- What We Do
- Impact Capital
- Project Finance
- Renewable Energy
- Where We Work
Does your situation qualify?
For commercial loans starting at $1 million, our lenders look for
- Financially and commercially-sound project producing adequate cash flow
- Sufficient equity investment from your team or others (see point #4, below)
- Track record of success in the same or similar industry (see 5)
- Proven technology (see 6)
- A solid business plan — narrative and financials (development assistance available)
To qualify, the project team must be …
- Seeking medium or long-term debt finance of less than US$250 million: We offer limited-recourse, term loans in the range of $1 million – $250 million, typically for at least 3 years and up to 15-20 years. Grace periods of up to 24 months. There is no penalty for early loan repayment.
- A small or medium-sized enterprise (SME) or individual: US definition of an SME was recently increased to a maximum of $400 million in annual revenue, or if an individual, maximum net worth of $100 million.
- Working in one of these qualified countries: Ask about your host country’s eligibility for financing as this list changes periodically. The In3 loan program can provide financing for overseas investments that are wholly owned by U.S. companies, investors or sponsors, or, at a minimum, have an ownership interest of at least 25 percent. Either a U.S. citizen, equity or debt investor/sponsor must own at least 25% of the project; otherwise, there must be other, significant US involvement ( more ).
- Able to assume a share of the risks: Loans are available for up to 75% of the project budget for expansions*, and usually 50%-65% for new or “greenfield” projects. This means at least 20-25% of an expansion project’s costs, or 35%+ of costs for new projects, are usually committed by some number of investors (equity, debt or in-kind) to obtain the enabling loan. Loan guarantees are another option and often helpful. More: what equity/assets qualify?
(* Formal definition of “expansion” is 3 or more years operating history. Renovations, retrofits, and refurbishments — such as for energy efficiency — also quality as expansion loans.)
- Experienced: Most successful teams have a track record of success for at least 3 years in the relevant field.
- Using proven technology: Typically there is no remaining technology risk – products or services are proven to work reliably for the duration of the loan on a commercial scale. Innovation is usually in the business model, geographic focus, delivery, packaging, branding or integration. If there are still technology or commercial risks, ask us for an evaluation.
- Focused on positive social, environmental and/or economic benefits: Projects are usually a source of positive social and/or environmental impact, in addition to making money and creating jobs. This is often called an “impact investment” or “investing for the triple bottom line” or sustainability. There are as many ways of building these developmental benefits into business plans as there are companies. What are your business impacts?
- Turned down by a bank: If a bank has said “no” or cannot offer reasonable loan terms, and the above conditions are met or within reach, we can help. We offer low, fixed interest rate loans, based on US treasury rates – currently hovering around 2% annual percentage rate (APR) for ~10 year loans – plus a “spread” in the range of 2%-5.5% APR, depending on risks.
One-time loan origination, business development and due diligence costs vary from 0.5% – 2% of the loan amount, making this type of non-dilutive financing very attractive in the current economy – often 3.5%-5.75% APR when risks are relatively few.
Our job is to help with strategy, partnerships, and other tools (such as risk insurance or credit enhancements) to reduce or eliminate the perceived risks in order to help project companies get their financing reliably and affordably. In3 Finance Group collaborates with project companies to ensure the lowest possible risk premium (the loan’s annual interest rate) and keep the lowest overall cost of capital as reasonable as possible, while at the same time greatly increasing the odds of success. More at Services.
Our network has a 91% approval rate with loans of this type, and can help clients obtain loans in roughly one third less time than without our assistance, making our fees quite modest compared to the value delivered.