Borrowing from Strata Finance
If the bank can’t provide the level of funding you require mezzanine finance could be the solution. We have a database of individuals and companies who have cash surpluses which are currently generating little or no return. They are looking for well thought through property transactions which have passed due diligence for a main lender but the amount sanctioned is insufficent to allow full completion.
Our investors are looking to lend to these projects by taking a formal second charge on the property as security which will sit behind the main lender, charging a higher rate of return. They are not looking to take any form of equity stake in your business.
Register for a free account, log in and provide us with the details of your requirements. We will fully assess the project and if we believe we can support you we will generate your funding scenario which will be your pitch to the potential investors in the Den.
Loans vs. Equity
Loans have two advantages over equity; borrowers do not have to give up ownership of the business and in the long run it is usually cheaper to borrow money than to sell shares. For lenders, a loan gives immediate returns in the interest paid and usually allows a faster exit. In addition the loan has the benefit of formal security by way of second charge that reduces the risk involved.
