Frequently Asked Questions
Information Requirements
Commercial
Tenant
- Director’s Drivers Licence
- Director’s Asset and Liability Statement
- Invoice for project
- Last two years financials
- Year to date financials
- Project supporting information (e.g. project/solar design, project proposal, energy bill)
- Months remaining on property lease
Business
Owner
- Director’s Drivers Licence
- Director’s Asset and Liability Statement
- Invoice for project
- Last two years financials
- Year to date financials
- Project supporting information (e.g. project/solar design, project proposal, energy bill)
Commercial
Property Owner
- Director’s Drivers Licence
- Director’s Asset and Liability Statement
- Invoice for project
- Last two years financials
- Project supporting information (e.g. project/solar design, project proposal, energy bill)
Body
Corporate
- Invoice for project
- Last two years financials
- Number of Lots
- Current Levies
- Levies Arrears Ledger
- Project supporting information (e.g. project/solar design, project proposal, energy bill)
- Must be professionally managed
General
What do you fund?
We fund renewable energy assets, EV charging infrastructure and sustainability building upgrades including the following.
Do you fund residential homes or individuals?
At this stage, we are focussing on assisting commercial tenants, businesses, commercial property owners and body corporates.
What finance options are available?
A variety of finance options are available including chattel mortgages, operating leases or introduction to potential capital providers. On occasion, funding can come from a Power purchase agreement (PPA) enabling access to renewable energy without upfront costs, paying for the energy consumed at an agreed-upon rate.
How much can I borrow?
Our funding is tailored to your unique circumstances, our assessment includes your current financial position, the proposed sustainability investment and its projected net benefit. If you’re not ready to apply but would like to know what is possible complete an enquiry form to commence the assessment process.
How long does an approval take?
The time taken for finance approval can vary depending on several factors, including the complexity of the application and the completeness of the documentation provided. In some cases, finance approval can be obtained within a few days if the application is straightforward and all required documents are readily available. However, for more complex applications or situations requiring additional verification, the approval process may take several weeks. It’s essential to communicate with us and provide all necessary information promptly to expedite the approval process.
Is funding available for both large- and small-scale projects?
Yes, funding is available for both large- and small-scale projects. Depending on the project’s scope, funding sources may include private financing from banks, our funding partners or investors or government grants and incentives.
Can asset finance be used for individual units or only common property upgrades?
The funding can only be used for common property upgrades (for example building HVAC, lighting, EV chargers) as the borrower is the Body Corporate entity not the individual unit owners.
What’s a Chattel Mortgage?
A chattel mortgage is a type of finance arrangement where a business borrows money to purchase movable assets, such as vehicles or equipment, using the asset itself as security for the loan. The borrower takes ownership of the asset upon purchase and repays the loan through regular instalments over an agreed-upon term. While the lender holds a mortgage over the asset as security, the borrower retains full use and ownership rights.
At the end of the loan term, once all repayments are made, the mortgage is removed, and the borrower gains clear title to the asset. Chattel mortgages offer flexibility in terms of loan amount, repayment schedule, and interest rates, making them a popular choice for financing equipment and machinery in business contexts.
Is the interest rate fixed or variable?
Interest rates are fixed for the loan term, providing borrowers with predictability and stability in their loan repayments. This means that regardless of fluctuations in the broader interest rate market, the borrower’s interest rate remains unchanged, offering protection against potential rate increases.
Who do you fund?
We fund including but not limited to commercial tenants, business owners, commercial property owners and body corporates. If you operate a commercial enterprise but don’t fit into one of these descriptions, please reach out and we will see if we can accommodate you.
What are the eligibility criteria for funding?
Given the diverse applicants we assist, there is no set criteria for funding across the board. Various factors are taken into consideration ensuring alignment with sustainability objectives and financial viability. Typically, applicants must demonstrate financial creditworthiness and demonstrate positive environmental impacts.
What’s the interest rate?
Interest rates vary widely depending on loan size, loan type and the funder we use. If you would like to know what interest rate you’ll be receiving, you’ll have to contact us.
Do you offer ‘low doc’ lending?
We only provide ‘easy doc’ and ‘full doc’ funding solutions as the vast majority of the projects we fund are over AUD $100,000.
Can I enquire about funding prior to having a quote or invoice for the proposed project?
Yes, while having a quote or invoice will streamline the funding process, it’s not a prerequisite to commencing discussions with Green Funding to understand what is possible. In some circumstances, we can offer pre-approval so you can proceed with confidence in obtaining detailed project plans, financial projections and cost estimates before you engage Green Funding with a formal funding application.
As a tenant, does it matter how long is left on my property lease?
Yes, we’ll need proof that the length that the property tenancy is longer than the finance term.
What repayment periods are available?
It depends on the type of funding sought; it can extend up to 15 years but the vast majority are 7 years or less.
What’s an operating lease?
An operating lease is a type of lease agreement where a business rents an asset, such as equipment or machinery, for a specified period without taking ownership of the asset. The lessee does not assume the risks and rewards of ownership, and the lease term is typically shorter than the asset’s useful life. Operating leases are commonly used for acquiring assets needed for short-term or temporary projects, providing flexibility and avoiding long-term commitments.
At the end of the lease term, the lessee may have the option to purchase the asset at a nominal or fair market value. Operating leases offer advantages such as lower upfront costs, simplified accounting treatment, and the ability to access the latest equipment without the burden of ownership.
Why doesn’t the operating lease agreement state the buyout?
If a buyout is specified in the contract then the agreement would no longer be considered an operating lease, it would be considered a Commercial Hire Purchase (another finance agreement). This means different treatment for tax entirely. However, it is common practice for the assets to be purchased at an agreed upon amount.
Have a question that hasn’t been answered?
Please get in touch