Financing » A new alternative: mezzanine financing    


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

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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