Mezzanine Funding
We can assist with sourcing
mezzanine funding
for development. Once a mezzanine loan is obtained, you will be in a position to approach your major bank for the remaining capital required to complete your project.
Mezzanine capital can be used for property acquisitions, property development and property construction. It fills in the finance gaps for property developers.
The beauty of
mezzanine financing
is that the developer retains control over the company, unlike a JV or pref equity play. A mezzanine loan is a structured facility that sits behind your major bank to provide gap funding between the bank’s LVR and the developers contribution. The mezzanine lender is subordinated to the senior lender and accepts a second mortgage in exchange for a higher interest rate.
Mezzanine funding
is perfect for the developer with multiple projects on the go, who needs to keep capital fluid, while still meeting each project’s funding requirements.
“Mezzanine financing is less expensive than preferred equity and more expensive than traditional bank lending.”
It makes it very easy for the developer to determine their contribution requirements for a project and is faster and easier to raise than equity. Mezz can be repaid as a bulk repayment or as regular, scheduled, repayments.
When considering
mezzanine finance
you should think about how you will use it to its full benefit. Most developers will settle the land, finalise all planning and approvals, get the marketing up and running with a view to obtaining pre-sales and then enact the mezzanine loan.
Close the gap between your funding development costs and first mortgage borrowing capacity. Generally secured with a second mortgage, mezzanine funding can help you access funds through development equity to help you complete your construction project.
Talk to us about your development funding needs and we’ll let you know if
mezzanine funding
is the most appropriate solution for you.
Get your mezzanine financing started by completing our enquiry form and we’ll guide you from there.
Don’t be afraid to chase your dreams; let us find the solution to fund your project so you can make your mark!
Why Choose IBN?
At IBN, we work closely with our panel of Funders, to move quickly on your loan application. We understand that ‘time is money’ and we make the loan process as seamless as possible. Our experienced staff assist you every step of the way with frequent communication on the loan progress.
We present options that others didn’t know existed
We search for solutions and enjoy the challenge of complex loans
We understand the complexities and requirements for a commercial loan application.
We explain our cost-structure from the outset so that you know what to expect.