Completion Assurance Program (CAP) Process — In 3 Stages

How to finance mid-market projects with Completion Assurance Program™ (CAP) — faster, easier, better 

We follow three well-defined stages to greatly increase your odds of success with securing funding for middle market projects.  Pre-qualification (stage 1) eliminates most of the uncertainty that tends to hold up conventional project finance.  Everyone that contacts us appreciates a fast, definitive answer (yes or no) to funding feasibility.  We offer our expertise at reaching clarity far faster than our competitors, and if the initial answer is “yes” (your situation qualifies), we reach financial closing within 30 days at most. 

1. Prepare:  Apply & Pre-qualify for the Completion Assurance Program™ (CAP).  Pre-qualify by gathering the first 4 of Six Essentials, but first
   

   Click for 1-page protocol (technical overview)

   check that your project fits the basic conditions (mostly that it is at least $25 million or larger in an industry/sector that we can accept; see complete requirements for funding, then Email us a high-level summary to be sure, ideally a 1-2 page Information Summary or teaser, DO NOT SEND YOUR FULL BUSINESS PLAN).  
   You may want to scan our “Financeability Checklist” to make sure you are adequately prepared.
   Apply here; we will respond with a quite rapid “yes” or “no” or with questions.
   If we confirm our interest in funding your project, use our CAP Funding Proposal Builder to disclose the Six Essentials.  For complete step-by-step guidance, go here.
   Upon acceptance of the uses of funds, instrument verbiage, and proposed timing of monthly capital draws, we will launch our rapid due diligence, typically reaching closing in 30 days or less.  
   
   What to expect:  We will usually respond to initial inquiries within 72 hours; if you do not hear from us, call +1.831-761-0700 Ext 1 to check status.  
   
   
2. Present package to receive binding offer to fund project: Once pre-qualified, you will receive a binding offer to fund your project(s) within 2-3 weeks, typically.  If the offer is accepted, and contracts entered, we will reach financial closing within just a few days following delivery of the hardcopy of Guarantee Instrument. Without CAP, the timeframe to closing and first funding via alternative funding pathways is likely the more traditional 90-120 days, which starts once we have a complete, accurate and polished file that highlights only what investor’s need to know in summary form, with financials prepared per US GAAP or IFRS accounting standards.  Without such preparation, timeframes are anybody’s guess.  Far too many projects never reach closing!
   NOTE:  If we are bringing in your project’s sponsor (as guarantor and/or equity partner) for funding, doing additional packaging or development work under a Management Services Agreement, please refer to the timeline for that Statement of Work (SOW).
   
   
3. Partner:  Using monthly draws of funding, proceed to finalize any remaining development work, design/engineering, build, commission and launch commercial operations. First draw of funding within 30-45 days of closing, with subsequent draws per pre-approved schedule (see examples on pgs. 3-4).  In practice, draws accommodate critical path construction milestones and cashflow requirements, ideally the same amount each month.  Once approved by the funding bank, the transfer of funds is literally guaranteed.  

That’s it!  Compared to traditional project finance, our novel approach is streamlined and far more systematic / programmatic / predictable.  As a result, it is also much faster, once you are prepared.

NEXT STEPS & FACILITATION GUIDES

1. Troubleshooting Guide:  What if a project does not qualify for the Completion Assurance Program funding?  Short answer:  consider alternative paths to mid-market project funding above $25 million ($50m+ preferred).  But don’t be hasty; CAP funding may be your best or only viable option per this infographic.  
   Then ask yourself why the project/portfolio does not qualify for CAP funding?  Here are some possible reasons and solutions:
   1. There is no apparent guarantee available.  Who have you asked to “sponsor” so far? What are the results?  Identify your situation below… history shows you can get a very fast “no” if you don’t present your project in the proper light, ask the right questions, and ask in the right way.  Solution:  request our no-cost materials to help with this and note these scenarios:
      1. Is the prospective sponsor willing, but just unable (assets already tied up elsewhere, or lacking financial depth in the first place)?  Ask someone else.
      2. Do they have capacity, but just unwilling?  Do not accept the first “no”.  What are their specific concerns? Contact In3 for our presentation materials to help gain mindshare.
      3. They have capacity and seem willing, but the trouble is with their bank:  Bankers can easily misunderstand what’s being asked, depending on their own background and experience.  Most will not be familiar with this commercial context because it is innovative and new.  CAP’s approach is unexpected by the vast majority of the world’s 10,000+ banks and their 50,000+ bank officers.  Consider these options:
         1. Asking someone else at the same bank who is more familiar with this sort of guarantee?  The most widely-used instrument is a Standby Letter of Credit or Bank Guarantee (SbLC/BG), though sometimes there is baggage, or confusion, as SBLCs can also be arranged for diverse undertakings that include commodity trade finance, which cashes the underlying asset at completion, the polar opposite of what CAP funding requires — ours is unblocked and released at COD.
         2. Ask a different banker at a different branch or at a different bank. 
         3. If you have a banker that understands the request (more on communicating with bankers) but has questions or concerns, please contact us or your involved In3 Affiliate with the specific points raised to request help.
   2. There is no equity carried interest available to the funder:  If your project is entirely ready to turn dirt, with considerable investment from your side to get to that point, why might you want to take on a minority equity partner in order to expedite funding?  Explore answer. 
      Still set against offering an equity stake?  Consider one of In3’s 100% Loan-to-Cost debt options, minimum $25m, subject to much higher due diligence standards (completion risk intolerant) and involve initial vetting or due diligence costs ahead of closing.  Apply now
   3. The request for funding is below $25 million:  Can you bundle or group together more than one project or combine/aggregate together initial development costs with the other costs to reach at least $25 million ($25M-$50M is fine for CAP) total requested capital?  If not, consider our advisory services.
   4. Project is in an unsupported sector:  Tobacco, Oil & Gas, weapons, etc.  Sorry, we cannot help with any sector that does social or environmental harm. 
   5. What if seeking M&A to sell/acquire, roll up or form a merger?  Or seeking venture capital or trade finance, seed-stage venture funding, or other (non-project) forms?  Instead of CAP, or our alternative funding programs (more), your situation may require a separate Management Services Agreement; see fee-based advisory services. 
2. Synopsis of CAP funding (cover letter) | 1-page CAP funding “teaser”
3. GET STARTED NOW: 
   1. Prepare the Six Essentials by Building your Funding Proposal to pre-qualify more quickly.
   2. Complete STEPWISE GUIDE to CAP project fundraising
   3. How to obtain a Sponsor/Backer (to bring a guarantee)
4. Apply for funding or other services | Register in our tracking system

Additional Resources & Reference 

1. Introduction:  Why In3 CAP funding? — it’s purpose, how it is different and what advantages that brings
2. How In3 CAP solves Four Notorious Problems with securing traditional, mid-market project finance
3. Deciding which type of guarantee makes the most sense; guide to Completion Guarantee Facilitation
4. 14-minute video “Why CAP and How It Works” from 2020 (update coming in 2022) — explains business logic and mutual protections provided by this program.
5. Formal (banking) protocol “from inception to completion” (1-page PDF version) 
6. View Animated Developer Briefing online (Google doc) [Note program name change from CGP to CAP in 2021]
7. Register to access Recorded “Developer Briefing” Webinar (August 2020, also uses the legacy program name, CGP)

Contrast this relatively simple CAP funding process to what is involved in securing project funding without a Completion (financial) Guarantee, either because the project does not qualify for CAP at all (see above … possible reasons include that it requires less than $25 million and is thus too small, is M&A, not new construction, or requires venture capital instead of project funding), see In3’s generic funding process. 

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