A Mezzanine lender finances debt that is junior to or subordinate to traditional/senior debt. Mezzanine lenders are more concerned about their overall yield than other senior lenders; therefore, they are willing to tailor their investment to meet the financial, operating and long term cash flow needs of the borrowers. These lenders are typically flexible on amortization, term, and interest rates as long as their return is realized.
Most businesses require additional funding at some time during their corporate existence. Mezzanine lenders, by definition, offer this type of funding to manage ongoing expenses and one-time business needs. A comprehensive mezzanine lenders list would include venture capitalists, angel investors and subordinate loan providers that offer an array of financial arrangements designed specifically to augment existing funding arrangements. These loans are evaluated and offered on the basis of risk versus reward, rather than the more traditional underwriting methods used by banks and large lending institutions. The mezzanine lender typically requires a greater return on investment due to this focus on financial profitability; however, these lenders are also more willing to undertake risky investments and to fund proposals presented by newer companies. This can make them a valuable funding source for start-ups and for businesses with less than perfect credit histories.
CNF Exchange is an exceptional resource for companies in the market for a mezzanine lender or for any other lending solution. The online platform allows companies to upload a comprehensive funding application easily for review by mezzanine lenders. Small businesses can receive funding offers online, eliminating the stress of face-to-face meetings and prolonged interviews. CNF Exchange allows businesses to streamline their lending arrangements in order to manage their finances more effectively.