A mezzanine loan works in a manner in which stocks in the business are traded for financing. This type of loan is especially useful for a leveraged buyout, as it can be used in order to generate growth capital. Mezzanine loans are popular among established business owners looking to expand their company.

Vertical integration is the term for when a company buys out their manufacturer or other aspect of the distribution chain. So why would a business owner introduce vertical integration into their business plan?