Mezzanine Lending

Mezzanine financing is the hybrid of debt and equity financing. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Generally the debt is subordinated to senior lenders such as banks and venture capital companies.

Mezzanine financing can be a very attractive option. It is usually provided very quickly with little lender due diligence and little or no collateral on the part of the borrower. The downside is that this type of financing can be very expensive. It can be priced as high as a return of 20-30%.

Our commercial lending team, can help you decide if Mezzanine Lending is the right fit for you and help you structure the deal.