Business and Investment sidenote

As the old adage goes – “when your bank says no, our finance company says yes”.  Many unfortunate finance companies used this approach to woo customers during the bull market. Unfortunately, they said yes too many times and went bust. With all of the squirrelly behavior coming out of banks these days, it is hard to feel that you can trust them.

So who is out there to fund your company? Well is depends on what you want to do, but there are pockets of capital in the market.  We deal with companies that either are buying other companies or are growing very fast. In both of these cases, banks are frequently unable to provide all the money our clients need. They turn to us to help them find the best type of financing for them.  This often ends up being mezzanine financing.

Mezzanine financing is as its name implies sits in the middle – just like a mezzanine level at a football stadium.  It fills the gap between bank loans and the equity.  Mezzanine debt can help you do some very important things such as doubling or tripling the size and value of your company.  It lets you do things that banks are not comfortable letting you do. It involves paying a higher rate than a bank loan – about 12% and giving up an equity warrant in the company usually around 10%.  We have worked with many companies that have doubled, tripled or even quadrupled their value with mezzanine debt.  If you are looking to grow and struggling to find an alternative to your bank or costly equity, you should consider mezzanine debt.  Properly structured, it can be a very valuable resource to your company.

About Attract Capital

Attract Capital, LLC Attract Capital is an expert in measuring any company’s mezzanine debt capacity. Regardless of the type of business, its revenue size ($10 million to $100 million) or financial trend (strong, flat, uneven) – we bring life to a business’ mezzanine debt potential. Through creating this possibility of mezzanine debt financing, we greatly expand our client’s access to capital.