What’s the difference between Senior debt and equity
The facility allows businesses to access finance on a low-interest basis, secured against the company assets. It doesn’t require the business to hand over any share of business equity, which would dilute ownership. This makes these types of loans extremely attractive to businesses.
What’s the difference between Senior debt and subordinated debt
The difference concerns the order in which debts are repaid in the event of company liquidation. Senior debts would be repaid first, and subordinated debt would be repaid after (for example, from the sale of company assets.)
senior debt vs mezzanine debt
So what about senior debt and mezzanine debt? Essentially, mezzanine debt is a mix of investment and loan. Unlike a senior loan, it isn’t collateralised with the business’s assets and thus falls into second place on the priority repayment schedule in the event that the company cannot meet its debts. Mezzanine loans are also extended against business cash flow, rather than assets, and they are offered on the basis of different criteria, such as the business’s opportunities for growth and the experience of its management team.
Speak to one of our brokers today!
Whether you are considering different types of debt or wondering whether senior debt vs equity is right for you, our team of expert brokers are here to help you to make an informed decision.
We only need a few minutes to gather your information for our expert panel of trusted lenders to review. As senior debt is a specialist business product it generally isn’t available from high street lenders. We provide access to respected lenders and can secure better rates than are available on the open market – returning you a tailored illustration of offers within the hour.
Please get in touch with us from Monday to Sunday, 9 am till 9 pm, on +44 (0) 20 3889 4403 and one of our agents will be pleased to find out more about your needs and to begin the process of finding you the best possible finance to meet your business goals. We are expert brokers in development and investment finance and work with our clients on a long-term basis, helping them to secure the best financial facilities throughout the growth and success of their businesses and projects.