Mezzanine financing, also called subordinated or quasi-equity
financing, combines features of both loan and equity financing. This
financial instrument falls between senior debt and the equity in a
company’s financing structure.
Mezzanine financing from Desjardins
Venture Capital can be granted through an unsecured loan with
a 3 or 5 year term. Repayment of this loan is exceptionally flexible
since it is linked to the company’s forecasts.
Mezzanine financing has less stringent requirements than venture
capital financing and offers companies a number of advantages:
- Subordinated position to the lender, which can be considered
as equity financing
- Minimal dilution for shareholders
- Lighter tax burden (interest is deductible)
- Exit method is defined beforehand
- Portion of financing costs are linked to the company’s
success
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| More than a
financial partner, Desjardins Venture Capital makes
available its business network and expertise, allowing you
to build on your competitive advantage and establish
yourself as a dominating player in your market. |
As well as
accompanying you in your growth and development, Desjardins
Venture Capital contributes to the development of your
financial independence, with the goal of assuring your
long-term survival. |
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