In3 CAP Security Solutions

Arranging affordable, least-cost capital for mid-market impact projects worldwide

Our flagship program, In3CAP, features six product options that all help expedite and control the cost of capital.  Which one is right for you?

Here are In3’s project funding options in order from least to highest initial cost.  The first 3 programs are essentially free to developers — no initial cost to get under contract for up to 100% funding.  The second set of “Done For You” (DFY) options are for project owners that would struggle to make these arrangements unassisted, a higher level of service in exchange for a fee within a well-defined Scope of Work, depending on the work you want our team to perform:

Standby Letters of Credit	Cash Surety Deposit	Other Types of Security
Product 1 – DIY SbLC	Product 2 – DIY Cash	Product 3 – Other DIY Solutions
Client facilitates a bank’s SbLC	Client arranges a Cash Surety Deposit of 25-35% of total funding	Client facilitates other Security
Done For You (DFY) Solutions:
Product 4 – DFY SbLC	Product 5 – Ground Leasing	Product 6 – Bespoke Security DFY
	Click any image above to know more
	Downloadable templates (in MS Word)

Quick Guide to Decide which solution is best for your situation

First, important to know that for the DIY solutions (products 1-3, above), you do not need to bring either a Cash Surety Deposit or a bank-involved instrument for the full amount of funding you required. Substantial leverage can be applied. The exact amount of leverage you use has a direct influence on available terms and timing for the capital draws. See comparison chart to know more and decide.

Second, worth knowing that the vast majority of In3’s client use either a Cash Surety Deposit (Program 2), or Standby Letter of Credit (SbLC, Program 1). And if you have a choice between these two, cash surety has definite advantages over an asset-backed SbLC (compare both), such as the simplicity of using cash.

If none of these seem within reach, perhaps a “sponsor” would help? If so, you would be wise to check that In3’s interested in providing funding, perhaps requesting an Expression of Interest (EOI) through your Registered Affiliate, so you can approach prospective sponsors showing them you’ve actually checked. It often makes sense to involve a guarantee sponsor or third-party backer (individuals or companies with financial depth, often underperforming or distressed assets, thus with little or no free cash flow to make an incentive of extra cash and/or other benefits reasonably attractive) when developers cannot bring their own guarantee.

The main downside of SbLCs, as well as the other financial, bank-involved instruments, is that they’re more complex than cash surety. That complexity also provides greater comfort to those who are already familiar with such instruments, but some developers find that the learning curve is too steep to justify these incremental advantages. How complex is an SbLC, BG/PG, or AvPN? There are both banking rules as well as International Chamber of Commerce (ICC publications easily available) legal venue rules that attempt to balance the interests of both sending and receiving parties. You don’t have to be an expert in this area to use such an instrument, but sometimes outsourcing the task is your best move. Tips

How it works (sample): Technical protocol for Standby Letter of Credit (SbLC) — download 1-page PDF

Enter In3’s Bespoke Done For You (DFY) Solutions

But, you’re not in this alone. In3 is here to help. We have organized around these three “Done For You” (DFY) solutions specifically because so many of our clients cannot arrange their own Security, but are nonetheless fully qualified for CAP funding, with the ability to easily satisfy the higher standards (see checklist) of such DFY services. We will, of course, evaluate and openly discuss odds of success before entering any fee-based contracts. Impact Guarantee Fund also sets us apart from casual “joker brokers” that have no verifiable track record of success.

• Program 4 explains this further for a DFY Standby LC; see also In3CAP Guide to Bank-issued Financial Guarantees
• Program 5 gives an overview of the Ground Leasing option
• Program 6 outlines the service offer to obtain advisory services to help you sort this out.

That said, CAP funding is not for everyone. What are the situations when CAP is likely your best or only option?

How In3 CAP funding delivers exceptional value

Most project financiers expect developers to have substantial “skin in the game” — that is, owner equity contribution and/or a hypothecated collateral asset — to take on a meaningful share of the risks.  If your project can meet or exceed our relaxed criteria for low commercial (business) risk, with a known customer in a provable market (such as with offtake rates or purchase pricing history at that location), there may be attractive options for funding your project or portfolio. 

If you have not yet proven the project’s commercial feasibility, you can ask us to assist with the analysis and transparent disclosures needed to make that case, or we can offer our feedback on whether or not your project already meets these standards.

Summary of Key Takeaways by Solution

Next Steps

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