If you need additional funds to grow your business but don’t want to sell or lose control of your company, Benson Capital can help.
Growing your business
When you are not able to secure all the money you need to grow your business through traditional loans, a mezzanine loan can help fill the gap.
A mezzanine loan is hybrid of debt and equity financing, that is typically used by cash flow positive companies to further growth through expansion projects, investing in working capital, or developing products. The equity in the business is used as security. If the debt cannot be paid back within the predetermined timeframe, the debt becomes an equity share in the business.
The advantages of mezzanine financing include:
- Loans are structured to ensure business owners retain control of their company and its strategic direction;
- It is a lower cost alternative to raising equity or selling shares to an investor;
- The interest paid on the loan is tax deductible;
- It is treated like equity on a company's balance sheet, which allows them to obtain traditional financing easier.
At Benson Capital, we work to understand how your business functions, and draw from our experience from investing in a variety of industries when approaching your business needs.
Contact us today, to find out how we can help support your long-term strategies.