What are Unsecured & Sub-Debt Loans?
Alternative Debt
Mezzanine Financing or subordinated debt sits behind senior debt in repayment priority. Higher risk means higher interest rates.
| Typical Amount | $250,000 - $20,000,000 |
| Cost | Prime + 4% to 8% |
| Funding Timeline | |
| Best For | Growth companies, Acquisitions, Leveraged buyouts, Capital-light businesses |
How It Works
Mezzanine Financing, or subordinated debt, offers a unique funding option that sits behind senior debt in repayment priority during liquidation or bankruptcy. Due to its lower claim on assets, it carries higher risk, requiring lenders to charge relatively higher interest rates.
Key Features & Benefits
Loan amounts from $250K to $20MM
Terms span 12-60 months
Lends at 1-5 times EBITDA
Interest: Prime + 4% to 8%
Options or warrants may apply
Available in the USA only
Rates & Terms
| min Amount | $250,000 |
| max Amount | $20,000,000 |
| term Length | 12-60 months |
| based On | 1-5x EBITDA |
| interest Rate | Prime + 4% to 8% |
| closing Time | 30-45 business days |
