Post by account_disabled on Dec 24, 2023 22:40:39 GMT -5
Who is Mezzanine Capital Suitable for? Mezzanine Capital is Primarily Used by Young Companies . Here, the Creditworthiness and the Capital Requirements Are Disproportionate, Which is Why Banks Often Only Grant Small Loan Amounts. Mezzanine Capital Can Close a Financing Gap. In Addition, Mezzanine Capital is Suitable for Everyone Who Wants to Increase Their Equity Ratio Without Giving Up Any Say and Without Their Credit Rating Deteriorating.
When Does Mezzanine Capital Make Sense? A Practical Example Mezzanine Capital is Particularly Suitable if You Want to Make Large Expenditures for Which You Cannot Get C Level Contact List Sufficient Bank Credit. What Such a Situation Can Look Like is Illustrated Below Using a Mezzanine Capital Example : Imagine You Want to Open a New Location Because Your Previous Business Model Has Proven to Be Viable.
After a Professional Capital Requirement Calculation , You Know That You Need 1.3 Million Euros for This. You Ask Several Banks About a Loan, but Due to Your Current Sales Development They Are Only Willing to Provide You With 450,000 Euros. There is Therefore a Financing Gap of 850,000 Euros. You Can Now Find Private Investors , but the Amount Required is Quite High and the Project Could Be Difficult. This Means There is a Greater Likelihood of Obtaining the Required Capital From an Insurance Company or a Mezzanine Fund.
When Does Mezzanine Capital Make Sense? A Practical Example Mezzanine Capital is Particularly Suitable if You Want to Make Large Expenditures for Which You Cannot Get C Level Contact List Sufficient Bank Credit. What Such a Situation Can Look Like is Illustrated Below Using a Mezzanine Capital Example : Imagine You Want to Open a New Location Because Your Previous Business Model Has Proven to Be Viable.
After a Professional Capital Requirement Calculation , You Know That You Need 1.3 Million Euros for This. You Ask Several Banks About a Loan, but Due to Your Current Sales Development They Are Only Willing to Provide You With 450,000 Euros. There is Therefore a Financing Gap of 850,000 Euros. You Can Now Find Private Investors , but the Amount Required is Quite High and the Project Could Be Difficult. This Means There is a Greater Likelihood of Obtaining the Required Capital From an Insurance Company or a Mezzanine Fund.