Mezzanine financing is a creative, hybrid funding option combining features of debt and equity. It enables businesses to secure growth capital or fund acquisitions with flexible repayment terms, minimal dilution of ownership, and higher approval rates compared to conventional loans. Mezzanine solutions offer competitive returns to investors and greater strategic flexibility to companies seeking to maximize their growth potential.
Mezzanine financing is structured as a combination of debt and equity, typically ranking below senior loans but above common equity in the capital structure. It usually comes without collateral and may include features like convertible debt or preferred equity. It is especially useful for companies with strong growth plans and established profitability seeking a cost-effective, less dilutive alternative to selling equity.