Dividend Finance

Established in 2013 in San Francisco, Dividend Finance operates as a financial technology platform specializing in point-of-sale financing for residential renewable energy and sustainable home improvements. The company was founded by Eric White, whose background in energy and power investment banking at Merrill Lynch and experience at American Infrastructure Funds informed the firm's direction. White led the company from its inception through a significant milestone in May 2022, when Dividend Finance was acquired by Fifth Third Bancorp, subsequently becoming a division of Fifth Third Bank.

The firm's business model is centered on a partnership approach, collaborating with a national network of home improvement and solar contractors to offer financing solutions directly to homeowners at the point of sale. This model enables contractors to integrate financing seamlessly into their sales process, while property owners gain access to funding for projects like solar panel installations, roofing, windows, and HVAC systems. Revenue is primarily generated through interest income on the loans it facilitates, as well as potential fees from its contractor partnerships and income from investments. All loans are now originated by Fifth Third Bank, which provides a stable balance sheet and a lower cost of funds.

Dividend Finance provides a digital platform that streamlines the loan application and approval process for both contractors and their customers. The platform is designed for ease of use, allowing for quick credit decisions and electronic loan agreements. The company offers a variety of loan products, including its EmpowerLoan for solar projects, which can also cover battery storage systems. These loans, which can go up to $120,000, feature fixed rates and no prepayment penalties, with terms typically offered for 12 or 20 years. The firm's target clients are homeowners with prime and super-prime credit scores.

Keywords: point-of-sale financing, home improvement loans, solar financing, fintech lender, contractor financing, renewable energy finance, residential lending, digital lending platform, sustainable finance, energy efficiency