Greentech Renewables Finance Solutions in action working to save customers time and money.

In today’s high-interest rate environment, installers are right to be looking for the most competitive financing options. Most solar lenders fall into one of two categories: local Credit Unions and National “FinTechs” (think Mosaic, Sunlight, EnFin, etc). Greentech Finance Solutions (GFS) is here to help our customers navigate the ever-changing landscape of solar lenders. When speaking with installers about these two financing categories, GFS Specialists typically review the following list of pros and cons:

Credit Union Strengths:

  • Local institutions. Most homeowners already know and trust (and possibly bank with) local credit unions, making it easy to introduce them to a solar loan product they offer.
  • Low/no dealer fee products. This is typically the primary or only offering for many credit unions and works well for borrowers looking to pay off their solar loans quickly.
  • Low cost of capital. Local credit unions often have meager rates on low or no-dealer fee products, due to raising money directly from depositories, using stricter qualification criteria (think 700+ FICO), and offering shorter loan terms.

 
Solar FinTech Strengths:

  • Low Monthly Payments. FinTechs typically will offer longer terms (25 or 30 years), lower APR options (offset by dealer fees), and a re-amortization schedule structured around monetizing the 30% ITC, all of which create the recipe for lower monthly payments than Credit Unions typically offer.
  • More Approvals. Most FinTechs can accommodate a wider spectrum of borrowers than Credit Unions, offering a lower FICO floor, higher max loan amounts, and an allowance for wrapping additional home improvements like batteries, reroofs, and EV chargers into a single loan.
  • Easy Sales Process. FinTechs have invested heavily in tech platforms to enable a one-call close with instant, automated credit approvals, digital doc signature on demand, and minimal additional paperwork from the borrower. Since many homeowners have busy lives, a frictionless sales process can be the difference between a signed deal and a lost opportunity.
  • Scalability. Due to their overall ease of use, national scale, and large funding capacity, FinTechs are typically the preferred product for fast-growing contractors. 

Greentech Finance Solutions gives installers the cash flow support needed to scale a growing business without unnecessary risk. By leveraging direct pay partnerships with lenders, GFS helps installers order all the equipment required to install their financed projects while protecting them from the risk of upfront disbursements or overextending credit lines. 

Please reach out to your local GFS Specialist for the latest information about how our direct pay partnerships with national FinTechs can help Greentech Renewables customers sustainably grow their businesses. 

Published
1 month 3 weeks ago
Written by
Alex Atmore