What is Mezzanine Financing In Real Estate & Its Benefits

What is Mezzanine Financing In Real Estate & Its Benefits

By TLB Contributing Writer: Walter

Mezzanine financing is one of the most attractive deals that the market has been given by the lending industry. This has some very considerate deals and despite the fact that it has a higher level of strictness it is however good for growing businesses. Dealing with and incorporating experts into your business is an irresistible offer in the market. Mezzanine will blend in debt and equity financing in your business. Think of it as having a new shareholder in the business who comes with some good cash but in the end, you will refund the cash to them. This is exactly how this plays out. Are you thinking of mezzanine investment then I will give you more reasons why you should actually consider it?

1. Retainment of ownership

For those of us who sat in an economics class, you can remember that one of the ways of getting capital is by selling your share to an investor who will finance your business. What if I told you that Clopton Capital can do just that but with a much better offer. In this case despite the fact that there is a new player in the business they hold very little or no ownership of the business. This is of course with the condition that you will pay up with time. At Clopton Capital will get the best dealership in the market and they can connect you with any deal you want for the growth of your business whether it is big or small.

2. Less approval time.

Now. You are anxious to make a leap in your business probably you have spotted a business gap or you are just in the competitive spirit and you decide to try out the mezzanine loan. Then this is a very good decision that you will be making as this kind of loan has the time benefit and does not delay like the rest of the loans. This is simply because it will not require some form of security. They will just assess your offer and assume equity. This will save you a lot of time you would have spent as you wait on an application approval on your loan.

3. Equity

The best an unique part of this kind of loan is that it has equity attached to it. This means that you will be equal partners with the lending company. All will go well if you stick to the agreement and pay as agreed in not only a timely manner but also in full. After all, this is business

Commercial real estate mortgaging has grown and it has had a variety of offers and mezzanine has come out stronger than most of the others. A study done in Florida has shown that actually, many business people will opt for this kind of plan than the rest. They have found it more appealing especially due to the time benefit that they give them and that they will be investors too, not only lenders.