Flourish Capital provides a wide range of Bridging and Mezzanine Finance facilities for a wide variety of development projects throughout the UK.
The key attraction of Mezzanine Finance, is that it provides you with bespoke finance way above the level of funding offered by mainstream senior debt providers. Whereas Equity Finance is true ‘risk money’, Mezzanine Finance is secured via a second legal charge over the asset which is being financed. This way it attracts a considerably higher rate of interest than mainstream senior debt.
Put simply, with Mezzanine Finance, the terms and rates charged vary depending on the risk profile of the development scheme.
Where Mezzanine Finance really comes into its own however, is that it reduces the equity you need to invest as a developer, which in turn enhances the return on the capital you employ. The result? The reduced investment in any one project allows you to take on a greater number of schemes that would otherwise be possible.