A hybrid of debt (bond) and equity financing, typically used to finance the expansion of existing companies.

It is beneficial because it is treated like equity on a company's balance sheet and may make it easier to obtain standard bank financing.

To attract mezzanine financing, a company usually must demonstrate a track record in the industry with an established reputation and product, a history of profitability, a viable expansion plan for the business (e.g. expansions, acquisitions, IPO).