criteria and procedure

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Eligibility criteria

Alterfin assesses the eligibility of an application for financing by using the following criteria:

• Years in operation: at least two years
• Ethos: clearly aligned with Alterfin’s key areas of focus: working primarily with smallholder farmers (no more than five hectares of land), clear environmental and/or social objectives, aiming to improve the living conditions of smallholder farmers, commitment to sustainable agriculture through fair trade, organic farming, etc.
• Number of smallholder farmer beneficiaries: at least 150
• Annual sales: at least USD 500,000
• Operational self-sufficiency: > 90% and a positive trend

In addition to these criteria, Alterfin will not finance any company on its exclusion list under any circumstances.

Financing conditions

• Amount: between USD 100,000 and USD 1,500,000
• Currency: USD, EUR, or local currency
• Short-term credit operation, lasting 3 to 18 months, used to finance harvests. Short-term credit operations must be covered by sales contracts that exceed the value of the loan.
• Long-term investment loan of up to five years to finance fixed assets. For an investment loan, the financed property is pledged as a guarantee.
• Interest rate: in line with market rates (including mandatory currency hedging).
• Administration fee: 1% of the loan amount.

financing process

1. Receipt of the application
   You send us the loan application form by email.
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2. ‍Shortlisting
   Based on the information provided in the application form, other data and initial interviews, we decide whether or not your application is admissible.
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3. Due diligence and field visit
   If your application for financing is admissible, an investment manager will make a field visit to assess your business.
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4. ‍Approval by the investment committee
   The investment manager’s report is presented to the investment committee, which makes the final decision about providing financing.
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5. ‍Contract and disbursement
   Following the decision of the investment committee, we begin drawing up contracts and then disburse the financing.
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6. ‍Follow-up
   Throughout the loan’s term, you provide us with regular operational and financial reports, along with reports on your social and environmental performance.

want to apply for financing?

Download the application form, fill it out and send it to the manager of your region:

Africa: africa@alterfin.be
Asia: asia@alterfin.be
Latin America: latam@alterfin.be‍