Extensia Financial Provides Low-Interest Loans for Renewable Energy
In coordination with our parent company AVANA Companies and sister company AVANA Capital, Extensia Financial contributes to clean energy initiatives by providing low-interest loans to renewable energy businesses. Our three companies’ deep understanding of the industry and market needs, as well as experience in solar energy and waste energy projects, enable us to develop an array of tailored renewable energy business loans.
Extensia Financial offers distressed debt acquisition and pre-development, project development, equipment, construction and mini-perm renewable energy business loans to borrowers contributing to the expansion of clean energy across the United States.
What are Renewable Energy Loans?
Renewable energy loans (AKA clean energy loans) provide funding for energy efficiency and renewable energy projects or businesses. The projects or businesses must pertain to at least one of the major types of renewable energy:
- Biomass: When companies convert organic matter into heat or methane gas to create fuel, they use biomass energy.
- Hydropower: The power of moving water can be turned into electricity with the use of turbines. Hydroelectric energy is achieved through dams, artificial waterfalls or directional channels.
- Geothermal: Geothermal energy businesses or projects focus on turning the heat beneath Earth’s crust into electricity through a turbine.
- Wind: Wind is typically converted into energy through wind farms.
- Solar: The sun’s rays are converted into electricity through solar panels, which have the ability to power homes and businesses.
Why are so many businesses interested in energy efficiency projects and obtaining a renewable energy loan? Once completed, renewable energy projects may result in energy savings and/or qualify for tax credits, rebates or grants. For instance, Inc. reported EnergySage marketplace data found the average commercial property owner who installed solar panels reduced their electricity bill by 75%.
How to Obtain Funding for Energy Projects
To obtain funding for energy projects, borrowers must take these six steps:
Step 1: Determine the loan amount you need for the renewable energy project or business.
Step 2: Decide on the type of renewable energy business loan you need. Options include, but are not limited to:
- Pre-Development Loans cover pre-development costs, such as financial application fees, legal fees, architectural and engineering fees, and more.
- Project Development Loans are short-term options that fund the purchase and build costs of commercial projects.
- Equipment Loans finance the cost of new equipment or vehicles.
- Construction Loans cover the costs of building a commercial property or building.
- Mini-Perm Loans are short-term financing products that act as bridge loans between construction loans and permanent mortgages.
Step 3: Read through your preferred loan types’ eligibility requirements to ensure you meet the criteria.
Step 4: Obtain necessary financial documents such as financial statements, business checking and savings accounts, tax returns, lines of credit and more.
Step 5: Search for renewable energy business loan lenders. Compare available financing options, loan terms, estimated monthly payments and interest rates.
Step 6: Complete the loan application at your preferred lender. Your assigned loan officer will review your financial wellness to determine if you qualify for the loan. Ensure you have sufficient collateral and a great credit score to obtain approval.
Renewable Energy Financing Sources
Extensia Financial is one of the few renewable energy financing sources available in the United States. Extensia Financial works closely with credit unions and its parent company to provide specialized renewable energy business loans to companies interested in helping the environment, all while reducing energy costs.
About Extensia Financial
Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial offers competitive and collaborative commercial loans. We partner with credit unions and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire full lifecycle of renewable energy loans. Extensia Financial is a proud member of the AVANA Family of Companies.