Mezzanine & Equity Finance

Mezzanine finance

It's likely that mezzanine finance is what you need when bank and building society lending policies leave you floundering on the rocks, giving you access to additional, specialist development finance to keep your project afloat.

Mezzanine finance can provide commercial or residential development finance over and above bank and building society maximum senior debt limits in return for increased revenue or profits. Some mezzanine lenders will even consider applications to top-up to 100% of the total project finance required.

Equity finance

Equity finance is a method used to fund any shortfall between a senior debt loan and the full project requirements. This works by creating a second charge behind the senior debt lender in return for an agreed share of the eventual profits and/or equity in the completed project. Through this arrangement the equity finance company becomes a joint venture partner.

Of course, these options are not right for everybody and are generally made available only to experienced developers. However, OSL has helped many projects to navigate these tricky waters and will explore every available option on the horizon.