: It "stretches" the total available capital beyond what a senior lender will provide based on their standard risk limits.
: These loans are usually 2nd lien or subordinated, meaning the primary bank is paid back first in the event of a default. Common Uses : company loan
: A high-risk structure where interest is paid with additional debt "pieces" (securities) rather than cash. : It "stretches" the total available capital beyond
: Acquiring specific machinery or real estate when a standard loan doesn't cover the full cost. Alternative Contexts company loan
: Funding new projects or acquisitions that exceed current credit lines.