Mezzanine Funding
Mezzanine finance is provided by individuals or organisations that are looking to help you find the missing funds needed to complete the development – in short - the funding element that the banks won't lend you. In return of course, the mezzanine funders will charge an above average rate for their funds (as their risk is higher).
Some mezzanine funders insist the developer contributes financially to the development others are happy to take all of the risk over and above the senior debt provider (essentially providing you with a 100% funding solution).
So, in the majority of cases, there are two forms of mezzanine finance: -