North Palm Beach, Florida – Commercial Loans will be laying out information on Mezzanine Financing today. Mezzanine Financing is a loan that can be described as a hybrid of debt and equity financing. Mezzanine financing can be structured either as debt (typically an unsecured and subordinated note) or preferred stock. A Mezzanine Loan is generally used to finance the expansion of existing companies. Mezzanine financing is usually funded in a quick manner therefore the lender will usually be seeking a higher return similar to credit card rates.
Many Mezzanine loans are structured that gives the Mezzanine lender the rights to convert to an ownership or equity interest in the company if the mezzanine loan is not paid back in time as stated in the mezzanine loan agreement. Mezzanine financing is generally subordinated to debt provided by senior lenders (First Mortgages) such as banks, commercial lenders and venture capital companies.
Mezzanine loans fill the gap between equity and senior debt and are often used to finance leveraged buyouts, or to fund internal growth strategies. Some Companies are initially financed by seed capital provided by their founders and/or Private Investors. At that point a mezzanine loan can be financed if needed.
A higher LTV is typical with Mezzanine Loans so feel free to contact us now for your financing needs. We provide all types of mezzanine financing programs. Contact us today for a Mezzanine Loan quote and we can begin to find a program that meets your individual needs.
We can also help you with Commercial Loans on purchasing Triple Net Lease Properties or Retail Strip Malls. We will assist you with CTL financing and loans on Apartment Buildings or Construction Loans. Medical Office Parks and Government Leased (GSA) Properties. If you are in need of being refinanced, contact one of our Commercial Loan specialists. We may be able to get you a Non-Recourse Loan for Apartment Buildings.
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