Mezzanine Finance

SME Mezzanine Finance

A long-term finance product for established SMEs, offering more flexibility than bank financing in terms of collateralisation and repayment. Mezzanine Finance is typically self-liquidating and often contains an upside for the funder.

Our Mezzanine Finance …

Our Mezzanine Finance allows the costs of capital to be kept very low as it means that you don’t have to give up equity or give away your hard-won profits at the end of the project you are working on.

When you have the experience, capacity and ability – but not enough capital – Mezzanine Finance is a strategic, long-term solution enabling you to take on and complete numerous projects that result in real growth for your business.

The term Mezzanine Finance …

Mezzanine is is commonly seen as a generic term for financing that incorporates elements of debt and equity in a single investment. In developed countries it’s a sophisticated instrument that is part of a layered capital structure.

However, in emerging markets like South Africa, it is about filling a funding gap instead of filling a gap in the capital structure of the business.

Mezzanine Finance offered to SMEs in South Africa is typically not part of a layered capital structure – but filling a funding gap.

Our minimum finance criteria …

  • minimum finance amount from R1M and upwards
  • you are a small to mid-sized business [SME] in operation for 3 or more years
  • with a minimum annual turnover of R10M, or
  • alternatively with an annual turnover between R5M – R10M, provided there is some current growth context [for example a contract, project or acquisition]
  • read more about our Finance Criteria

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