WHY USE PACE?
CleanFund’s long-term, fixed rate financing products, PACEDirect and SolarPACE, offer a unique opportunity to improve the property while not incurring additional debt or utilizing desirable equity, particularly when compared to traditional bank financing.
|How Does CleanFund’s PACEDirect Compare to Traditional Bank Financing?||PACEDirect||Bank Financing|
|Typical Financing Term||Up to 30 years||Usually 5-10 years*|
|Cash Flow Benefit||Immediate||Delayed**|
|Underwriting Process/ Timeframe||Easy / Faster||Difficult / Longer|
|Financing Can Stay with Property Upon Sale?||Yes||No|
|Pass Through Financing Payments to Tenants?||Yes||No|
|Avoid Borrower Guarantees?||Yes||No|
|Avoid Financial Covenants?||Yes||No|
|Avoid Interest Rate Risk?||Yes||No|
|Avoid Quarterly Bank Reporting?||Yes||No|
*Typically 25-30 year amortization
**Depending on term and variability of interest rate, the cash flow benefit may not materialize with bank financing