By using mezzanine capital medium-sized companies can increase their equity capital quota and thus improve their rating and creditworthiness, and, because of a position of greater strength, face increasingly harsher market conditions.

The nature of equity capital emanates from the fact that the mezzanine capital participates in the entrepreneurial success that is achieved, in the same way as equity capital, and so is available to the company in the longer term; it also participates in the profit and loss and is endowed with a subsidiary ranking.

The dividend payments from the mezzanine capital are classified as expenditure from the standpoint of tax. Thus they can be deducted from the operating profit with the effect of a tax reduction.