The use of finance through non-banking sources lead to solvency and liquidity in the long term to maintain an optimal capital structure.
An optimal capital structure represents the ratio of debt and equity in the total capital required for the company's operation, which depends on:
The financial crisis has shown that many companies are under-capitalized and over-indebted. The way out of such a situation is not new borrowing, but recapitalization.
The effects for the company of financing through recapitalization are:
What is the purpose, price, payment and use of the mezzanine?
Mezzanine is a long-term hybrid capital that has characteristics of credit and
investment capital.
The purpose of mezzanine capital can be for various purposes, from buying shares within the same company or financing the purchase/takeover of another company, to refinancing existing liabilities, financing construction investments, etc.
The cost of capital is defined as a fixed interest rate of 5% or a variable interest rate linked to EURIBOR – Euro Inter-bank Offer Rate (for example EUROBOR + 3%).
The payment of mezzanine capital is made after the expiration of the term (6-10 years) or after the sale of the company to a strategic investor, on the stock market or in some other way.
The use of mezzanines in the field of construction as a financial instrument offers services such as:
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SMART FINANCE GROUP Ltd. Skopje, with a registered office at st.Franklin Ruzvelt no.11 Skopje
+389 70 797 783
Monday - Friday 8:00 am to 4:00 pm