are mezzanine loans secured 
mezzanine debts can be secured or unsecured those used in real estate are often indirectly secured to some extent by the borrower s real estate interests it can be said that in corporate mezzanine financing the debt is secured by the borrower s ownership interest in the company but because a mezzanine loan is fairly low down in the repayment schedule this collateral may be of limited value the bottom linemezzanine financing combines debt and equity financing it gives a lender the right to convert debt to an equity interest in a company in case of default generally after venture capital companies and other senior lenders are paid in terms of risk it lies between senior debt and equity 