Why choose mezzanine finance from the Scottish Loan Fund?
Whether it be an alternative to bank funding, or to other forms of finance, SMEs across Scotland and from a variety of sectors have been benefitting from tailored Scottish Loan Fund packages since 2011.
Management retain full operational and equity control of their company as the SLF will not take a direct equity stake in the business. The SLF provides a number of additional benefits for ambitious SMEs, including the full support of Maven’s skilled investment and portfolio teams, who have huge experience of working with and helping to build successful SMEs.
Funding from the SLF comes in the form of a secured mezzanine loan, which operates in a similar way to a bank term loan but ranks behind the bank from a security perspective. A mezzanine loan provides the flexible form of funding needed to help deliver growth, and can work alongside any existing debt and/or equity currently in the business. SLF funding can be used for a wide variety of purposes; for example to support investment in new product development, or bolster working capital and capital expenditure investment in new plant and machinery.
SLF loans can also be repaid over a term of three to seven years, with capital repayment holidays available to help provide additional cash flow headroom if required.