Subordinated Debt Financing : What Is It, and Why Is It Important? - Small Business Real Estate Financing Video Loan Tips

Subordinated Debt Financing : What Is It, and Why Is It Important?


Subordinated Debt Financing is a powerful resource for lenders, brokers, and businesses. Although it might sound complicated at first, the definition of subordinated debt is simple. Subordinated funds exist on the “second position” of your balance sheet, while senior financing is at the first position. The main difference in senior debt vs subordinated debt is the order of which the financing is repaid. Senior lenders are paid first, while subordinated lenders are paid after the senior lender. Learn everything you need to know about subordinated debt, including what it is, how it works, and the benefits of using subordinated funds in your business. Want to explore business financing options for your business? Apply to Discover more