What is a Mezzanine Loan

Mezzanine loan bridges the gap between debt and equity financing and is one of the highest-risk forms of debt—being subordinate to pure debt but senior to pure equity.

MEZZANINE LOAN RISK WARNING:

  • You could lose all your money investing in these products as these are the highest-risk forms of debt.

  • We only do second charge mezzanine loans if Kuflink has the 1st charge.
  • This product is not available to Everyday investors

Order of Priority

Order of Priority, when capital and interest are repaid. 

Whilst the whole loan is secured by way of a 1st or 2nd legal Charge over the security property, the charges are ordered by priority. Lenders who have lent funds in 1st charge will be paid first on any capital and interest repayment, then 2nd charge, then 3rd charge, and then 4th charge. When Lending Mezzanine Loans, you and all lenders in all the Mezzanine Loans of the security charge are accepting the order of priority when you invest.