Banks are lending significantly less than they used to, and so Mezzanine finance is increasingly used to help fund the gap.
What is Mezzanine Finance?
Mezzanine finance is a hybrid of debt and equity financing that is typically used to finance the expansion of an existing company. Basically debt capital, it 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.
Mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, therefore this type of financing can be aggressively priced.
Mezzanine Finance for you
Our team at REFC is being called upon increasingly in this area. Our experts in this field are often able to secure deals with lending up to 90% of cost for residential developers.