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Why is mezzanine financing appealing?

April 26, 2017appealing financing Mezzanine

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Why is mezzanine financing appealing?

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Many business owners need more capital than banks are willing to lend. Without bank funds, owners may be forced to forego growth plans or take on equity partners. This latter option may be undesirable to most business owners due to shared decision making and other restrictions required by equity investors. Mezzanine financing offers the company more flexibility than a traditional bank loan.Mezz loans provide equity type capital with only minimal restrictions on how current management/owners operate.