Solar & Home Improvement
Maximize loan performance
Solar and home improvement financing is a complex product with unique challenges.
In the case of solar loans, a 20-year investment is sold to homeowners in their driveway and finalized around the kitchen table, sometimes hastily. And that can create significant financial risk for originators.
Three ways to mitigate risk and improve results
1. Implement proactive and consistent communication
Borrowers must clearly understand what’s expected of them from the start. Lenders should establish regular communication immediately after loan origination to ensure a borrower understands their obligations, repayment options, and the consequences of delinquency or default. A lapse in communications increases the risk that borrowers will fail to remember or be unprepared for repayment.
2. Monitor portfolio performance
A lender should have flexible loan servicing technology that manages the day-to-day administration of a growing loan portfolio and also provides detailed performance reporting. Analyzing loan data across different portfolio metrics will help identify and address areas of improvement, either at the operational or loan program level.
3. Establish default aversion and collection strategies
The numbers show that some homeowners will walk out on their solar loans even in a strong economy. Those loans simply are not at the same level as mortgages, which borrowers will always pay first. Add to that the cumbersome process of uninstalling solar panels and it’s clear why solar companies and originators must have solid default aversion strategies and collections management processes.
Client Success Story
Increasing Business Growth Through Outsourced Servicing
Situation: A residential solar and home improvement loan originator was exploring alternative solutions for their loan servicing in order to focus on growing the business.
Learn more about how Goal Solutions helped them make the transition and increase loan volume.
How Goal Solutions can help you
We’re more than just another vendor—we’ll be your partner for the long-term.
Our complete asset management solution, from borrower outreach and expert servicing to default aversion and collections, will help improve your returns without straining your internal resources. With decades of experience in consumer loans, we’re equipped with the caliber of technology and expertise it takes to help you maximize your solar loan performance.