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A Lender’s Guide to Solar Loan Origination

 

Light from the sun takes a little more than eight minutes to reach us here on Earth and the average solar loan decision processed by FNI takes less than one minute. But, if you’re a solar lender or installer implementing a new LOS platform it will likely take more than just a few minutes to launch. However, If you work with the right partner and understand your objectives, adopting new software won’t be a giant incandescent mess. Taking the time to outline your implementation deadline, necessary bureau integrations, proposal generation, and financing types will light the way for an efficient loan origination software implementation.

 

Are We There Yet?

Solar Loan Origination Speed to Market

When you work in an industry that quite literally runs at the speed of light, it can be understandable that you want your vendors and partners to work just as quickly. If this is your perspective, working with an LOS partner that speaks of timelines in weeks—not months—is probably an attractive option. This is where experience comes into play. 

 

An LOS provider with support-oriented, solar-specific experience will understand what questions to ask early on in order to get things up and running as quickly and efficiently as possible. One major factor in a successful LOS launch is being integrated with the proper credit bureaus and having correct and current bureau subscriber codes. While obtaining bureau subscriber codes can be a months-long process, a true LOS partner will be able to provide existing and secure subscriber codes, shortening this lead time to mere days.

NOTE: Many FNI solar loan origination platform implementations take place in less than 12 weeks, and our partners are up and running with bureau subscriber codes in just days.

 

Connect the Dots

Understanding Solar LOS Platform Integrations

The universe of solar loan origination is far more vast than just the final credit decision and solar install. Data points such as home value, solar capability, and other factors play a role in generating a proposal and credit application. Your solar loan origination platform should provide built-in integrations that handle the entire application process from start to finish. Integrated systems like Corelogic and Sighten allow for home valuation, system design, and solar proposal generation make your LOS platform an effective sales tool, not just a decisioning tool.

NOTE: The FNI Solar Blueprint™ Platform has integrations like Corelogic and Sighten as built-in tools, ready to use by solar lenders and installers. For a full list of bureaus and integration partners, take a look at our full list of integrations.

 

 

Navigate the Options

Understanding Solar Financing Paths

Whether your solar installation is residential, commercial, a secured loan, or PPA (power purchase agreement) you’ll want to manage all applications in one place. While data points and information capture may differ between residential and commercial installations, as well as throughout the various financing options, designing the application process to prepare for these scenarios in advance will create an invaluable sales tool and an educated and satisfied consumer along the way. When searching for a new loan origination software platform, ask your potential LOS partner how all these various financing scenarios can work within a single application flow.

NOTE: The solar loan origination experts at FNI specialize in designing seamless decisioning processes that span across multiple data points and scenarios. If you have any questions about how to implement secured loans and PPAs into your solar loan origination process, ask away in the chat box below.

 

Follow-Through the Light

Finalizing Decisions and Following Up

In any loan origination process, communication is key. Your helpful, new, solar LOS platform should include ways to communicate with potential and active borrowers. For example, notifying borrowers of their approval, application status, and making them aware of any open stipulations or unfinished applications is a great way to engage throughout the decisioning process. These types of messages can be sent automatically via text or email and help to lower your abandonment rate on applications, particularly if borrowers are applying online without a lender or installer present. 

Once a loan has been approved, consider using tools like a CRM (customer relationship manager) to follow up with borrowers and update them on new developments in technology or other upsell opportunities.

 

The solar loan origination experts at FNI have spent decades navigating the system of solar fintech. If you’re looking to build a new LOS platform for your solar organization, learn more about the FNI Solar Blueprint™ platform or request a demo with a real person today.