Mezzanine Finance - Its overview, its pros, and the situation it needs

Posted by Challis Capital on February 18th, 2019

When we think about growth, the first thing which strikes our mind is the routes which should be taken to grow ourselves. There are a lot of businesses all over the world, which seek growth and expansion all the time. The expansion brings in a lot of opportunities and benefits, which are both financial and practical.

Mezzanine financing is a form of debt that can be a great tool to fund specific initiatives like plant expansions or launching new product lines, as well as other major strategic initiatives like making an acquisition, financing a shareholder dividend payment or completing a financial restructuring to reduce debt payments.

Mezzanine financing provides a solution for debt and equity and intervenes among secure senior debt and equity. Mezzanine financing helps you in a lot of ways some of which include-

• Maximizing your borrowing potential
• Tailored to suit you
• Offers options of flexible repayment conditions & early exits
• Long term capital
• Current owners maintain control

When to Use It

Common situations include:

• New growth initiatives
• Financing new acquisitions
• Buying out a business partner or shareholder
• Generational transfers: a source of capital allowing a family member to provide liquidity to the current business owner
• Shareholder liquidity: financing a dividend payment to the shareholders
• Funding new leveraged buyouts and management buyouts

On the other side, Individuals whose businesses are not performing properly due to one reason or another and who cannot qualify for commercial loans from most financial institutions should consider bad credit loans.  Bad credit loans for business can be taken with the aim of either remodeling a business or even improving its operations. Such loans could work miracles for a business that was on the brink of failure

One of the best things about Bad Credit Commercial Loans is that they can actually help an individual to improve their credit score. These loans are usually injected into a business in order to create profit. Individuals who take these loans are usually likely to pay them without defaulting. This will help them to improve their credit ranking.

Challis Capital Partners ('Challis Group') comes into the existence with an aim to create a capital partnership between our investor clients, and property trade participants who are looking for innovative financing solutions. Our mission is to provide each our clients and investors with distinctive, value-added opportunities.

The thing which makes us different from others is our team of work. So regardless of what your project-specific desires are, you can be sure that a conversation with us is one worth having.

From the above discussion, we can conclude that considering Challis Capital Partners for real estate finance and Preferred Equity solutions or much more proves best to you in all aspects because of its years of experience and team of workers.

To know more about Mezzanine Finance please, call us at 1300 01 01 71 or visit our website here : https://www.challiscapital.com.au/