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=== '''<span style="color:#879637;">Module Aim and Orientation</span>''' ===
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Financing solar-powered irrigation can be an opportunity for financing institutions seeking to diversify their loan portfolio and expand their range of financial products. The '''FINANCE''' module focuses on product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower. The module also points out how it is different from financing conventional irrigation systems. It provides guidance to financial service providers already financing or planning to finance SPIS. It thus addresses two groups:

*stakeholders at management level who decide upon credit policies of a financial service provider.<br/>
*loan officers who assess single loan applications for financing SPIS.

The '''FINANC'''E module, being part of a comprehensive manual, relates to the other modules in several ways. '''[[SPIS - Get Informed|GET INFORMED]]''', the first module of the manual gives basic information on SPIS and its components. Methods for its promotion are described in the '''[[SPIS - Promote + Initiate|PROMOTE & INITIATE]]''' module, including one process step on access to finance as an important precondition for promoting SPIS in a particular region. Natural limitations of the environment and a sustainable use of water and other resources are crucial when considering risks. These factors are described in the '''[[SPIS Safeguard Water|SAFEGUARD WATER]]''' module. The '''[[SPIS Design|DESIGN]]''' module provides information, tools and examples on how to estimate the dimensions of a SPIS for a specific farming situation. It also includes guidance on the calculation of the financial viability of SPIS which is critical to assess the loan (financing volume and profitability). The '''[[SPIS Design|DESIGN]]''' module aims at establishing the financial viability of a particular design, whereas the module '''FINANCE''' focuses on HOW to finance the&nbsp;respective SPIS design. The modules '''[[SPIS Set Up|SET UP]]''' and '''[[SPIS Maintain|MAINTAIN]]''' describe aspects to be considered when installing and maintaining SPIS. Checklists and other tools in these two chapters are of specific value to banks when paying visits to clients with a running SPIS.<br/>
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=== '''<span style="color:#879637;">Process Steps</span>'''<span style="color:#879637;"></span> ===
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Three steps are elaborated in the '''FINANCE''' module to support the process of defining the financial service provider’s credit policy on '''management level''': First the analysis of the potential of the SPIS market segment; secondly the determination of general credit risks involved; and thirdly, the design and test of suitable financial instruments.

For the specific individual loan assessment process on '''loan operations level''', three main steps are elaborated: First, the determination of the financing volume and calculation of the profitability of the investment; secondly, the assessment of credit risk and collateral of the potential borrower; and finally, the determination of the cash flow and the repayment plan for the single potential client, along with loan conditions.
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=== '''<span style="color:#879637;">Chapters</span>'''<br/> ===

#[[SPIS Toolbox - Credit Policy: Analyze Potential|Credit policy: analyze potential]]
#[[SPIS Toolbox - Credit Policy: Risk Analysis|Credit policy: risk analysis]]
#[[SPIS Toolbox - Credit Policy: Select/develop Suitable Financial Instruments|Credit policy: select/develop Suitable Financial Instruments]]
#[[SPIS Toolbox - Loan Assessment: Determine Financing Volume and Profitability|Loan assessment: determine financing volume and profitability]]
#[[SPIS Toolbox - Loan Assessment: Assess Credit Risk and Collateral|Loan assessment: assess credit risk and collateral]]
#[[SPIS Toolbox - Loan assessment: Adjust Repayment Plan to Cash Flow|Loan assessment: adjust repayment plan to cash flow]]

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*[[SPIS - Toolbox - Finance - Further Reading, Links and Tools|Further Readings, links and tools]]
*[[SPIS Toolbox - Finance - Glossary|Glossary]]
*[[SPIS Toolbox - Finance - Annex|Annex]]
*[[SPIS Toolbox - Abbreviations|SPIS Toolbox - Abbreviations]]

[[Category:SPIS_Toolbox]]