Commercial Financing Solutions
POWERSYNC offers a variety of commercial solar financing solutions for all types of commercial applications. Allowing companies to maintain cash flow, minimize risk and stay ahead of the competition. Call us today to find out more about our commercial solar financing solutions.
Commercial Solar Financing - Types of Structures
Operating Leases – A Lease that meets the four major qualifications of FASB 13. The qualifications include:
- No Bargain Purchase Price;
- No Automatic Transfer;
- Present Value of Payments not to exceed 90% of the Equipment Cost and;
- Term of the Lease not to exceed 75% of the Economic Life. It is the responsibility of the Lessee to review and obtain approval from their auditor in regards to a lease structure qualifying as a FASB-13 lease.
Tax Lease – A Tax Lease is specifically structured to show that the benefits and burdens of ownership all vest with the Lessor. Under a Tax Lease, the Lessor receives tax depreciation benefits, ultimately translating to a lower overall cost to the Lessee. In addition, the Lessee writes off the rent expense in the transaction, often times resulting in an acceleration of tax benefits and an overall tax bill reduction.
Capital Leases – A Capital Lease is one in which any one of the criteria for an operating lease is not satisfied. From a financial reporting perspective, this translates to a lease structure that has the characteristics of a purchase agreement. Such a lease is accounted for as an asset and as a related obligation on the balance sheet.
Equipment Finance Agreements – Otherwise known as an EFA, it is a security agreement where the secured party takes a priority interest in the equipment.
The Application Process
- The commercial application is filled out by the dealer or customer and submitted online.
- Completed Project Summary executed by dealer’s customer is submitted with completed financial package via email or fax to our credit partners. Our credit department will qualify the loan for submission to selected lending pool. If dealer does not submit the financials they will be collected from the customer by our credit partners.
- Upon receipt of the Completed Application, Executed Project Summary and Financial Package our credit partners will do a preliminary review to determine if the opportunity meets all requirements within the credit criteria before forwarding to a particular lender.
- Dealer shall be notified if application is put into a pre-qualified status and sent to a lender or declined due to credit application requirements . If the application is pre-qualified, a $500 (non refundable) lender application fee will be due at the time of submission to Lender. Lender also may decline or ask for additional information before proceeding.
- If the application is approved by the lender, a Letter of Intent (LOI) will be sent to the applicant for execution and return.
- After completion, commissioning and inspection, funds due to dealer will be sent ACH directly to the dealer according to the lease directives. Soon after the application approval of the commercial financing for solar the project begins.
Commercial Solar Financing Terms and Conditions
- Typical terms range from 3-7 years, 10 year under certain credit models
- Terms are a result of credit and transaction dollar value
- Finance amounts from $20,000 – $100,000,000+
- Flexible Payment Structures
- $500.00 lender application fee after pre-qualification
Commercial Solar Financing Required Documentation
In anticipation of the loan request, you may need to prepare to submit documents to the lender for review. The following is a partial list of lender required documentation for final obtain loan approval:
- Submitted Application
- Last 2 year end Corporate Tax Returns with Schedules
- Last 2 year end Audited Statements with Notes
- Last 2 year Personal Tax Return for each Principal owning 10% interest
- Personal Financial Statement for each Principal owning 10% + interest
- Latest Interim Operating Statement
- Signed project estimate/contract
POWERSYNC also offers industrial solar power financing.