Mezzanine Finance

Mezzanine Finance for Small and medium-sized enterprises

A financial product designed for well-established small and medium-sized enterprises (SMEs) with a longer-term horizon, Mezzanine Finance provides enhanced flexibility compared to traditional bank financing regarding collateralization and repayment terms. Typically, Mezzanine Finance is structured as self-liquidating and frequently incorporates potential benefits for the financier.

Our Mezzanine Finance facility provides an opportunity to maintain capital costs at a minimal level, effectively mitigating the need to relinquish equity or forfeit hard-earned profits upon the completion of your ongoing projects.

In situations where you possess the necessary expertise, capability, and competence but find capital to be insufficient, Mezzanine Finance emerges as a strategic, enduring solution that empowers you to undertake and successfully execute multiple projects, ultimately driving tangible growth within your business.

What is Mezzanine Finance

The concept of Mezzanine Finance typically denotes a financial mechanism that amalgamates elements of debt and equity into a single investment. In developed economies, it stands as a sophisticated instrument integral to a multifaceted capital structure. However, in emerging markets like South Africa, its primary purpose lies in bridging funding gaps rather than being an integral component of the business’s capital structure.

It’s essential to note that the Mezzanine Finance provided to small and medium-sized enterprises (SMEs) in South Africa predominantly serves the purpose of filling funding gaps and does not typically form part of a layered capital structure.

For reference, please find our minimum finance criteria below:

– Minimum finance amount ranging from R1 million up to R25 million.
– Eligibility for small to mid-sized businesses (SMEs) in operation for three or more years.
– A minimum annual turnover of R10 million, or alternatively, an annual turnover falling between R5 million and R10 million, provided there is ongoing growth context, such as a contract, project, or acquisition. To learn more about our comprehensive Finance Criteria, please refer to our official documentation.