Build Synergy Capital

Short-Term Mezzanine Finance

From £50,000 to £20 Million+

Mezzanine finance is a versatile funding option for property developers seeking additional capital beyond traditional bank loans. Positioned between senior debt and equity, mezzanine financing offers flexibility and higher loan-to-value ratios, making it an attractive option for projects with significant growth potential.

In essence, mezzanine finance acts as a secondary loan, providing developers with access to funds to bridge the gap between senior debt and equity investment. This form of financing is characterized by its subordinated position in the capital stack, meaning it ranks behind senior debt in terms of repayment priority but ahead of equity.

Key features of mezzanine finance include:

1. Flexible Terms: Mezzanine loans typically feature flexible repayment terms, including deferred interest payments or payment-in-kind options, allowing developers to preserve cash flow during the initial stages of a project.

2. Higher Loan-to-Value Ratios: Mezzanine finance can complement senior debt by providing additional leverage, enabling developers to fund a larger portion of their project costs without diluting equity ownership.

3. Equity Participation: Mezzanine lenders often have the option to convert their debt into equity ownership in the event of default, providing an added layer of security and alignment of interests between lenders and developers.

4. Risk Mitigation: Mezzanine finance can enhance risk-adjusted returns for investors by diversifying their portfolio across different layers of the capital structure, thereby mitigating risk exposure.

For property developers, mezzanine finance offers a strategic financing solution that can accelerate project timelines, unlock value, and facilitate growth opportunities. By understanding the unique advantages and considerations of mezzanine finance, developers can optimize their capital structure and maximize returns on their investments.

For tailored mezzanine finance solutions tailored to your property development projects, Contact Us today to speak with our experienced team of finance specialists.

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Some potential uses:

  • Providing additional capital to bridge the gap between senior debt and equity.
  • Supporting expansion plans, such as the acquisition of additional properties or development sites.
  • Funding renovation or refurbishment projects to enhance property value.
  • Facilitating management buyouts or corporate restructurings within property development companies.
  • Supporting recapitalization efforts to optimize the capital structure of property portfolios.
  • Financing joint ventures or strategic partnerships in the real estate industry.
  • Supporting property developers in meeting equity requirements for senior debt financing.
  • Providing flexible financing solutions for complex real estate transactions.

We can move very quickly giving an immediate decision and very often have the loan offer issued the same day. Funds can draw down generally within a matter of days and our experienced team will assist with all the necessary administration and valuations to ensure a smooth process.

How We Can help You Succeed With Mezzanine Funding

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