If your funding request does not fit CAP’s requirements, here are the most common reasons and recommendations to help you handle these situations:
- No CAP Security can be arranged. How do you know this? What have you tried so far? Talking to an Affiliate office may help open new pathways, but if you’ve already reached a known impasse, and there’s no chance “Done For You” (DFY) security is viable, then the alternatives are outlined on our New Client Resources page.
- Not seeking project finance at all: Instead, wanting to raise venture capital below $15m or for a Merger, Roll-up, Acquisition or Refinance (usually requires lump sum distribution instead of a construction-oriented draw schedule over minimum 12-15 months), short-term bridge financing, or other non-CAP funding. See venture finance options.
- Seeking funding for a project that causes or perpetuates social/environmental harm. Sorry, we cannot help, except to strongly recommend you find another, more sustainable sector. The long-term risks of causing harm will eventually reach a limit, either through being held to account or simply sector obsolescence. Sure, you can still buy cigarettes, but the tobacco companies took a hit, as will providers of other addictive substances. We won’t run out of petroleum any time soon, for example, but as the saying goes, the Stone Age didn’t end because we ran out of stones.
Evaluate & Regroup?
If you do not qualify for our flagship Completion Assurance Program, and none of the above scenarios fit your situation, please continue with these next steps, 3D’s: 1. Debrief, 2. Decide, and 3. Do. Click on the underlined links or scroll down to start.
1. Debrief — What do your RAIN scores mean? What do you have to show so far? What additional actions might you take toward greater bankability/investability? This “bankability status” is usually necessary to pursue other project funding options.
2. Decide — Who is available to help that can skillfully, reliably and affordably perform which tasks? Which tasks are worth doing (effort vs. impact)? What are the “Must Have’s” vs. merely “Nice to have’s”? This will hone your strategy and consolidate your resources to go deeper, a known success principle, once you are certain the direction is valid, feasible, and worth doing.
Such validation is best obtain from qualified outside sources, not your own internal verification, as the latter is notoriously subject to various fallacies (lack of objectivity), from Sunk Cost Fallacy (just because you’ve already invested in it doesn’t necessarily make it valid, especially if the cost of withdrawal from it seems greater than staying the course) to Confirmation Bias, the tendency to favor information that conforms with pre-existing beliefs. This is also called the “hammer-nail syndrome” — when you’ve got the right solution in your hands (a metaphorical hammer), then all you will tend to see are nails! Bam!
3. Do — Now that you know what needs to be done, and who can do it, take action. There are several program options, outlined below.
Click on a topic above or scroll down …
Each of these D’s are provided below as an in-depth self- or team-evaluation activity.
DEBRIEF:
Even if your RAIN score is near the ideal, you probably want to take a moment to step back and “debrief” (review) your results so far, first by yourself, using the questions shown below as a guide. Then include other team members and stakeholders — other principals, sponsors, investor partners, intermediaries, consultants, etc. — sharing highlights of what you’ve discovered so far, explaining next steps, and asking for feedback where necessary.
Some questions to help find the “aha’s” that help focus and organize next steps:
1. What have you learned so far? Recap for yourself if anything has changed … if you have gained clarity about what is considered a ideal score, if there were any surprises, or other things you noticed.
This 9-question assessment answers most of the “big picture” concerns and common challenges, but certainly not all of them. It helps project teams avoid the common mistakes others have made, and prepares you to accelerate success, obtain financing at the best available rates and reach a closing more reliably, predictably, with fewer issues and less stress. Learning as much as you can is absolutely key. Knowledge is power.
Still have unanswered questions? Great! Are they the same questions you had when you started, or different now? Be sure to note both discoveries and remaining questions for further discussion, as this list will support decisions about action steps.
2. What do you have so far? Take careful account of any high scores and give yourself credit for what you’ve achieved so far. When engaging others in conversation about your project’s chances for success, lead with these strengths. Use your awareness of established strengths to put any less-than-perfect scores — also known as “business development opportunities” or BDOs — in context.
3. What additional actions might you take? Is your project truly ready, or are additional actions needed?
If its project finance you seek, review your RAIN results, paying careful attention to any low or middle scores. Make a thorough list of all possible actions you could take to reach the ideal — 100% ready, A+. WRITE THEM ALL DOWN (open a new file entitled “Possible Actions”) without editing or deciding for now.
What you decide to do next depends on your qualification options (whether CAP, an alternative program, or other funding or service needs), overall RAIN score in general, your team’s particular strengths and capabilities, and your work style/personality.
Go back through the list of possible actions that you just prepared (via Question 3, above), and consider:
4. Who can do what? Realistically, do you and your involved team members have the required expertise and bandwidth to handle these items? Who can be asked to take on specific actions? Will that person or team get the desired results without stretching beyond their means? Are there skill or knowledge gaps?
5. Evaluate Impact vs. Effort. What’s the “bang for buck” tradeoff (how much work of resources are required for the potential benefit) if you were to invest in reaching the next level of readiness? Will the results of that next layer of effort be worth it?
Some items are fairly simple (as described in the RAIN tool tips that came with your report, such as an adequate pledge of collateral, Question #8), while others require a more serious effort (if you have no business plan, that will take some work).
Not sure what sort of effort would be involved? Write down your questions or discuss with colleagues or qualified service providers (or just ask In3).
6. Finally, sort this list into two categories: A) “Must have’s” and, B) “Helpful, but not essential“.
Now you’re ready to discuss these preliminary action items, and any remaining questions you may have, with your team. When the time is right, involve an In3 Finance professional in the results of this conversation. See “Do” options below.
There are three main options, depending on your response to assessment Question #3, Project Status, and overall RAIN score:
I. Seed Stage: If you responded to RAIN Question #3 that you do not yet have a written business plan, we have to ask: how do you know there’s a viable, investable business? If others have built similar profitable ventures or projects, that’s a good indication, but not sufficient. Will you take the time to construct a business plan now, perhaps by hiring someone to help you do that, or … might it be best to first complete a feasibility study?
Feasibility studies are a form of focused research and development aimed at demonstrating a profitable business case — that there’s sufficient money (cash flow) to be made — to decision makers. Pioneering entrepreneurs and many professional business planners use such studies as evidence that the business concept is valid, worthy of further investment. Grants and technical assistance can often be used to conduct such R&D, where the principals provide management oversight, labor or other capital contributions if the study reveals a business case. In3 Group has experience with many grants for a select set of countries. Ask us if you happen to qualify.
You can either hire In3’s advisory team to help (funding may be available for such efforts via sources like World Bank Group, sovereign grant funds from various governments and foundations, or United States Trade & Development Agency, USTDA) or, if you’re convinced that the project’s economic fundamentals are solid, get that evidence — how you know for sure — into written, business plan format before taking next steps.
II. Early Stage: If you responded to Question #3, Project Status, that a business plan exists, but it needs work or substantial revision, you can either produce a project summary (2-4 pages; template available) yourself, or hire In3 to help.
III. Prepared for investment: If you responded to Question 3 that you have produced a polished, accurate business plan and financial model, please indicate if your RAIN score overall is
a) 79% (B) or below — in which case we recommend you hire In3 to carefully prepare your funding proposal (indicate program option #1), to avoid any unpleasant surprises, or …
b) 80% (B+) and above — contact In3 to move forward (program option 2: complete pre-application)
You can always go it alone, or pick a different qualified service provider (not recommended, of course); either way, you may want to first discuss your RAIN scores with an In3 advisor.
Ready to take action?
The next step for well-qualified projects (overall RAIN scores above 90 or so): summarize your project business plan information (register here) and include your RAIN financeability report for a free initial consultation.
Additional Options:
- What’s our process overall? Visit funding process for more on how we work.
- Start over: Return to RAIN assessment tool
- What’s the difference between venture finance and project finance? (more)
- Does your situation qualify for US institutional investor support (lowest interest rates)? (more)
- About In3 services and capabilities (more) or request our presentation for obtaining a sponsor under In3’s Completion Assurance Program (In3 CAP), a way of leveraging Financial [completion] Guarantees to streamline the process and greatly reduce the cost and risk of securing mid-market project capital.
- Frequently asked questions (see FAQ) or All FAQs
- Contact us with any questions or requests