Rise Above “Middling” Mid-Market Success with Mezzanine
Posted on: September 12th, 2016
If you think you can use mezzanine financing to climb the ladder of success, then you are thinking right! Mezzanine debt is a good way for a company to grow and expand until it becomes a middle-market force to be reckoned with.
Here is why you should already start choosing your mezzanine partner:
Larger Funding Amount
If you rely on banks for funding, you may or may not be successful bringing in new money. Banks are increasingly unpredictable.
In order to become a success in the middle-market, you will need capital to fuel your growth. With mezzanine debt, you will get more funding than you would from a bank, due to mezzanine loan being based on cash flow value.
Stronger Cash flow
Mezzanine loans are longer term which helps increase your cash flow. With mezzanine you get non-amortizing principal and more time to repay, which may be even longer than 5 years.
With the increased cash flow, you could achieve a lot, including:
- Repay any senior debt that you owe
- Use the cash to develop new products
- Expand into geographically-new markets
- Save it and spend it on a future opportunity
No Change in Management
Great companies take advantage of all growth opportunities. With the increased cash flow from the favorable mezzanine structure, you will also be able to come up with a stronger and more compelling growth plan.
You will also have a greater ability to stick to the plan, because of the stronger cash flow and flexible debt structure.
A Greater Opportunity to Grow
Consider a business that where the owner has invested a lifetime building. He or she is in the best position to drive the business to its fullest potential.
Mezzanine lenders understand this and respect the critical role that management plays. Management continues to have control of the business in a mezzanine relationship.
The experts on Attract Capital’s team have the last word when it comes to mezzanine debt financing. They can help your company carve a niche that is all its own within the middle-market. Call 631-645-1553 right now and get all your questions answered!