Mezzanine finance is a term for hybrid forms of finance. It has features of both debt and equity. Mezzanine finance instruments have been gaining in importance but remain little used compared to classic loan financing. The significance of mezzanine financing becomes more important when it comes to Small and medium size enterprises - SMEs, which are the backbone of the European economy. SMEs often do not meet the criteria to obtain mezzanine finance or they do not have access to it. However, the problem is up-to-date. This paper focuses on definition, purpose and use of mezzanine finance in European region. In detail this article analyses the application of mezzanine finance for different classes of SMEs. Finally, it points out the significance and role of mezzanine finance and compares its advantages and possible disadvantages.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.