Mezzanine Finance In Lancashire

Mezzanine Finance

With a cost-effective funding solution with Lancashire based Simply Bridging for your business, you can fund your growth strategy. If you are having trouble raising sufficient capital to fund your next company venture, mezzanine finance can help. It provides a one-of-a-kind, cost-effective option that could bridge the gap between your current funding arrangement and the project’s cost. It allows firms to realise their full growth potential without relying on a single source of funding.

WHAT IS MEZZANINE FINANCE?

Mezzanine finance is a type of debt financing that also includes equity investments. Alternative lending companies that will provide a company loan to support your growing initiative in exchAnge for a percentage of your revenues offer this hybrid funding solution. Mezzanine financing is used to supplement money provided by another source, such as working capital or a traditional lender.
Traditional kinds of funding are more difficult to get than mezzanine financing. Unlike many secured business loans, which require the borrower to put up property or land as collateral, business owners must give the lender a part in the company. Some agreements require a profit return from the funded project, while others require investors to purchase a stake in the company. Some commercial deals and endeavours are thought to have a higher risk factor than others. Mezzanine finance is available to offset the difference if a business owner cannot secure sufficient capital through standard lending channels.

Traditional lenders are more risk conservative than equity investors, and they are more likely to fund entrepreneurial initiatives. Their primary goal is to expand, so they choose to invest in businesses with strong growth potential or a higher sale value.

Mezzanine financing can be used in a variety of ways. In every situation, business equity is used as collateral for the loan. If the business cannot repay the loan, the shares used to secure the loan will be sold to clear any remaining debts. Some lenders demand a portion of the venture’s revenues, but if the loan is repaid within the agreed-upon timeline, the lender will not seek to hold any shares at the conclusion of the term. Some lenders will ask for company shares, depending on the amount needed and the level of risk they perceive. They see the deal as an investment, and they will try to get the most out of it by capitalising on future growth.

For organisations involved in acquisitions and buyouts, as well as those with plans for rapid expansion, mezzanine finance is an appealing type of alternative financing. It is often utilised to fund high-value projects with a favourable return, which makes it appealing to alternative loan sources.

Mezzanine finance allows developers to a lower amount of their own funds into a development, which helps with cash flow as one of the main benefits. If you prefer not to use a significant amount of your own funds then mezzanine finance can make the difference when trying to get a development project of the ground. 

Even if you have significant personal funds available you may choose to utilise mezzanine finance which would enable you to retain more of your own funds to contribute towards other development projects.

Simply Bridging work with various different funding partners and mezzanine lenders. We have worked hard over the years to establish good relationships and our experience means we can find the right mezzanine lending partner who will be happy to lend to you and the subject development. 

We will work with you to prepare your comprehensive lending proposal including CV’s detailing relevant development experience. The appraisal on the site including build costs and timescales, cash flow, expected gross development value versus site acquisition costs, full planning information and finally a breakdown of your assets and liabilities. 

The next step is to contact us on the number below to discuss your requirements in more detail and then we can put you in the best possible position to fund your next development.

Simply Bridging work with various different funding partners and lenders as well as private individuals. We have worked hard over the years to establish good relationships and our experience means we can find the right lending partner who will be happy to lend to you and the subject development. 

We will work with you to prepare your comprehensive lending proposal including CV’s detailing relevant development experience. The appraisal on the site including build costs and timescales, cash flow, expected gross development value versus site acquisition costs, full planning information and finally a breakdown of your assets and liabilities. 

The next step is to contact us on the number below to discuss your requirements in more detail and then we can put you in the best possible position to fund your next development.

Mezzanine financing is typically used for huge initiatives involving a high level of risk, such as a new purchase or expansion into new markets. If your company has been unable to get sufficient capital through alternative loan arrangements, mezzanine financing may be the best option for your company’s current and future needs.

Advantages of a Lancashire based Mezzanine Finance Advisor

Why is Mezzanine Finance beneficial?

Mezzanine financing is widely regarded as a cost-effective source of capital for developing enterprises. Unlike traditional financing, which is paid back in monthly instalments, mezzanine financing can be paid back once a year. Some arrangements include tiny interim repayments followed by a lump sum settlement at the conclusion of the period. This makes it easier for firms to keep track of their cash flow throughout the year. Mezzanine finance is typically more accessible and faster to arrange than traditional kinds of loans because it is backed by equity.

If you require more cash to fund a new project, please fill out our online application, and our professional mezzanine team will respond within 24 hours with a decision.

Find out more about how we can help you with your development finance requirements by calling us on 01772 217917. Alternatively send us an email, we guarantee to respond to all enquiries the same day.