“Mezzanine” Funding by Cash Leveraging
Many clients seeking project financing are able to successfully obtain “first-round” Seed Capital, usually from private investors, sometimes from business revenues of a previous established company.
Seed Capital, however, never seems to be enough to take the project all the way to final full project funding. The company wants to start launching preliminary products or services for partial revenue generation (if possible), hire law firms and other contractors or service providers (if needed), and be able to operate on “base salaries” to give full-time efforts to project financing and business development.
In such cases, the client company needs more than its preliminary Seed Capital. Now it needs “second-round” funding much larger than its current available Seed Capital.
This is what is known as “Mezzanine Funding” – it’s the next step after Seed Capital. While Seed Capital can be difficult to raise, Mezzanine funding is essentially the same, but in a larger amount, and is thus much more difficult to obtain.
The best, most effective, and most reliable way to obtain Mezzanine funding is to use the majority of the Seed Capital already raised or pledged by your investors, to place the liquid “cash” funds into some transaction “program” that will safely generate short term and high-level profits. That can literally “multiply” your current working capital, giving you certainty of receiving the “Mezzanine” level of funding that you need.
There are many popular “investment programs” marketed as “cash leveraging” for Mezzanine funding, but such programs are often “trading” based or otherwise “risk” based. The perfect solution is a program that does not risk the Seed Capital funds as “investment”, but rather directly uses them to obtain solid tangible assets, and then leverages those assets to generate the multiplied profits.