Mezzanine finance can fill a funding gap in a larger acquisition, buyout or growth transaction. It is a specialist arrangement that sits behind senior debt and can include rights linked to ownership.
How it works
A mezzanine funder accepts a lower repayment priority than the senior lender, usually in exchange for a higher return. Payments may include cash interest, interest added to the balance and an equity-related element such as warrants. The exact structure is negotiated.
What to consider
- Understand the repayment order and how the senior and mezzanine lenders work together.
- Interest added to the balance can create a substantial amount due at exit.
- Equity rights may dilute the owners or affect control.
- Consider refinancing and exit risks if expected growth or a sale does not occur.
What to prepare
A transaction plan, valuation, funding structure, detailed forecasts and clear repayment or exit assumptions. Specialist legal and corporate-finance advice is normally essential.
This is unlikely to be the first route for a routine small-business cash requirement. It is included here to explain an option that may arise during a more substantial ownership or growth project.
How Greystone can help
We can help you understand the figures and consider the effect on your business and the family behind it. Where detailed forecasts, calculations or application support are needed, we will agree the scope and any fee with you first.
Explore your next step
Start an enquiry with Swoop, or contact Greystone for a free initial conversation.
The portal opens on Swoop’s website. Swoop can confirm available products and the appropriate specialist route. An enquiry is not a funding offer.
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Prepared by Greystone Advisory using Swoop product information; reviewed October 2026. General information, not a personal recommendation. Greystone is not a lender. Funding is subject to eligibility, assessment and terms. We may receive commission from Swoop following completed funding. Specialist legal, tax or regulated advice may be needed for your circumstances.
