Approval for Wunder financing follows a pretty standard process:
Discovery, Create a Solution and Define Terms
After an exploratory conversation, Wunder will perform an initial review of the project information provided in the intake form in order to confirm that the project meets our high-level criteria. We will then prepare a cash flow model to come up with a preliminary loan quote. Project sponsors can usually expect a follow-up on their submission and/or preliminary offer within a couple of days.
It's important to note that there are a number of unvalidated assumptions being made at this phase in the process, one of which is that all of the inputs in the submission are correct and verifiable. For more information on preliminary offers, please consult the following article: Interpreting Your Preliminary Offer.
Once the borrower has determined that Wunder financing could be a good fit for their project, it will move into the diligence phase. During this phase, we will collect information about the project and all of the organizations involved. The exact list of documents needed can vary from project to project, but on a typical project, you can expect it to look something like that provided in the Documentation Needs article.
The diligence phase starts with the Letter of Intent (LOI) process. During this step, Wunder will request the most critical project documents - those establishing power offtake, site control, and project sponsor qualifications - and review them to ensure the project will be able to meet our expectations. Once these have been reviewed, our team will update our cash flow model and share an LOI that includes more detailed project-level and financial information for signature.
The amount of time that a project spends in this phase is highly dependent on the stage of the project and the state of the partner's existing data room. Sometimes, collection of certain documents can be delayed until after contracting. These are called Conditions Precedent and borrowers will be contractually obligated to provide them before Wunder will disburse capital out of their loan.
Final Review and Approval
When all of the required diligence documents have been provided, Wunder will perform a thorough review of all documentation and project details. It is not uncommon for additional questions to come up during this phase. Once all risk areas of a project have been assessed, the financing opportunity is presented to Wunder's credit committee for a final decision on whether the project is approved for financing.
Upon approval by the credit committee, Wunder will provide the borrower with an e-signable loan contract package that lays out the details of the final loan offer. If there are any questions about the contract language, Wunder is happy to schedule a call to review language and debt servicing procedures. However, please do not expect requested revisions to be accommodated, Wunder's contract set is standard encoded in our technology - therefore, making custom changes is difficult and very rare. If timing is tight, a contract template can be provided for review before the project reaches this stage.