What are the financing options for a small startup – Standard Offer vs. RFP?
Currently in 2004-5 programs in CA, there’s no up-front money. (This is different from the first round, 2002-3 programs when implementers got 20-30% up front.) The payment schedule in CA is now basically the same as in Texas. Currently in CA, you do some work, then submit invoice in month 1, they review it in month 2, they pay month 3 – so you’re always 3 months behind. In TX you do the work, submit it, get paid w/in 1-3 months depending on measurement procedure. The way most ESCOs operate is to get a line of credit on receivables There are funds available for that in financing companies.
