How Affiliates help clients secure mid-market project funding
- Screen for 4 “s” cornerstones – size ($25M+ but $50M preferred), stage, sector & security. Either interview the client or invite them to “pre-apply” through RAIN
- Evaluate whether or not the CAP’s 4th “s”, Security, is within reach on their own. Focus on those that have a source of Security Deposit – either their own asset depth, or with the help of a sponsor — and hold the rest as “pending” until they provide quite persuasive evidence (bordering on proof) of a viable Security Deposit. For all types of security we ask the client or sponsor to use an Authorization to Verify (ATV) letter to authenticate. This shows capacity and legitimacy – evidence that a real banker knows the account holder. With a Standby Letter of Credit (SbLC), we also ask that the involved banker(s) accept the SbLC’s wording requirements (a “specimen” or draft of their proposed verbiage is the first checkpoint), followed by a letter from the banker(s) stating their intent – they’re willing and able to deliver the SbLC on behalf of the client when the time comes. Share this shortest possible explanation of security
Clients often have initial questions, of course, but so do we! NEW POLICY is to ask the client to obtain their “RAIN score” based on In3’s pre-qualification assessment, which scores each of 10 multiple-choice questions, delivering a lot of data quickly and painlessly. Make it RAIN!
This “talk to the hand” until there’s evidence of security may seem harsh, and if you have only a few prospective clients, you can roll up your sleeves and offer more support and coaching, but please don’t expect In3’s staff to do the same. You can help clients the most by answering their questions and learning In3’s systems well enough to offer immediate feedback rather than waiting for us to review your situation. The essential step to launch CAP’s due diligence is an Authorization to Verify (ATV) letter, or equivalent, defined and described online here.- All templates at In3 CAP funding Project Proposal Builder
- Fundraising strategy check: When is CAP funding the best or only option? If you and the client are certain a guarantor is out of the question, find out why, and address the cause. This is the topic of Part 1, below, combining skillful presentation with handling objections.
- Consider sharing the Security Deposit Solutions Center to clarify if they will DIY (self-perform), or if they wish to procure the team’s time to assist with due diligence or Security, via one of the following services.
- New in 2026: DFY Ground Leasing, or Bring Security Deposits into reach by reducing the amount required in total CAP funding with a senior loan, after first arranging equity (CAP plus perhaps others) in the capital stack.
- RAIN and feasibility scores — if lead receives a top RAIN score (~80 points or higher), and accepts basic terms & conditions, then meet with them and then assign a simple 1-5 Feasibility Score (see below) to convey that to In3 management with the client’s package.
- Help the client to pre-qualify for either a DIY approach or, if their RAIN score is above ~80-85, consider if they are able to use a DFY Security Deposit solution, outlined above. When they facilitate their own security deposit, pre-qualification is marked by delivery of an Authorization to Verify (ATV) letter or equivalent.
See the Affiliate Handbook or attend an Affiliate Forum for more.