Business

Are you looking for Mezzanine debt finance for your property development?

Published

4 years ago

April 20, 2021

Getting funding for an upcoming project is never an easy ordeal. Property developers and builders have to work hard to secure funding for their upcoming projects, especially during these unprecedented times of Covid-19. Obtaining funding is especially hard for small developers and builders as the market is dominated by high-end developers and big-time builders. Of course, factors such as the rising cost of land and the strict lending criteria do not make it any easier for small developers and builders to secure financing. If you are looking for Mezzanine debt finance for your property development, here is everything that you need to know.

What is Mezzanine debt finance?

First, let’s talk about Mezzanine debt finance. When a builder or a development company has fully utilised their debt borrowing capacity or looking to preserve their senior debt for the future, the builder or developer will need to look for an additional source of capital. This capital could be used for growth opportunities such as starting new projects or taking over ongoing projects and distributing among shareholders, and in some cases, buying back shares from shareholders. This is when developers need to start raising finance for property development.

Equity vs Mezzanine debt finance

Now, there are two options. One option is to raise more equity, which means that the builder or developer has to further dilute their share in order to get funding. The second, and more viable option, is Mezzanine financing. Mezzanine debt is used to bridge the gap between equity financing and debt. In simpler terms, think of Mezzanine financing as a more expensive form of debt or a cheaper form of equity. Since it is a more affordable form of equity, the interest rate is higher while the overall cost of capital is lower. Mezzanine debt financing allows a developer to get the highest return on investment while putting in the least amount of capital.

Let’s say a high-end builder wants to take over an ongoing project that has £20 million in debt, but the builder does not want to put up their capital. So, the builder will look for Mezzanine financing to cover around £15 million while the builder will only have to invest £5 million from their capital. Since the builder used Mezzanine debt financing, it will be possible to convert the debt into equity only once certain criteria are met. However, this allows the builder to reduce the amount of capital required to complete the transaction and eventually allows the debt to convert into profitable equity.

Tools for Mezzanine debt finance

For builders and developers who are looking for Mezzanine debt financing, technology is a great boon! Now, there are so many online tools that have made the process of securing funding so much easier. Sqft.Capital is one such company that works as an online finance raising tool for property developers and provides mezzanine debt for property developers! Sqft.Capital is a platform that has been created for UK property developers to model their deals, raise debt and equity, secure funding and optimise profits seamlessly.

The average debt raise request for Sqft.Capital is £2,945,179, while the average mezz raise request is £1,088,745. The average equity raise request is £688,211, and the average GDV projects that this company raises funding on is £4,640,130. This platform allows builders and developers to use free tools to model a financial projection and then puts all the data together to make it look presentable for lenders. Once the model is ready, Sqft.Capital finds the best financing options for the upcoming project, which either have the highest profit or require the least amount of equity.

Why choose Mezzanine debt finance?

One important reason that developers should opt for Mezzanine debt financing is that it allows them to increase their internal rate of return. Also, since the developers do not have to give up equity, they have complete control over their projects and businesses. Usually, when developers get more equity partners on boards, things can get messy. Additionally, the main chunk of mezzanine finance is payable as an exit fee when the loan is redeemed, which means most of the cost is a charge on profits.

Business

Scaling Success: Why Smart Habits Beat Growth Hacks in Modern eCommerce

Published

1 month ago

July 26, 2025

Matthew Wiles

There’s a romanticized image of the eCommerce founder: a daring risk-taker chasing the next big idea, fueled by late-night caffeine and last-minute inspiration. But the reality behind scaled, sustainable brands tells a different story. Success in digital commerce doesn’t come from chaos or clever hacks. It comes from habits. Repetitive, structured, often unglamorous habits.

Change, a digital platform created by eCommerce strategist Ryan, builds its entire philosophy around this truth. Through education, mentorship, and infrastructure, Change helps founders shift from scrambling for quick wins to building strong systems that grow with them. The company doesn’t just offer software. It provides the foundation for digital trade, particularly for those in the B2B space.

The Habits That Build Momentum

At the heart of Change’s philosophy are five core habits Ryan considers non-negotiable. These aren’t buzzwords; they’re the foundation of sustainable growth.

First, obsess over data. Successful founders replace guesswork with metrics. They don’t rely on gut feelings. They measure performance and iterate.

Second, know your customer deeply. Not just what they buy, but why they buy. The most resilient brands build emotional loyalty, not just transactional volume.

Third, test fast. Algorithms shift. Consumer behavior changes. High-performing teams don’t resist this; they test weekly, sometimes daily, and adapt.

Fourth, manage time like a CEO. Every decision has a cost. Prioritizing high-impact actions isn’t optional; it’s survival.

Fifth, stay connected to mentorship and learning. The digital market moves quickly. The remaining founders are the ones who keep learning, never assuming they know it all.

Turning Habits into Infrastructure

What begins as personal discipline must eventually evolve into a team structure. Change teaches founders how to scale their systems, not just their sales.

Tools are essential for starting, think Notion for documentation, Asana for project management, Mixpanel or PostHog for analytics, and Loom for async communication. But tools alone don’t create momentum.

Teams need Monday metric check-ins, weekly test cycles, customer insight reviews, just to name a few. Founders set the tone by modeling behavior. It’s the rituals that matter, then, they turn it into company culture.

Ryan puts it simply: “We’re not just building tools; we’re building infrastructure for digital trade.”

Avoiding the Common Traps

Even with structure, the path isn’t always smooth. Some founders over-focus on short-term results, chasing vanity metrics or shiny tactics that feel productive but don’t move the needle.

Others fall into micromanagement, drowning in dashboards instead of building intuition. Discipline should sharpen clarity, not create rigidity. Flexibility is part of the process. Knowing when to pivot is just as important as knowing when to persist.

Scaling Through Self-Replication

In the end, eCommerce scale isn’t just about growing a business. It’s about repeating successful systems at every level. When founders internalize high-performance habits, they turn them into processes, then culture, then legacy.

Growth doesn’t require more motivation. It requires more precision. More consistency. Your calendar, not your to-do list, is your business plan.

In a space dominated by noise and novelty, Change and its founder are quietly reshaping the conversation. They aren’t chasing trends but building resilience, one habit at a time.