Mezzanine Financing


Mezzanine financing involves a hybrid of debt and equity financing typically used to finance the expansion of existing companies. Mezzanine financing is essentially debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full.  It is advantageous because it is treated like equity on a company’s balance sheet and may make it easier to obtain standard bank financing.