This is a mixture of traditional debt financing and capital financing which is useful both parties. Mezzanine financing is a financing model developed in 1990s. Establishment are able to obtain financial resources through a method between borrowing and issue of new shares. In short, this kind of financing can be carried out just after the venture capital or just before the public offer.
The company is financed through venture capital, convertible bond and/or private placement. In contrary to traditional bank credits it does not require any mortgage or guaranty. It is mobile like debt financing or in other words it is movable.
Mezzanine financing is attractive for establishments in particular in terms of liquidity. Although such financing is attractive to establishment it also imposes several risks. Therefore, it is essential to receive a professional guidance while employing this financing method. Jitna provides your company with assistance in getting the rightest decision by laying risks and guaranties necessary for your establishment.