How to Pre-qualify for Completion Assurance Program™ (CAP) Funding

Does your project qualify for In3 CAP funding?

To expedite access to CAP funding, please proceed with our fast/easy pre-application assessment that also registers your project in our system for next steps.

Project-related funding from In3 Capital Group partners, at these indicative terms, with no up-front fees, and CAP’s benefits and advantages, boils down to three checkpoints, which help determine if there’s a basic fit:

Will In3CAP support your project(s) industry/sector? Infrastructure projects, real estate and dozens of other non-M&A-type transactions (qualifying projects typically use funds to build, expand, or retrofit) with tranches or total funding of $25 million or more, almost anywhere, at any stage of readiness, in any supported sectors. Even if preliminary, you will also want to know that your project has a verifiable business case. This means that the core activity and business model can be well-supported to demonstrate reasonable (close to zero, ideally) commercial risk. Although formal feasibility studies and complete “shovel ready” status are not needed — anything that is beyond just an idea, as we are far less stringent than traditional project funding sources — your financial case separates the mere idea of an operating, money-making project from a commercial enterprise. A sincere effort at proving that your financial projections are realistic, and will be achieved, is a must-have for all project funding.
Checkpoint 1: Did you find the project you want to fund on the In3 Sector list? If not, better ask us to make sure it isn’t one of the sectors we do NOT finance. Later, once pre-qualified, In3’s team will check your MS Excel modeling per accounting standards to transparently show market rates and attainable performance estimates over the life of the project.
Monthly draw schedule (typically 18-36 months) for the required funds.
CAP funding is for building something, not normally for acquisitions or mergers, except when the seller is open to receiving payment in monthly installments. Construction schedules vary, but the cash required before, during and after construction works best when arranged in consistent amounts each month.
Checkpoint 3: See if there is a way to accommodate at least ~18 monthly transfers, contractually committed and automated, bank-to-bank. More about draw schedules | sample
Confirm the availability of some form of Security most often as a partial Standby Letter of Credit (intro to SbLCs), or cash surety deposit (compare these). Use your own banker, if possible, to save time. Or seek any of several available Security solutions.
For most developers, CAP Security takes some creativity (see below, if required), and In3’s team is here to help. Security does not need to cover the full amount of requested funding — cash surety of 25-35% or SbLC of ~50-70% is ideal, and remains in place for a relatively short term, returned before reaching commercial operations, to become equity.
Important to know that, for most banks, an asset-backed SbLC does not require cash behind it — a reasonably strong balance sheet (financial statement) or tangible assets can often gain support from the issuing bank. You apply for an SbLC like you would any other product, using whatever the issuing banker deems acceptable. Of course, most banks prefer cash, but less than 2% require it (for example, banks in China expect a line of credit drawn in the client’s name so they can earn interest). So explain that if you had cash, you could use that directly, and with greater efficiency, and thus would not need their SbLC.
Checkpoint 4: Start with a form of Security that seems easiest for you to arrange — mainly SbLC or cash surety deposit, then take next steps to confirm that, once the project’s funding has been committed (contractual arrangements finalized), the Security will be available, the last step before financial closing. This confirmation will eventually include an Authorization to Verify (ATV) letter.
NOTE: If using an SbLC, start by obtaining an approved “specimen” (sample) from your bank that’s based on our template language. SbLC Introduction and Next Steps

Additional Security Options to satisfy this Security, though SbLCs and cash surety deposits are by far most widely used:

- All types of usable guarantees and how to obtain one.
- Can’t figure out Security on your own? See if your project and team qualify for In3’s premium “Done For You” (DFY) services
- Contact one of our Affiliates, each of whom receive specialized training in our systems.

The above four checkpoints are usually reached in sequence, but we are flexible about how you get this done. See our NEW streamlined steps to help satisfy the 3 keys:
A. Ensure a basic sector and size fit for the funding we offer,
B. Propose a monthly draw schedule (sample on pg. 3), adding up to the total funding requested.
C. Obtain a CAG “specimen” (usually a Standby Letter of Credit) based on our template or cash surety deposit, and if using a bank-involved instrument, an RWA letter from the guarantor’s bank. If using cash surety deposit, then just the ATV letter is required to launch our due diligence, and if all goes well, receive binding offer of terms.

Once accepted as “pre-qualified” we typically move through Due Diligence quickly, assuming the required information is included. This also assumes your project’s proposal lines up with what we were told at the outset compared to what we discover during our evaluation.

The rest of this page provides further details of our requirements, summarized here.

If you’re missing the context or need a “big picture” roadmap, see Complete Steps & Anticipated Results for Project Fundraising Success.

To help you build a winning project funding proposal, use our Proposal Builder.