Mezzanine Financing
Mezzanine Financing is late stage financing, by using venture capital, usually before Initial Public Offering. It is a combination of debt and equity and it is provided quickly, with little or none collateral by the borrower.
Mezzanine financing is treated as equity in the company’s balance sheet, which gives it the opportunity to derive regular bank financing.
If the loan is not paid back, lender has the right to convert his capital to ownership.
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