- Flexible financing: Mezzanine finance is a flexible financing option that allows business to customize the terms of the financing to suit their specific needs. This can be especially beneficial for businesses that have unique financing requirements.
- No collateral required: Unlike traditional debt financing, mezzanine financing does not require collateral. This can be an advantage for business that do not have significant assets to use as collateral.
- Access to additional funding: Mezzanine financing can provide businesses with access to additional funding that may not be available through traditional financing sources.
- Can be structured to reduce dilution: Mezzanine financing can be structured to reduce the dilution of equity ownership. This can be beneficial for businesses that want to maintain a larger percentage of ownership.
- Higher interest rates: Mezzanine financing typically has higher interest rates than traditional debt financing. This can result in higher financing costs for the business.
- Dilution of ownership: Mezzanine financing involves the issuance of equity or equity-like instruments, which can lead to dilution of ownership for existing shareholders.
- Complexity: Mezzanine financing can be complex, and the terms of the financing can be difficult to understand. This can make it challenging for businesses to fully understand the financing they are receiving.
- Limited options: Mezzanine financing is not widely available, and the number of lenders offering this type of financing is limited. This can make it difficult for businesses to find a suitable lender.
Mezzanine finance is available in Malaysia. It is offered by various financial institutions such as banks, investment banks, and private equity firms. The Malaysian government also offers mezzanine financing options for small and medium-sized enterprises (SMEs) through agencies like SME Corporation Malaysia and the Malaysian Technology Development Corporation (MTDC). Mezzanine financing is becoming increasingly popular in Malaysia as a way for businesses to access flexible and customized financing solutions that bridge the gap between traditional debt and equity financing. If you are interested in mezzanine financing for your business in Malaysia, it is recommended to consult with a financial advisor or attorney to explore your options and determine the best fit for your specific needs
Conclusion
About Limra Assets
Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.
If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.
Disclaimer:
It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.