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Director of Operations at portfolio company, Wunder Capital, sheds some light as to why solar financing can actually be detrimental to borrowers if the term is either too short or too long - the former doesn't provide the business with the full potential of ROI and the latter can actually raise costs over time. In this relatively new (and growing) market of solar financing for small commercial projects, finding the right economics for the borrower is crucial. As most businesses see this as an investment, Wunder Capital keeps positive ROI in mind with its short-medium term financing options.
“You’ll save money from day one” We can all agree that the rise of more financing options is a very good thing for a market segment starved of capital. However, project origination and lending in the solar industry, particularly the small-commercial segment, suffers from an over-focus on short-term costs. We are currently working with engineering, procurement and construction contractors and developer partners in 22 states, and the most common pitch to customers looking for financing is generally some version of “save money from day one.” It’s a proven sales tactic, and it works.
http://solarindustrymag.com/why-the-commercial-solar-market-needs-shorter-term-loans
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