What is “Mezzanine Financing”?
This is a combination of both equity and debt financing which is most commonly used to finance expansion opportunities for existing companies.
Through mezzanine financing, the lender is given the privilege of converting to an equity interest or ownership in the company in cases where the debt capital loan is not repaid in full or on time.
This type of financing is typically subordinated to the debt provided by the senior lenders, such as venture capital institutions or commercial banks.
Mezzanine financing of $250,000 to $10 Million can be easily acquired through Capital Direct Funding, in a very timely manner, and with very little due diligence performed by the lender. In most cases, very little collateral is required, if any.
Due to these factors, mezzanine financing is often priced more aggressively by the lender, whose long-term goal is generally to receive a 20% to 30% return on investment.
Our job is to put together an attractive loan package that appeals to both the borrower and the lender and to make sure the whole process moves along quickly and smoothly.
As a private lender, we have greater flexibility when it comes to commercial loans, including mezzanine loans. We treat every deal as unique and take your specific needs into consideration throughout the whole process.