Mezzanine financing 
     

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).

Our glossary of financial terms let you find the terms and definitions that are commonly used in venture capital and business financing. Use the form below to find a term.
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