working capital management Working Capital Management | Page 10

MEZZANINE FINANCE
PROVIDERS
Mezzanine Financing happens to be a fusion of equity
financing and debt. This gives the lender rights to
convert to an equity interest in the company in event of
default after the senior lenders and venture capital
companies are paid. Mezzanine loan is then treated like
an equity on the balance sheet of the company in such
event and is completed with diligence on part of lender
with some or not collateral on borrower’s site.
In order to attract mezzanine finance providers,
companies usually display a track record in the industry
with an esteemed repute and product along with viable
business expansion plan via acquisitions, expansions
or initial public offering and history of profitability.