5 Reasons to Anchor your Rotation with a Mezzanine Loan

The New York Mets are a prime example of finding success through a dominant pitching staff. The team was built from the bottom up, drafting and developing players year after year to carry them to the World Series, similarly, a mezzanine loan can offer your business the same potential for growth and boost the value of your company – all while empowering you to draft and develop your own principles.

Do you need that star ace that dominates the batters he faces?
Mezzanine loans can provide 100% of the funding needed for an acquisition or buyout.

Looking a starting rotation that can find the way to get the job done?
Mezzanine loans are a great place to start. Lenders assess creditworthiness through the stability of the company’s cash flow over time.The loan amount is viewed as a multiple of your company’s EBITDA. The lower the multiple, the better.

Trying to find the bullpen that can throw some innings without giving up a run?
Lenders are concerned with getting back the money they invest. The same way a team looks for a return on the money it invests in its players. For a mezzanine lender, returns are made primarily through interest rates and secondarily through upside on their warrants.

It’s time to rebuild for long-term triumph?
Mezzanine lenders have a long-term focus. Their money should be used to build up the profit of the business over the first two to three years. If the borrower does this successfully, the borrower will be able to repay the loan or refinance the loan easily.

Challenged by a shaky bullpen?
Mezzanine lenders see themselves as patient investors who will work with the management team to get through any challenging times. These loans are long term often with 5 to 7 year maturity dates.

A mezzanine loan is a smart solution that can provide all around growth, expansion and prosperity for your business.