In3CAP funding may be unique in the project finance realm in that we do not require proposed projects to be “shovel ready”. This phrase is open to interpretation, and standards/expectations vary widely, but we eliminate that constraint, as we can fund anything that fits the other 3 S’s — minimum Size, a Sector we support, and a source of Security, the developer or a sponsor — that is reasonably beyond just an idea.
If your project is still just seed stage — an identified opportunity, but no business plan or other method of demonstrating reasonably low commercial risk — please complete that work before asking us for funding. Or if you’re reading this to know more about current well-timed market opportunities, see this article to take those important next steps.
How much “Shovel Readiness” is enough?
Adequate readiness depends on the funder, and standards for this are so widely varied that we took action and built CAP funding to solve one of the most time-consuming and notorious problems faced by the “alternative” project finance industry — the blind alley of preparation for funding, where most developers start digging and nobody knows when they should stop.
The better model is having a known set of conditions, a very sort list (4 “S” items, in our case) that, once met, will radically improve the odds of reaching closing, receiving funds and building the project into cash flows and other benefits for its owners.
Most project financiers also become extremely slow and careful to not overinvest in vetting or due diligence, creating the need for (often ill-informed) judgement calls about suitability of any project. They become extremely specialized in a quite narrow set of parameters (size, location, project type and/or sector) as a survival mechanism, to avoid excessive overhead costs, and to maintain something akin to efficiency.
We work differently. Global reach, at any stage, across more than 30 sectors, and with a known equation for terms, and known conditions, we can predict outcomes much more easily with CAP funding than most. The ultimate state of readiness is called “bankable” — also a bit open to interpretation, as banks and bankers each have their own personality. But noting this ideal, with no light shining through any remaining gaps or holes, bankability is the gold standard.
So our second action was to construct an elegantly simple assessment tool to illustrate the difference between bankability and the CAP funding opportunity. Using “rules of thumb” (shorthand methods that are implicit in project finance culture, more about quality and content than form or appearances), any project’s stage of readiness can be measured, which is why we developed RAIN — Readiness And Investment Navigator (start now), a free, multiple-choice assessment that scores and evaluates as both a strong indicator of bankability and degree of fit for CAP funding.
The closer to bankable, the more options and choices of funding you will have available. For example, if the score is high overall, but Security is an issue (because the project owners/developers have limited financial depth and insufficient network or just an inability to facilitate their own Security Deposit), then proposed project may qualify for In3/IGF “Done For You” (DFY) services. Browse all 6 Security Solutions.
Is it possible to be too late stage?
o, early stage Some requests are potentially too late stage for CAP funding’s main purpose, but sometimes we can make M&A work, so long as the capital to pay the seller of an existing project (or set of them) can be drawn over time, not in lump sum. Bridging solutions may exist for this scenario. Monthly draws are not an issue when new construction is involved, where project developers do not need all the money at once, mirroring the true cash flow demands of expansions, retrofits, conversions and of course “greenfield” (ground up) construction.
CAP delivers up to 100%, full leverage funding, mostly often for new construction, expansions, and retrofits. Is your project plan or presentation still fairly early and/or still in development? We may be able to assist with further development work, if needed; gain assistance or shop for a solution