Definition
Mezzanine financing is a hybrid form of debt financing that is typically used to fund expansion and growth, combining elements of debt and equity.
Related Services
Private equity, venture capital, and financial advisory services help businesses access mezzanine financing while managing risk and ensuring favorable terms.
Problem and Application
Mezzanine financing offers flexibility but often comes with high interest rates and equity stakes, which could dilute existing shareholders.
Conclusion
Mezzanine financing is a valuable option for businesses seeking capital for growth but should be used with caution due to the potential cost and risk.
