💡 Creative Financing
Mezzanine Financing
A hybrid of debt and equity financing used in commercial transactions, sitting between senior debt and equity, often secured by ownership stakes.
Common Uses
- Commercial real estate acquisitions
- Business buyouts
- Larger transactions needing layered capital
General Characteristics
- Subordinate to senior debt
- May convert to equity on default
- Higher cost than senior debt
Potential Provider Types
- Mezzanine lenders
- Private equity firms
- Specialty finance companies
Important Considerations
- Equity participation or warrants
- Cost relative to senior debt
- Complex structure and review
This information is general and educational only. Eligibility, rates, fees, and terms vary by provider and are determined solely by the provider. Trio does not assess whether you personally qualify for any financing.
Trio Marketplace is not a financial institution, lender, mortgage brokerage or financial advisor. Trio does not provide, approve, arrange or guarantee financing. Financing products and services are provided by independent third-party providers. Eligibility, rates, fees, terms and approval decisions are determined by the applicable provider.