Mezzanine or Subordinated Debt Loans are loans
that rely on the cash flow of the company to repay the loan. These loans
are usually unsecured or secured by a junior lien position behind the
primary lender. These loans are an excellent way to finance a company
when there is plenty of cash flow, but not enough collateral. These
loans are usually available in amounts of $1.5 million or more for companies
with more than $10 million in revenues. Interest rates are usually fixed,
and some lenders require the company to issue them a small amount of
equity in addition to paying interest.