, as there is no traditional loan (senior debt) involved.

Some of our repeat clients have sufficient financial depth on their own to provide Security (such as one or more previously built and at least partially owned projects), while others can offer an incentive to involve a “sponsor” to unlock CAP’s benefits and advantages. Landing page for sponsors of security (if you wish to share this info with them).

Developers can either facilitate their own guarantee or, with a high enough RAIN score, can apply to involve In3 on a split fee basis to arrange a Done-For-You guarantee on your behalf.  Know more (Security Solutions Center)

To get started with In3 Capital Partners LLC’s Completion Assurance Program (CAP) funding, developers should follow these steps:

1. Assess Project Fit: Ensure the project aligns with In3’s “sweet spot” criteria, which includes a minimum funding amount of $25 million and a focus on mid-market “impact” projects. Our RAIN assessment fast-tracks this step.
2. Pre-Qualification: Developers that fit In3’s basic criteria can lead their team to pre-qualify for funding, greatly increasing the certainty and decreasing risk and time horizons.  This makes many unbankable projects actually financeable. Key here, in addition to your RAIN score, is selecting a form of Security, then demonstrating capacity.  RAIN handles the rest.
3. Propose Security:  When ready to take next steps (usually via an Authorization to Verify letter, sometimes with a bank’s letter ahead of that), we will need to receive the following additional documents (if not included with RAIN):
   • A synopsis or “teaser” for the project, including its name, size/type, sector, if new or retrofit or expansion, location, and purpose of the funding.
   • Confirm the total funding required, and uses of funds (5-12 categories and % of each).
   • Estimated overall project IRR (over 15-25 years) and how you know you will achieve this key performance result.
   • The proposed type and face value of Security (cash deposits are just the currency and amount).
     Security is leveraged based on type, as follows:
     • Cash deposit secures 3x-4x in total investment
     • Standby LCs or AvPNs 1.2-2.5x
     • Securities 0.8-1.2x; Sovereign Guarantee 1:1.
   • A proposed monthly draw schedule — based on the amount of Security relative to total funding. Minimum is 12-15 months, with ~40% cash surety deposit or 80%+ Standby LC, but each situation is case-by-base.  Ask your In3 Affiliate or In3 team to assist.
4. Submit Proposal: Deliver the necessary documents by type. For example, a Standby LC also requires a “specimen” of the wording, so use the appropriate MS Word template to obtain this sample from the bank, and once approved by us, then an RWA letter or equivalent.

Developers can also explore DIY solutions and premium packages for additional support and guidance throughout the funding process. 

See the complete steps for funding from “inception to completion” via CAP funding.  Eventually the complete package will be needed, but to streamline as much as possible, the Six Essentials boil down to just these 3 as the “onramp” to the road ahead:

1) Project name, total budget and funding request in $ or €

2) Uses of funds – categories and amounts / % (sample format), and

3) Proposed security:  Two main DIY options:

A) If Product 1, DIY Standby LC, then also provide the issuing bank’s proposed SbLC verbiage and RWA letter using our templates.

B) If cash surety deposit, then please provide the proposed Authorization to Verify (ATV) letter.

That’s it!  Do you have access, or could you gain such access, to qualifying Security?   

• If yes or maybe a guarantee could be facilitated, please continue, learning more about these bank instruments to help guide you.  Note the following conditions when CAP funding is the best or only option.
• If not, can you qualify for any of our DFY solutions, (products 4-6) via the various checklists and higher due diligence standards associated with each option? In3 Registered Affiliates can often provide initial vetting to help you determine this.  Let them know which solution (product option 4, DFY SbLC, option 5, Ground Lease, or option 6, Strategic Advisory) you prefer.

The rest of this article is about how to arrange a Completion Assurance guarantee.  In brief, either …
a) via your own holdings (company balance sheet or other assets)
b) via a “sponsor” (such as an EPC contractor, construction firm or major equipment supplier to the project), or
c) by hiring an advisor to help you obtain it. 

More on guarantees as well as further instructions here.

In3’s CAP Profile Builder is where you will find all templates and tools to obtain a usable, bank-involved financial guarantee as well as to summarize your project finance request to pre-qualify.

Per the first 3 “essential” items above, we look forward to receiving your project name/type, total budget, uses of funds, and bank’s proposed guarantee (SbLC, usually) wording for our review.  All templates available at-a-glance here.

Once prepared, use our “Onboarding” System to apply for CAP funding

If you have questions, want help with preparation, or wish to benchmark your project against our standards, we probably have additional tools available at no charge.  Just ask us!

We will keep all information entirely confidential.  Our review for CAP funding is free.  We usually respond within 48 hours, but since Summer of 2021 we have been back-logged due to the COVID pandemic (presently about 2 weeks behind).  Thanks in advance for your patience.

In the interim, if you have questions, please review our background materials, including

• Definition of “Completion Assurance (financial) Guarantee“
• Decision-making guide: Guarantee Options to select the best one for your situation
• How we (happily) disrupt traditional project finance (full-length version)
• Indexed Frequently Asked Questions (CAP), and Success Tips, to please make sure we’ve not already answered your initial question online, then (if still needed) Email or call us +1.831-761-0700, preferably during US Pacific Time business hours (9am – 7:00pm PT).