When evaluating capital funding solutions, companies should ask the right questions. They should consider options for internal and external growth. Growth options may include de-risking the company, pulling money out of the company, or concentrating the net worth of the company into equity value. A proper capital strategy can make all of these choices. Here are some factors to consider:
Mezzanine loans offer investors the security of a secure return on their investment. Unlike equity lenders, mezzanine investors are not at the mercy of the market and are less likely to lose money if a company goes bankrupt. In return for their investment, mezzanine lenders perform due diligence and typically look for a business with a track record of profitability and a detailed plan for use of the funds.
Mezzanine financing provides businesses with the capital they need to grow. This type of capital is patient and allows companies to maximize the value of their stock by increasing the returns on equity. Because mezzanine lenders provide capital abundance, mezzanine loans are a viable option for many middle market companies. A mezzanine loan is an excellent choice for growth-stage businesses. Whether your business needs to build a larger facility, complete acquisitions, or expand sales, mezzanine loans are a great option.
Lines of credit
Banks have long offered lines of credit to businesses, but many individuals aren’t as familiar with them. In fact, banks rarely advertise these lines of credit, and most people aren’t aware of their benefits. One of … READ MORE ...