First Business


Mezzanine Financing Defined


Mezzanine financing is a type of debt financing whereby a company issues debt that the holders may convert into equity if the debt is not repaid in due course. This debt carries a high interest rate, as there is little or no collateral, but it is low-risk compared to other forms of debt financing because of its convertibility. Mezzanine financing is listed on a company's balance sheet as an asset; some companies use mezzanine financing because it makes it easier for them to obtain financing from other sources. Mezzanine financing is sometimes associated with leveraged buyouts. (source: financial-dictionary.thefreedictionary.com)

Mezzanine Financing with First Business

  • First Business offers its clients Mezzanine Financing through a strategic business partner, Aldine Capital
  • Fills the financing gap between owners' equity and traditional bank financing, where the maximum bank loan might be capped by collateral requirements.
  • Obtain unsecured debt financing based on cash flow rather than traditional collateral.
  • Increases balance sheet strength by adding needed capital.
  • Reduces ownership dilution (as compared with other forms of equity financing).
  • Opportunity to repay the debt and purchase any equity from the mezzanine lender at a pre-arranged time and place.
For more information, please see our strategic business partner's website at www.aldinecapital.com.


    FBIZ Advantage

    Stay on top of your game with First Business resources tailored to your business needs.

  • See More

    The FBIZ Advantage is a resource center geared to help you with all your business needs.

Have a Question?

Let us put you in touch with the appropriate representative to help you with your business needs.

CONTACT US
See also...

Accounting changes are coming...


We can help you rethink equipment finance strategies and save you money.

Learn more