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📊 Specialty Financing

Mezzanine Financing

Flexible subordinated debt that bridges the gap between your senior loan and your equity on larger acquisitions. When the bank covers 70% and you have 15%, mezzanine covers the middle so the deal closes without giving up ownership.
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Quick Facts

  • Loan Amount
  • $500,000 to $10,000,000
  • Interest Rate
  • 12% to 20%
  • Term
  • 3 to 7 years
  • Down Payment
  • Varies by structure
  • Timeline to Fund
  • 30 to 60 days
  • Min Credit Score
  • 680
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Why Is the Rate Higher? The Capital Stack Answers It.

Mezzanine sits between the senior lender and your equity. It gets paid after the bank, which is exactly why it costs more and why it exists.

Senior Debt

Bank or SBA loan. First position. Lowest rate. Paid first.

Mezzanine

Subordinated. Fills the gap. Higher rate for higher risk position.

Your Equity

Your injection. Last money out, first loss.
The alternative to mezzanine is usually selling equity. A 15% coupon for five years is often far cheaper than giving up 20% of the company forever.

Requirements

What you’ll need to qualify for mezzanine financing

✓

Credit score of 680 or above for principal owners

✓

3+ years in business or acquiring an established company

✓

$1M+ in annual revenue (target or existing business)

✓

Strong cash flow that supports both senior and mezzanine debt service

✓

A senior lender in place or being arranged concurrently

✓

Meaningful equity injection alongside the debt

Best For

Common scenarios where mezzanine is the right fit

Larger Acquisitions

The purchase price outruns what senior debt plus your cash can cover, and you don't want to bring in equity partners.

Partner Buyouts

Buying out a partner at a valuation the bank alone won't finance, while keeping full ownership.

Growth Without Dilution

Expansion capital beyond your senior facility's ceiling, priced as debt instead of permanent equity.

Frequently Asked Questions

Does mezzanine replace my bank loan?

No. It stacks on top of it. The senior lender stays in first position, mezzanine fills the gap between that loan and your equity.

Why would I pay 12% to 20% instead of raising equity?

Debt ends. Equity is forever. If the business performs, a few years of higher-rate interest is usually cheaper than permanently giving away a share of everything the company earns and eventually sells for.

Will my senior lender allow it?

Usually yes, with an intercreditor agreement that sets who gets paid first. Structuring both pieces together is exactly the kind of deal we run across our lender network.

See If the Whole Stack Works

No commitment. No credit pull. Just clarity on what the numbers actually carry.
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