Equity or mezzanine loan: what's the right choice?
The choice of financing is a crucial step in the success of a project or the development of a company. Finding the right solution helps optimize costs, secure investments and ensure sustainable growth.
At Prestaflex, we support our customers every step of the way, offering flexible, tailored financing solutions. A mezzanine loan is one of the most advantageous options for raising funds without losing control of your business.
Equity or mezzanine: which option to choose?
When it comes to financing a project, there are several alternatives. Among them, equity financing and a mezzanine loan are two options to consider, depending on your objectives and financial situation.
Equity financing
Equity financing involves bringing new investors into the company. This solution provides funds without generating debt, but it entails a dilution of existing shareholders' stake.
Advantages:
✔ No debt or interest to repay
✔ Contribution of skills and a network thanks to new investors
✔ Ideal solution for projects requiring long-term funds
Disadvantages
❌ Capital dilution and partial loss of control
❌ High profitability requirements
❌ Longer, more restrictive process
Mezzanine loans: a flexible alternative
The mezzanine loan is an intermediate form of financing that combines features of bank credit and equity financing. It enables borrowing without the need for heavy collateral and without transferring shares in the company.
Advantages:
✔ Preserves shareholder control
✔ Access to funds without diluting capital
✔ Flexible repayment terms
✔ Ideal solution to complement bank financing
Disadvantages:
❌ Slightly higher cost than a conventional bank loan
❌ Repayment commitment over a defined term
Why Opt for a Mezzanine Loan?
The mezzanine loan is particularly suited to fast-growing companies, real estate investments and business acquisitions. It provides an additional source of financing while retaining a degree of independence.
Situations where a mezzanine loan is advantageous:
- Business expansion without loss of capital
- Real estate financing requiring additional capital
- Acquisition of a company requiring additional funds
Thanks to its flexibility, this type of loan offers an alternative to traditional financing solutions and can be a powerful lever for developing a project without excessive constraints.
Prestaflex: Your Mezzanine Financing Expert
At Prestaflex, we put our expertise to work for you. Thanks to our network of partners and our personalized approach, we can offer you financing solutions tailored to your needs, with the best terms and conditions on the market.
Why put your trust in Prestaflex?
✅ Tailor-made support for every customer
✅ Extensive mezzanine financing expertise in Switzerland
✅ Flexible solutions optimized to your situation
✅ A fast, transparent process with no hidden costs
Do you have a project to finance? Contact us today to discuss your needs and find out how Prestaflex can help you secure the ideal mezzanine loan.
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