Accessing Loan Options
Go to the Pricing and Financing tab.
There are two key sections:
Pricing: Where you input pricing information.
Financing: Where you can choose from three financing options:
Loan
Power Purchase Agreement
Lease
Today, we'll focus on the Loan financing option.
Creating Loans in ARKA 360
You can create custom loans by clicking Manage Financials.
Alternatively, go to Org Settings and then click Manage Financials.
There are four types of loans you can create:
1. Bullet Loan
In a bullet loan, there are no monthly payments until the final period of the loan, where both the principal and interest are paid together.
To set up:
Specify the principal, interest rate, loan duration, and dealer fees.
Example: If the loan duration is 10 years, no payments are made for the first 10 years, and the full amount (principal + interest) is paid in the 10th year.
2. Mortgage Style Loan
This is the most common loan type.
You need to specify:
Principal percentage (how much of the system cost you want to finance).
Interest rate, loan duration, and dealer fees.
You can also include prepayment options to reduce monthly payments.
Example: If you want to pay back 30% in the 18th month, specify this, and the monthly payment will adjust accordingly.
3. Interest Only Loan
The loan is divided into two terms:
First term: Borrower makes only interest payments.
Second term: Converts to a mortgage style loan.
For both terms, specify the interest rate and duration, and any prepayments.
4. No Payment Loan
Similar to an interest-only loan, but no payments are made during the first term.
The interest accumulates and becomes the principal for the mortgage style loan in the second term.
Specify the interest rate and duration for the second term.
Loan Calculation Example
Let’s go to the Design tab and see how monthly payments are calculated.
For a mortgage style loan, let’s assume:
Total system price: $33,682
Loan term: 5 years
Interest rate: 4.99%
Dealer fee: 30%
Prepayment: 30% in the 18th month
Based on these values:
The monthly payment for the first 18 months will be $654.
After the 18th month, the payment drops to $383.
Conclusion
You can experiment with different loan types to see how the monthly payments vary.
That's how you add and manage loan financing options in ARKA 360.
Thanks for watching!