LiveZilla Live Chat Software

Importance of Mezzanine Capital In Funding A Business

Looking for some extra money to fund a merger or acquisition? In need of some refinancing of some previous loans? Or are you simply just looking for some extra dollars to keep your company secure and make room for future growth? Mezzanine capital is a great solution that is both safe and effective.

Banks and private equity investors do not provide the necessary capital to every company or deal in need of financing. Mezzanine capital fills this funding gap. A mezzanine lender evaluates the company’s cash flow, potential growth and profitability. Companies that have stable financial performance, a strong plan for the future, and revenue greater than $20 million are prime targets for mezzanine capital.

Mezzanine lenders understand businesses are built on growth, innovation, and expansion. Therefore, mezzanine capital operate on a long-term basis. They are patient providers of financing, willing to wait for 5 years to collect the principal back. This long time period means a business can use mezzanine capital in funding the expansion of the business and generate increased cash flow. An increase in cash flow allows companies to further scale the company, resulting in a stronger and more valuable company. Mezzanine capital will unleash a continued cycle of development and fruition for the company.They take risk with their loan because it is unsecured by collateral.

A clear advantage of mezzanine capital is the flexibility it offers to both the borrower. It is beneficial for companies that cannot raise more senior debt. It is reasonably priced and is without excessive restrictions. In terms of spending the loan proceeds, it is up to your best business judgment as to how the financing should be applied. Mezzanine capital providers gauge the companies they lend to based on a subjective and objective analysis. When you put it together, it affords you the money, flexibility, and high quality people to help take your business to the next level.

What We Offer
  • Corporate Finance Expertise
  • Vast Practical Experience
  • Legendary Customer Service
Latest M&A Industry Updates!
  • Current trends in Lower Middle M&A Market and Middle-market Mezzanine!
Get a Free Consultation!
  • Mezzanine Funding Solutions
  • Advisory Services
  • End-to-end Acquisition Services
Get a Free Consultation

* Fields marked with an asterisk are mandatory

captcha

From Our Blog

Special Recent Posts

Business & Industry Loans – Your Ticket to the Growth Highway

Business & Industry Loans – Your Ticket to the Growth Highway

June 22nd, 2017

The United States Department of Agricult... read more

Merger Ahead? The Importance of Acquisition Financing

Merger Ahead? The Importance of Acquisition Financing

June 20th, 2017

The best laid plans result in successful... read more

When Is It Time To Sell Your Business?

When Is It Time To Sell Your Business?

June 8th, 2017

Every business owner encounters the day ... read more

© 2017 AttractCapital, LLC All Rights Reserved.