"This form of financing offers a number of advantages," says Ulrich Schöttle, executive veep and CFO of Magirus AG. "The fact that this capitalisation measure reinforces the business equity capital of the company leads to a clear improvement in the balance sheet structure, credit standing, and rating. A welcome side-effect of the improved 'key figures' that we expect is a reduction in the remaining costs of credit. Furthermore, no collateral needs to be provided for this type of financing, which means the collateral remains available for other forms of financing and expands entrepreneurial freedom. Other advantages are the tax-deductible nature of the financing costs as well as the favorable terms in comparison with earlier financing options of this type." ®