Commentary: Mezzanine Financing Could Take Business Higher

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Q: I'm a business owner and need capital to expand to the next level. We have a solid track record and a solid business plan for the future. I don't want to use my personal assets as collateral, provide a personal guaranty or relinquish ownership of my company. It has been suggested I consider "mezzanine financing," but the interest rates seem too high. How does mezzanine financing work? Would this be a viable option? Could it really help my business?

A: I can sense the frustration in your question. Traditionally, a privately held company simply cannot access the same fluid capital flow as a publicly held company. You're right to establish criteria and see which form of liquidity is the best fit.

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Commentary: Mezzanine Financing Could Take Business Higher

Mezzanine financing is a hybrid of traditional debt and equity financing. It is typically used to finance the expansion of companies with a track record of past success and a sound business plan...

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