Borrow

SunFunder raises capital from institutional & accredited investors and provides inventory, working capital and structured asset finance loans to solar companies in emerging markets. Our customers include both residential and commercial solar Distributors, Wholesale Importers, Manufacturers and Pre paid residential solar businesses.
We do not finance pilot/demonstration projects, our loans are aimed to scale companies with a track record of success.


Products

Inventory Finance (up to $300K)

Short-term USD loans (6 to 12 months) to build inventory levels and meet growing product demand.

 

Working Capital Loans ($100K-$2M+)

Longer term facilities to assist our customers with ongoing working capital needs.

Structured Finance ($2M+)

Financing packages for our customers with significant track record, which include our Structural Asset financing Instrument (SAFI) product.

First, please read all the information on this page. Then apply below.

Timeline

Our goal is to move as quickly as possible, while maintaining our high quality diligence and risk assessment and mitigation. Depending on the type of loan, the quality of the information we receive and the timeliness of the responses, getting a loan from SunFunder can take 30 to 90 days.

1

Submit Application

Begin the diligence process by submitting an application form to determine eligibility

2

Initial Diligence

Submit historical financials and set up an introductory meeting.

3

Final Diligence

Document request and Q&As to finalize diligence

4

Credit Committee

Credit committee evaluates investment memo and approves terms and covenants

5

MLA

Sign a master loan facility for immediate* first disbursement

6

Monitoring

Quarterly monitoring allows for hassle-free follow-on disbursements


Causes for delays

Here are some things that typically cause delays in the loan process.

  • The financials are not at the quality we require
  • Missing or incorrect data
  • Slow responses to diligence questions
  • Jurisdictions where loan agreements must be physically executed
  • The borrowing entity is registered in a country where we haven't yet done business

Risk Assessment

We use a comprehensive approach to assess the risk of the companies we lend to. We look very closely at the financials of the company to evaluate its financial health and capacity to repay. We then look at domain specific data points that help us assess the quality of the business. We then perform predictive analytics on datasets associated with the companies and their end-users to quantify the risks better. Finally, we use specific legal structures and loan terms to mitigate the risks associated with the facility.


SunFunder's Risk Assessment Model

Financial health

Liquidity

Debt Coverage

Profitability

Efficiency

Banking Performance

Assets

Cash Flow Analysis

Repayment History

Non-Financial health

Management

Market Position

Operations

Technology

Warranty Strength

Inventory

Distribution Strength

Customer Service

Data

End User Credit Scores

End User Repayment History

End User Banking History

End User Mobile Recharge

Realtime Data

Revenue projections

Cashflow projections

Structuring

Match asset-liability position

Tailored financial covenants

Interest alignment

Risk-adjusted profitability

Asset securitization

Ringfence cash flows

Reserve account

This approach helps us to be very principled and data-driven about how we assess risk and mitigate it. So far we have had less than 1% payment default rates over 4 years and 100 loans and we continuously tweak and improve this process to maintain our performance.


Cost

Pricing is determined by two main factors:

  • During the diligence process, interest rates are determined by the SunFunder Risk Calculator; our Credit Risk Assessment & Monitoring tool tailored for the sector.
  • As our relationship history grows, customers that demonstrate good performance and a positive repayment track record gain preferential pricing.

Security & Collateral

We understand the market we operate in and are therefore flexible when it comes to collateral. We do accept collateral with combination of:

  •     Cash
  •     Property & Mortgage
  •     Lien on Equipment
  •     Debentures (Fixed & Floating)
  •     Guarantees
  •     Purchase Orders
  •     Insurance
  •     Receivables and/or Inventory

Monitoring

After a borrower receives funds from SunFunder, we continue to monitor the health of the borrower. We use monthly or quarterly check-ins where we review updated financial and non-financial information about the business. We are focused on building long lasting relationships with borrowers and meet their capital needs over time. Once a borrower establishes a track record with us, repeat loans take even lesser time.

At minimum, we require:

  •     Quarterly financial statements
  •     Quarterly review meeting / call with a member of management to also discuss any non-financial developments

Depending on loan type, additional requirements include:

  •     Monthly aging report / end-user payment data
  •     Site visits

Borrower Criteria

A company must meet the following criteria to be eligible for financing from SunFunder:

Model

You are a registered for-profit or non-profit entity that employs a commercial approach to providing high-quality, affordable solar products and services to communities beyond the grid.

 

“Missing middle” finance

You are seeking and capable of managing a $100k-$2M+ loan agreement with $30k-$500k individual disbursements.

 

Geography

You operate in emerging markets including East Africa, West Africa and Asia and Pacific Islands.

 

Technology

You distribute high quality, proven technology and provide after-sales services such as extended warranty or maintenance plan.

Short term

We provide short-term loans ranging 12-36 months.

 

 

Management

We lend to companies with strong management, teams with high reputation and a growing number of satisfied customers.

Scale finance

You have a successful track record to date and have been operational for at least 2 years. You have proven demand from customers and need working capital to meet this demand.

 

Investment-ready

Having all your financials and other information in order, and presenting them to us in a timely manner, facilitates the lending process.

 

Borrowers Include: