Mezzanine funding is a good option for business start-ups and the self-employed who fail to meet the stringent conditions set out by traditional lenders such as banks. Universal Finance have access to a network of finance providers that specialise in providing funding solutions for businesses that cannot access loans from the usual providers.
The main benefits of mezzanine finance include:
If you’d like to find out more about Australia mezzanine finance products and their suitability for your specific requirements, please don’t hesitate to drop us a line and discuss your options with a Universal Finance loan consultant.
Finding the right Mezzanine Lending Product for your Needs
Here at Universal Finance we do the hard work, so you don’t have to. If you have been asking yourself ‘What is mezzanine financing’ and struggle to make sense of all the information detailed online, we can help. Simply get in touch with us and outline your needs and our team will scour the market to find the most suitable mezzanine financial product for you, it really is that straightforward. As Australia’s leading difficult loan specialists, we have both the experience and expertise to guide you through the process and get the funding you need quickly.
We have helped literally hundreds of customers secure the mezzanine debt product they need to boost their business when they need it and we can do the same for you. Call us today to find out more.
The criteria for gaining approval for mezzanine financial products is straightforward, but we would generally expect you to provide one or more of the following:
If for any reason, you don’t have or cannot get any of the above, please get in touch for advice, our experienced consultants may be able to provide some guidance. Please call during regular business hours or send us an e-mail at any time.
Mezzanine finance is a high interest stake in business finance that sits between senior finance and equity investment. Mezzanine finance is designed to bridge the gap between what you can borrow from a regular lender for the acquisition or expansion of a business, and the capital investment that you are willing to make. Typically, mezzanine is a short-term finance option that allows the business time to grow while increasing returns on equity investment. Mezzanine finance is known for its flexibility on repayments and alternative options for businesses, such as rolling interest payments back into the loan for repayment in the future.
In terms of finance, mezzanine is an unsecured, high-interest type of financing that ranks below your senior debt but ranks above other debt in the scheme of loan repayment. Mezzanine finance is known to blur the lines between senior debt and equity, just as a mezzanine floor in a building is not quite level one or level two.
Mezzanine finance is a high interest financial product, usually taken on over a short period of time where the lender has the opportunity to reap the rewards of high interest payments while claiming a financial stake in the business itself through the sale of warrants as well as payment in kind. Many mezzanine funds often have the option to convert the debt to equity at a later stage of the loan which provides them with the option to earn profit-based returns on their investment. Mezzanine financing is based on a risk Vs. reward system where the lending is determined by whether the lender believes that the business has the potential to grow in the future.
Mezzanine finance is used by businesses to fund growth and expansion within their industry. The capital injection provided by mezzanine financing lessens the amount of equity investment that needs to be made in order to expand the business, thus lessening the risk for private investors. Alternatively, mezzanine finance is also used frequently in the purchase of larger businesses to improve initial returns on equity investment in the early stages of the takeover. Mezzanine finance is typically used as a short-term solution by businesses to bridge the gap between senior debt, such as long-term business loans, and private equity investment.
Mezzanine finance helps your business by providing a cash injection that bridges the gap between senior finance and equity investment. As a short-term solution, mezzanine finance helps businesses to grow faster with less risk than if you were to inject additional capital or it helps with business acquisition through the hybrid of debt and equity financing. Mezzanine funding doesn’t usually require collateral or guarantees as it is based on the company’s historic and expected cash flow, which gives your business more flexibility. This type of finance can be structured so that there is no dilution of the owner’s equity, ensuring that your investment in the company is protected.