National consumer lender that specializes in home improvement loans, EnerBank USA, announced a new Triple Option Loan for contractors to offer homeowners who are installing solar panels and expect to receive income tax incentives, rebates, and/or other significant payments. The new loan features a 12- or 18-month no-payment period and three re-amortizations of principal and interest over the life of the loan, providing homeowners the ultimate flexibility in choosing how they want to pay for their projects.
How it works
During the 12- or 18-month no-payment period, customers are not required to make payments on the loan. If the entire principal amount is paid off before the expiration of the no-payment period, all accrued interest is waived. After the no-payment period, the loan is re-amortized, followed by two more re-amortization events each May of the following years. This allows homeowners the option to apply rebates, bonuses or tax refunds to reduce the amount of their monthly loan payment.
“The Triple Option Loan gives tremendous flexibility for homeowners to pay off the principal of their loans or to reduce their monthly payments,” said Charlie Knadler, president and CEO of EnerBank. “Because the loan is re-amortized several times, homeowners have an extended period to apply bulk payments to the loan compared to other loan options.”
And, with the new Triple Option Loan, contractors have an additional choice in financing options they can offer their customers, helping them grow their businesses in the process.
“When contractors provide payment options for home improvement projects, they can achieve higher close rates, increase project size and grow their sales,” said Knadler. “Many home improvement contractors have seen sales increases of 30 percent or more. Offering payment options gives their customers more choices and greater spending power to achieve their home improvement dreams.”
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— Solar Builder magazine