Enact recently announced its partnership with RapidAdvance to bring efficient working capital solutions to distributed energy contractors on Enact’s Pro platform.What does this partnership mean for contractors and installers?
First, this is a milestone for the industry and an exciting new value proposition of the Enact platform. This is a big, big win for the growing ranks of contractors that make up the vast majority of companies servicing the distributed energy market. Not only will they be able to slash their soft costs and operate more economically using the software and analytics on Enact’s Platform, they will also now be able to have streamlined access to timely capital needed to meet the requirements of their rapidly growing businesses, all seamlessly integrated with their current daily flow of operations. Lastly, Enact’s contractors will have the exclusive benefit of zero up front application fees and will receive special discounts on rates.
What will contractors be able to do with RapidAdvance? RapidAdvance offers flexible working capital solutions, including loans, merchant cash advances and lines of credit. The proceeds of RapidAdvance financing do not have to be applied to a specific project, and can be used for a wide variety of business purposes including but not limited to: smoothing cash flow from lump sum and turnkey contracts, Inventory management (warehouse or assembly space, bulk purchase for discounts), equipment purchase (vehicles, tools, computers), emergency capital to deal with unexpected expenses, and, of course, expansion capital to invest in and ahead of the growth of their businesses.
Will Contractors be able to use RapidAdvance to finance project construction? Yes, RapidAdvance financing may be used in that way, but the financial products offered by RapidAdvance are much more than construction finance.
Will Construction finance also be offered by RapidAdvance through the Enact Platform? RapidAdvance does not provide construction finance. Enact will seek in the future to offer its contractors financial products that are linked to specific projects and take-out financing and that are limited or non-recourse to the contractor.
How is a RapidAdvance financing different from a bank loan? Money is Money. From that point of view, there is no difference. Traditional bank financing is generally burdened with restrictions, lower limits, a slow, cumbersome application, approval, and disbursement process, and is aimed at a small group of impeccable businesses with great collateral and a squeaky-clean record. Whatever amount a business can qualify for from a bank will probably come at a lower interest rate, but that may be small consolation for businesses the bank decides do not measure up.
RapidAdvance is an alternative finance provider; they are not a bank. It is not burdened by the same regulatory capital restrictions that force banks into a deliberately narrow view on credit. RapidAdvance uses advanced technology and works with data to refine its methods and discover new insights into a business’ prospects allowing it to transcend the limits banks set on their own credit analysis. RapidAdvance also uses technology to simplify the process, cut paperwork, and get borrowers their answer FAST – generally less than 72 hours from initial application and faster on renewals. This makes RapidAdvance a superb capital source for distributed energy contractors, and a valued partner to the Enact platform.
What does a finance provider like RapidAdvance gain from the partnership with Enact? Teaming with Enact, RapidAdvance achieves far more than just another channel. With our rapidly expanding contractor network across the US, and a software solution with built-in capabilities to quickly and economically reach, qualify, and transact with customers in the distributed energy business, RapidAdvance can achieve meaningful transaction volumes at low cost.
Thank you for taking the time today to answer our questions and provide valuable insight on the Enact Systems’ partnership with RapidAdvance.