A mezzanine loan is a type of financing that bridges the gap between senior debt and equity. We offer mezzanine loans as a hybrid financing option for companies looking to fund expansion projects. These loans are subordinate to senior debt but rank above equity in repayment priority.
Mezzanine loans provide businesses with access to additional capital where traditional senior lending reaches its limit. By sitting between senior debt and equity, a mezzanine loan allows companies to progress growth initiatives without the need for immediate equity dilution.
At Allott Capital, we provide mezzanine loans as part of a broader commercial lending offering. We assess each facility for established businesses with defined funding requirements and a clear commercial purpose. This allows borrowers to access supplementary capital where traditional senior lending alone does not meet the needs of the transaction.
A mezzanine loan may be suitable where senior debt limits restrict the amount of capital available for a transaction. These facilities are commonly used to support business expansion, acquisitions or time-sensitive funding requirements where equity injection is not preferred. Mezzanine loans are typically most effective when there is a defined exit strategy, such as refinancing, asset sale or completion of a specific project.
Our mezzanine loans are designed to complement existing senior facilities rather than replace them. These facilities are short-term in nature and structured to align with specific business objectives, such as project completion, refinancing, or asset realisation. Security, loan terms and repayment structures are assessed on a case-by-case basis to ensure the facility aligns with the commercial purpose of the loan.
Mezzanine lending is best suited to experienced business owners who understand the commercial risks and obligations associated with subordinated debt. Before applying, consider:
Create a structured plan for repayment aligned with the commercial purpose of the loan.
Allott Capital provides mezzanine loans to experienced business owners requiring structured access to capital. We assess applications based on commercial merits, with a focus on transaction viability, security position and execution strategy. Get in touch with us to learn more or apply below.
