Mezzanine finance is a type of hybrid funding that sits between senior debt (like a mortgage or development loan) and equity (your own cash or investor funds).

It’s commonly used in property development and business acquisitions when you’ve hit your borrowing limit with traditional lenders but still need more capital to complete the deal.

For example, if you’ve secured a senior loan that covers 70% of the costs, but you don’t want (or can’t afford) to put in the remaining 30% yourself. Mezzanine finance might cover 10–20% more, reducing how much equity you need to inject.