Do you need to access funds without providing specific documents, such as income proof, tax returns, and financial papers? If so, then mezzanine financing may be what you are looking for. However, you should understand other facts about it. At Quantum Capital, we can help you find out whether mezzanine financing is the type of loan you will truly benefit from.
Our goal is not about profiting; rather, we want to establish our company as a trustworthy source of commercial loans. Whether you need funds for a property investment or a construction project, we will guide you towards determining the best loan option for you.
Is Mezzanine Debt Suitable for You?
Mezzanine financing, although does not require documentation, is an addition to your existing or senior debt. It means that you should already have an existing loan with a bank or a public lender. It helps us assess your credibility by taking security over the assets or property you may have used to secure the loan. A mezzanine debt ranks next to your senior debt.
If you need financing of at least $2 million with terms up to three years and rates starting from 12%, mezzanine financing may be what you need right now.
Our mezzanine lenders acknowledge the entitlements of the higher ranking lender. Therefore, the senior debt lender can recover this subordinated debt piece. The recovery of debt is under an arrangement related to the security of the loan.
Leverage Your Capital with Mezzanine Loans
Also known as Junior Debt, mezzanine financing is right between your equity as a developer and the senior debt. Practically, it is an extension of your existing debt, typically going over your current Loan to Value Ratio (LVR). Most banks and conventional lenders will not go beyond the offered LVR, which is typically a little over 65% of the Total Development Cost of your project.
With our mezzanine lending, we can advance this percentage to an even higher amount of your TDC. As you can see, this type of loan will benefit you greatly. If you are a developer, you have the ability to leverage your capital through this loan while utilising the funds instead of committing to the project alone. Therefore, you can use the additional cash to secure your next site.
Quantum Capital Makes Everything Easier
In the real world, you will have to perform various steps first to secure a mezzanine debt. It is not always that simple. You have to de-risk the current project as much as you can. Plus, the high rates can be off-putting since mezzanine lenders are not always keen on providing the financial help you need.
This is where Quantum Capital enters the picture. We will help provide the right financial assistance you need for your project. Our objective here is to advise you on how to get the most suitable capital mix so you can enjoy an excellent return for the construction or investment that you are working on.
If the bank approved your loan but the amount you receive will not cover the total cost of your expenses, mezzanine funding is the answer. Contact Quantum Capital today to learn more.
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