Being a hybrid debt-equity solution, Mezzanine Financing gives the lender the right to convert to an equity interest in the company. They are apparently known to increase an investor's rate of return. They are usually secured based on the ability to repay the debt through free cash flow instead of assets. Repayment for these finances typically falls behind senior banks, most of which view it as equity that results in being much more beneficial compared to other types of structured financing or hard money solutions.
It is most commonly used for expanding businesses or making new acquisitions. It can greatly help you reduce your private equity investment, increase your return on your equity, and in turn, drive immense business growth. In addition to that, it provides a highly flexible arrangement to accommodate specific cash flow requirements of different businesses.
Mezzanine debt for commercial real estate businesses would be a great option, especially for those establishments that have moved beyond the start-up stage and yet do not have enough capital to finance big growth moves. If your business have a strong cash flow and are seeking to expand your business, this would be a perfect financing solution for you.
Mezzanine financing in Cary, NC is provided by several financial services companies, for instance UT Financial Services, LLC that provides a full spectrum of financing options for real estate projects including debt, equity, and bridge financing.
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