Mezzanine Finance serves the capital needs of companies that are scaling-up. The scale-up usually takes the form of an acquisition or expansion. During the scale-up phase, companies require large amounts of capital, beyond what they can get from a bank loan. Through funding into the future cash flow, mezzanine finance provides strategic capital for these companies, enabling them to grow larger and faster.
Mezzanine loans are based upon your cash flow or EBITDA. The loan amount is structured on a fixed multiple of EBITDA. Loan repayment is back ended is usually covered by the cash flow increase from scale-up execution. Mezzanine lenders use unique tools to assess and make loans. They usually develop a view as to the enterprise valuation of the company first. They then analyze the historical adjusted EBITDA to lock in the level of available cash flow for loan servicing. Through in-depth company and industry analysis, they are able make loans that banks are unwilling to.
Mezzanine Finance is the perfect solution for the following types of scale-up situations:
- Regional expansions.
- Product & Distribution investment.
- Capacity expansion.
- Partner buy-outs.
Usual terms are 10% interest, 5 year interest only terms and no personal guarantee. These loans are customized to your specific cash flow and provide a high level of capital flexibility. Mezzanine Finance is the perfect solution for fast growing companies in need a long term, patient capital solution. Attract Capital has been in the mezzanine finance industry for 28 years and has a tremendous amount of expertise and contacts in the market. Contact us today to fill all of your mezzanine finance needs.
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