FREQUENTLY ASKED QUESTIONS

Below are some common questions about our Alternative Lending Solutions.  If you have a question that isn’t addressed, please feel free to call or fill out the contact form.

What is Alternative Lending?

Alternative Lending is a term used to describe a wide range of loan options available to borrowers and business owners outside of a traditional bank loan. These alternative financing options are typically used when an individual or business owner cannot get a traditional bank loan for a variety of reasons.

How do I qualify?

Alternative loan solutions are customized to address our client’s specific circumstances. Qualification is by consultation and a ‘soft’ underwrite of the credit request. Please contact us to discuss your needs.

What is the current interest rate?

Indicative interest rates are typically quoted following a consultation and soft underwrite of the credit request and are subject to change up to the point of a formal loan commitment and rate lock with the lender.

REQUEST A CONSULTATION

For more information on how Kritscher & Associates can assist you with a debt restructure, bridge loan or special financing, please fill out the contact form or, call us at (530) 405-6036.

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Alternative Lending, Bridge Financing, Fixed Rates

ALTERNATIVE LENDING SOLUTIONS

Alternative business loan options are expanding for small business owners. Alternative lending is a collective term used to describe the broad range of loan & finance options available to clients outside of traditional banks and financial institutions.

Through our relationship with Conterra Asset Management, Kritscher & Associates has access to a unique platform managed by seasoned lenders who understand the capital needs of farmers and agribusiness. We seek opportunities to finance borrowers in need of an alternative source of debt when traditional lenders are not an option and patient capital is required.

We also offer a platform for assisting banks and institutional lenders with the sale of illiquid or underperforming agricultural loans and/or portfolios of loans.

 

STRESSED LOANS

  • Asset purchases
  • Discounted payoff financing
  • Maturity default financing
  • Bridge financing
  • Rescue financing
  • Secured loans(term/revolver)

SPECIAL SITUATIONS

  • Distressed credit secured by real estate
  • Hard to finance assets such as greenhouse, warehouse, processing facilities, heavy equipment

NICHE LOAN & PORTFOLIO FINANCE

  • Whole loans
  • Single-name and portfolio loan purchases
  • Restructured debt and equity blocks
  • Majority/minority participations in club/syndicated facilities

ALTERNATIVE LENDING EXAMPLES

Conterra Asset Management

The following examples are real world transactions showing key financial measure before and after restructure. Examples Courtesy of Conterra Asset Management.

Washington State Broiler Operation - At Submission

Washington State Broiler Operation

  • Current Ratio:                 2.54%
  • Debt to Asset Ratio:          36%
  • 3-yr Avg. TDC:              0.95%
  • FICO:                             721

  • Situation: Mortgage reached maturity at year-end 2015 and existing lender provided extension in order to allow borrower to refinance.  Applicant had difficulty finding traditional financing due to historically tight repayment capacity.

Washington State Broiler Operation - After Restructure

Washington State Broiler Operation

  • Loan Amount:           $800,000
  • Loan to Value:                 53%
  • Current Ratio:               2.95%
  • Debt to Asset Ratio:          37%
  • TDC Ratio:                   1.15%
  • FICO:                             721
  • Terms: 7.25%, 3 year balloon, 25 year AM