Get Mezzanine Financing is all about helping business leaders obtain mezzanine financing for their companies.
Mezzanine financing is a type of capital that has some of the characteristics of bank loans and some of owners share capital.
Typically it is structured as a loan, though in such a way that it doesnt make primary lenders (that is banks) uncomfortable. This is achieved through often very low cost of servicing that loan during the early years of the financing. Specifically, this means little or no principal repayments, as well as interest payments.
During that period the company taking on mezzanine capital is expected to grow or, at least, improve its cash flow generating ability and also equity value.
The mezzanine financing firms expect to eventually earn from the interest that is paid later on and, often, participate in some way in the shareholder benefits resulting from the increase in the company value.
GetMezzanineFinancing.com not only clarifies the whole concept of this specialized form of financing, but it also helps companies looking for mezzanine capital to find the right partners that can provide such funds.
Mezzanine financing is especially attractive for middle-market companies, which have limited access to both public debt markets and bank financing. Besides, this form of financing results in very little dilution to the existing shareholders.
Furthermore, mezzanine capital is also widely utilized in private equity sponsored transactions to allow for higher levels of debt.