Should I use mezzanine loan?
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iggy
Apprentice
Joined: 25 Sep 2005
Posts: 1
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 Posted: 01/30/09 - 07:19 Post subject: |
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| I am thinking about options for financing in my company, and somebody brought the possibility of a mezzanine loan to my attention. This is not something that I had really considered before, and I am not certain that I know what all the pros and cons are of this. Do you think that I should use a mezzanine loan? |
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william
Apprentice
Joined: 27 Apr 2006
Posts: 1
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| Posted: 02/02/09 - 13:56 Post subject: |
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| As far as I am able to make out from your post, I understand that you are on your own or at least have a small sized company. I think that mezzanine capital is more suitable for bigger companies which are going through a phase of fast growth (growth financing is probably the most common reason to use mezzanine capital). |
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ericha
Apprentice
Joined: 11 Sep 2005
Posts: 2
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| Posted: 02/05/09 - 20:34 Post subject: |
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| That is a very personal decision and I don't think that I or anyone else on this forum could help you to make that decision unless we have full insight into your personal situation! Perhaps you would care to tell us a bit more about what you would be using the mezzanine credit for? |
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urbanus
Apprentice
Joined: 01 Mar 2007
Posts: 2
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| Posted: 02/09/09 - 03:11 Post subject: |
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| You should be aware of the fact that mezzanine loans charge a much higher interest rate than traditional bank loans and that they have a lot of other downsides as well. I am not saying that mezzanine loans are not very good solutions for some people, but I think that you should carefully consider every angle before making up your mind. |
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