How do Mezzanine Finance Loans Work? -

Experienced and financially savvy developers are interested in mezzanine finance / preferred equity as it provides the following benefits: It gives the developer the power to determine the level of equity (if any) they wish to contribute to a project It is generally cheaper than equity; and provides a higher rate of return on equity The borrower can use their equity elsewhere, effectively diversifying risk The property developer can continue with the project on a ‘stand alone’ basis

Santander Corporate & Commercial will support small and medium-sized businesses in Britain with a £100 million mezzanine financing scheme it will launch on 25 March.

A Tutorial on Mezzanine Finance for Entrepreneurs

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