Every once and a while people get stuck with low or even cash flow, especially companies. Making profit is a major need if you want to be able to go further in development of your firm. That’s why most executives will sometimes reach out for a different source of money, one that is in one hand very popular way of financing, but in other hand it can get you in trouble or better said – debt. Taking a credit loan, be financed by mezzanine to say, is a very big step for everyone and though you think it can be a good option it can get you in every deeper financing problems. Yes, it is a very good feeling when you have a lots of cash at hand for buying the much needed resources for company production, or paying bills and workers’ paycheck, or even if it is just laying around there just in case of some kind of “money emergency”. You must bear in mind that you will have to deal with a mezzanine financing rates from month to month. They can be as large as 3-5% comparing it to your base loan, which is pretty high when you place in a bigger amount of borrowed money. Over time that can really add up quickly and at the end you will be paying a great amount of interest based on that loan. If you can’t pay off the loan back, they will take some other capital property of yours. The point is that you have to be extra careful and calculate your every step before you decide to go in in this kind of financing, because in the end it can get even worse than before you started.