Wunder Capital is starting to own the world of solar financing. The Boulder, Colo.-based financial technology company recently launched its third financing product for commercial solar PV projects, Wunder Term Loans. These new Term Loans are designed for businesses looking for an accelerated path to ownership of their commercial solar project. Wunder focuses on the traditionally underserved small commercial market, providing businesses and EPC/developer partners with development and term financing for projects valued at up to $1 million.
Following the model established with Wunder’s first two financing products, Term Loans are diligenced, originated and managed in Wunder’s customer software platform. This eliminates many of the inefficiencies in traditional lending and often results in loan origination in as little as a week.
Term Loans are collateralized with the solar project itself, rather than an all-assets lien or personal guarantee. Terms are up to seven years and APRs are generally around 9 percent. However, the loans have no early payment penalties and borrowers are encouraged to pay down the outstanding principal balance as they monetize tax incentives and other benefits.
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A $100K Wunder Term Loan will cost the customer half as much in interest and fees as 20-year PACE financing at 5.5 percent. By focusing on shorter terms and eliminating prepayment penalties, Wunder’s Term Loans will help customers capture more of the benefit of going solar.
“The switch to solar is, for most of our customers, strictly an economic decision. It’s an investment” says Wunder’s CEO Bryan Birsic. “What we’re doing with this product is providing a way for our customers to see a better return on that investment.”
Wunder loans are eligible in all 50 states and Wunder deploys all of their financing products through partnerships with EPCs, project developers, and a network of national equipment manufacturers and distributors.
Further Reading: Four steps for converting more solar sales
— Solar Builder magazine
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