A key aspect to a business project’s success or for your business to see growth is raising the right type of capital.
Whether you’re looking to fund acquisitions, facilitate a restructure or access short-term working capital, identifying the right source of funding for your business is crucial.
Equity, debt or mezzanine?
There are mainly three types of financing: equity, debt or mezzanine. Equity relates to the long term risk capital provided in return for a stake in the ownership of the company. Debt relates to capital provided to your business on which you will need to make interest payments. Finally, mezzanine is a hybrid of the two, giving the lender the ability to convert to an equity interest in the company in case of default.
How can we help?
Our relationships with equity, debt and mezzanine funders – combined with our knowledge on how to structure a proposal, assists clients in seeking and obtaining the right kind of funding for their business.
To hear more about raising finance, feel free to get in touch with Mark Tuckwell, Will Lodder or Shaf Bheda on 01788 539000 or email [email protected].
Check out more of our blog articles here: www.magma.co.uk/blog.