Prequalification (prequal)
Solar finance glossary · South Africa
Quick definition
Prequalification (prequal) is an early, rules-based screening of a prospective solar finance applicant against the typical criteria funders apply, such as years trading, annual turnover, entity type, deal size and the ratio of the proposed repayment to the projected energy saving, before a full application is prepared.
The purpose is to avoid wasted effort on both sides. A deal that will not meet any funder's minimum criteria is flagged early and the installer can adjust the system, the term or the structure; a deal that clears the screen can proceed straight to document collection and the financial proposal.
Prequalification is not a credit decision and does not involve a credit bureau enquiry unless the applicant consents to one. It works from information the applicant provides and from published or configured funder criteria. In South African commercial solar, common prequal inputs include a minimum trading history, a positive net asset position and the business being registered and tax compliant.
ArkFlow is a software platform that facilitates prequalification through a configurable rule set, with the outcome shown to the applicant and the installer immediately.
Read more
What South African Banks Look For When Funding a Solar Deal →Solar finance banks south africa: learn what FNB, Absa, Nedbank and others assess before funding a solar deal, and how to package an application that gets approved.
ArkFlow is a software platform that facilitates solar finance origination. It is not a bank, lender, credit provider, tax adviser or financial adviser. This definition is general information, not a credit offer or advice. Funders make their own credit decisions and tax treatment should be confirmed with a registered practitioner.