Mezzanine Financing

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Home Startup Terms Glossary Mezzanine Financing

What is Mezzanine Financing?

Mezzanine financing is the middle ground between senior debt and equity that has characteristics of both types of financing. This type of financing allows company owners to convert their equity into cash, usually as long as venture capital companies or other high-level investors have been paid. Mezzanine financing is only used when a company goes into default.

Mezzanine Financing Examples

Here are some examples of mezzanine financing facts:

  • Has higher yields than other debt
  • Is one of the riskiest forms of debt
  • Collateral is rarely required
  • Interest rates can be fixed, variable, or both

This web page is also about mezzanine financing.

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