MODsolar has added three easy-to-use loan calculations to the MODsolar Platform. Each of these can be easily added to your account (by your Administrator) with just a couple of clicks, and then they’ll be available at the Determine Cost / Financing stage of proposal generation. The new loan types were created based on requests that we received from clients, and they include:
- A “standard” loan – simple loan amortization over the loan’s lifetime. A down payment and an end-of-term balloon payment can also be included. (This type of loan has always been available, but the process to set it up has been somewhat cumbersome. As you’ll see below, it’s now MUCH easier.)
- “Delayed start” – a simple loan, but with no payments for an initial (configurable) period — for example, no payments for the first 18 months. Effectively, the loan payments are simply shifted into the future.
- “Interest-only start” – a simple loan amortized over the loan’s lifetime, but with interest-only payments for an initial (configurable) period — for example, interest-only for the first 12 months.
Enabling the New Loan Types
To make the loan types available, all your Administrator has to do is go to the “Settings” area for your account and click “Financing” in the menu on the left. The three new loan types will appear, each with an “Add this Loan” button. Below is a screenshot:
The new pre-configured loan types
To see more information, hover over one of the “Read more about this program” links; for example:
Viewing loan details
To add one of the loans, click the “Add this Loan” button. An additional prompt will appear, which you must acknowledge to proceed, as illustrated below:
Adding a loan
(Please keep in mind that MODsolar does NOT provide actual financing. You are responsible for obtaining financing through a 3rd-party lender, and for obtaining the proper approval from the lender to quote the financing for your projects.)
Using the New Loan Types in Your Proposals
Once your Administrator has enabled one or more of the new loan types, they will be available at the Determine Cost / Financing stage of proposal generation. Each loan type will appear in its respective section on the right side; you’ll be able to select each and configure the options independently. The loan payments are automatically calculated. For example:
Using the new loan types
(Note that in the example above, the user has specified a 120-month (10-year) loan at 5%, but with interest-only payments for the first 12 months. The MODsolar Platform instantly calculated the regular monthly loan payment of $370.05 as well as the initial interest-only monthly payment of $133.88.)
How the New Loan Types Are Handled in the Proposals
Several of the modular proposal components have been enhanced to reflect the special “Delayed start” and “Interest-only start” loan types. For example, the standard cost breakdown table for loans will show the standard payment as well as the initial period payment, as in the case below:
Special loan type in the proposal (Cost Breakdown component)
Notice that the two calculated monthly payments are displayed, as well as the payment periods (12 months interest-only, followed by 108 months principal + interest, for a total of 120 months, as configured).
Notably, the Cash Flow Table component has also been enhanced to clearly illustrate the direct effect of the new loan types, as shown below:
Special loan type in the proposal (Cost Flow component)
Notice how the sum of the loan payments for the first year are less than subsequent years because the first year’s payments are interest-only.
Below are examples of how a delayed-start loan would be calculated and displayed.
120-month loan at 5% (after an 18-month delay)
Cost Breakdown component for a delayed-start loan
Cash Flow component for a delayed-start loan
Other Custom Financing Calculations
Are you working with financing programs that require other customized calculations? Let us know; we may be able to add them so that you can accurately model the payments within the MODsolar Platform.