MEZZANINE DEBT: BENEFITS OR DRAWBACKS FOR FIRM’S FINANCING?

Laura Giurca Vasilescu

Revista Tinerilor Economisti (The Young Economists Journal), 2009, vol. 1, issue 12, 14-21

Abstract: Mezzanine finance is an alternative source of finance to debt and equity and it can be helpful in financing the start-up and firms’ expansion. But in order to take their investment decisions, the firms should compare the benefits and challenges generated by this form of financing in function of their development stage or the specific features of their activities. Despite the fact that mezzanine finance instruments are gaining in importance, and the advantages overtake the disadvantages, they still remain little used compared with traditional forms of financing (loan financing).

Keywords: mezzanine debt; financing; firm; benefits; disadvantages (search for similar items in EconPapers)
JEL-codes: G32 M21 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2009:i:12:p:14-21

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