capital

The word quasi-capital means a series of financing methods the characteristics of which are between long-term credit and participation in the capital, which won it the colourful nickname "mezzanine financing".
They are also called "junior debts":
- the mezzanine financing keeps of the loan the limited term inscribed in the contract and the at least partly guaranteed yield;
- of the capital, they adopt the uncertainty of repayment ; these loans are indeed "subordinated" which means that in case of bankruptcy, they will be repaid only after discharge of the other debts of the company.
The subordination of the debt increases the risk incurred by the financing establishment that will demand a higher yield than within the framework of a traditional loan. The cost for the enterprise is hence more important, but is compensated by:
- the greater credibility in the banks, reassured by the presence of a recognised external investor;
- the capacity to borrow more, as upon the analysis of the indebtedness, quasi-capital is considered as capital and not as a loan.