MODsolar has added 3 easy-to-use loan calculations to the MODsolar Platform. Each of these can be easily added to your account (by your own 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
In order to make the loan types available, your Administrator simply needs to do to the "Settings" area for your account and click "Financing" in the menu on the left. The 3 new loan types will appear, each with an "Add this Loan" button. Below is a screen shot:
To see more information, hover over one of the "Read more about this program" links; for example:
To add one of the loans, click the "Add this Loan" button. An additional prompt will appear, which you must acknowledge in order to proceed, as illustrated below:
(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 own section on the right side; you'll be able to select each independently, and configure the options. The loan payments will be automatically calculated. For example:
(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 example below:
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:
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.
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.