Review of Processes and Patterns of Financing through Mezzanine Financing

Nowadays, knowledge about the different financing methods used for the projects by the highly successful companies during the time of both recession and boom are very important. Generally, method of debt and equity financing is the most conventional method of financing for almost every business but it also has some advantages and disadvantages. In this paper, we will discuss new tool of financing instrument. Mezzanine finance- which is type of hybrid financing and its nature is same as debtand equity and has relatively large application in the recent financial crisis. The major advantage of mezzanine finance is lower cost of financing through issuingcommon stock and more flexibility than traditional loans. This study is descriptive survey and introduces and counts the features of mezzanine finance.

کلیدواژه ها:

Financing ، Mezzanine Finance ، Debt ، Equity