It is no secret, over the last 5-7 years we have seen an explosion in technology disrupting traditional lending. First it was across personal lending (Avant, Kabbage, Lending Club.,etc), then small business lending (OnDeck) and now other verticals like commercial real estate loans.
The commercial real estate lending sector is major and so we wanted to find an industry leader.
We recently interviewed with Scott Harmon of Noesis to find out more about the Noesis platform, what it does and who they can help.
Noesis is a specialty online lending marketplace that helps commercial building owners increase the value of their buildings.
The commercial real estate loan services Noesis offers are some of the first of their kind outside of major banks such as Wells Fargo and Bank of America. Promotional financing is a powerful tool that will help turn browsers into buyers and the program will help accelerate sales and provide a competitive industry advantage.
Noesis' aim is to help commercial building owners by assisting them in making well-informed investment decisions in energy-related equipment, such as LED lights, and providing financing with commercial real estate loans to upgrade their buildings, generate additional cash flow and increase their property values. Noesis meets the needs of the owners of the 5-to-7 million non-residential buildings in the U.S. through in-house project financing expertise, proprietary project valuation technology and a range of innovative financing vehicles.
Unlike traditional banks and asset-backed equipment finance lenders which focus on the credit score of a business or the value of an asset, the Noesis platform combines business credit history with business financials, building value and energy savings into a single, combined
Wealth of Energy Efficiency Investment Opportunities
Every year (in United States alone) commercial and industrial organizations spend over $350 billion on energy efficiency in buildings, and it's estimated that over $70 billion is wasted due to inefficient buildings, outdated lighting, poorly performing HVAC systems and more. When assessed globally, the total energy and money wasted is far higher. And, despite the thousands of professionals - from internal energy managers to 3rd party design-build firms - proposing tens of billions of dollars of energy efficiency (EE) investment opportunities, less than 25% of the projects get approved. As a result, much of the savings go unrealized and energy, wasted. This is where Noesis and timely commercial real estate loans make a difference.
What Differentiates Noesis' Commercial Real Estate Loans?
Noesis' program offers attractive commercial real estate loan terms to overcome these budget constraints and help significantly increase project approval rates. Noesis' participating partners can now offer their customers flexible financing terms such as 'same as cash' financing (including zero interest and no interest, no payment options) and reduced interest rate financing on vendor equipment.
"As we continue to grow our lending marketplace, we recognized there was a need to offer promotional financing for our partners, similar to what fin-tech companies have offered in other commercial and consumer sectors....
Our promotional financing is directly applicable to the $18 billion in energy-saving equipment sold annually to commercial building owners, but there is a much bigger opportunity to offer attractive, point-of-sale financing to overcome budgeting and other purchase constraints across all industrial equipment sales, from refrigeration to elevators."
- Scott Harmon, founder and chief executive officer of Noesis.
Interesting Facts About Energy Efficiency
- 95% of all commercial/industrial buildings across the U.S. Are 15 years or older (and a majority of them are in desperate need of upgrades).
- By 2023, businesses will spend an estimated $127 billion to improve the world’s 30 million+ commercial buildings, creating a major opportunity for providers of commercial real estate loans ― which is already shaping up now.
- The state of commercial real estate loans in the United States is strong and growing rapidly.
- Deutsche Bank and The Rockefeller Foundation estimate the commercial real estate loans industry to be a $279 billion market for energy efficiency investment.
Do More Projects with Noesis
According a recent Noesis survey, nearly 70% of projects get rejected because of lack of budget or a lack of trust in the forecasted savings. To help energy efficiency professionals get more projects approved, Noesis offers innovative commercial real estate loans and energy efficiency project financing combined with unique technology that lets them identify, evaluate, propose, finance and close more energy efficiency projects.
Whether you are an energy manager trying to get a single lighting upgrade approved or a multi-national company proposing thousands of energy efficiency projects a year, Noesis serves your commercial real estate loans needs with efficiency.
They Help You Prove The Energy Savings
Every project financed through Noesis includes Performance Reporting, which is an analysis done after project completion at the end of the first year one to evaluate how the savings compare with what was forecast.
As an option, they offer formal, standards-based measurement and verification (M&V) of any project financed through Noesis.
Why measure the savings? It’s simple: building owners are more likely to trust the forecasts of equipment vendors who will be there to measure and report on the actual savings.