Mezzanine finance is a subordinated and hybrid form of debt useful for large projects. It offers property developers quick cash to bridge the funding gap between a senior loan and equity. The gap emerges from the capped Loan to Value Ratio (LVR) on traditional financing options.
Mezzanine financing can also be used when the project’s perceived risk is high and you can’t raise enough capital through traditional options to complete your project.
You can secure between 65% and in some cases up to 90% of your project’s Total Development Cost (TDC) using a mezzanine loan. The balance amount is required to be brought by the borrower as equity. In addition to equity, you will also need to mitigate the project’s risk.
To reduce the perceived risk of your project, can show:
A mezzanine loan is often compared with a bridging loan since both types of loans offer quick access to cash. However, they differ in terms of tenure.
A bridging loan isn’t the most appropriate choice for property developers because of their short tenure. Mezzanine loans have a considerably longer tenure of up to 18 months, rather than a short 3 month term.
You want to reach a goal, and we want to help you get there by helping you with your funding requirements.
We understand the quicker the development project is completed, the quicker the assets can be sold and your profit realised and the loan to be repaid
Lightspeed is a specialist when assisting in tailoring a loan to ensure your development is fully funded Throughout the building process, or provide funds so the project can move to the next stage of construction.
When you choose us as your mezzanine finance provider, you will benefit from:
If you’re looking for mezzanine financing In Australia, let us help you navigate through the process. Operating in all major cities of Australia and in many cases regional areas as well.
Lightspeed is a leading provider of development and construction finance throughout Australia and should be considered when looking at funding decisions.
