Equities First Holdings, LLC (EFH), one of the largest alternatives for financial solutions, has noticed more investors and firms are taking an interest in the margin and stock-based loans as more lending institutions continue to tighten their borrowing criteria. Al Christy, Jr., the creator, and CEO of EFH comprehends that stock loans are currently the best financing for persons looking for working capital. This is because stock-based loans are characterized by higher loan-to-value ratio than margin loan. Moreover, they have a fixed interest rate thus guaranteeing certainty of the transaction.
Christy continues to add that taking a three-year loan is filled with several market fluctuations that could affect one’s loan; however, the stock-based loans offer a hedge since the borrower is lowering their investment risk in a downside market. Moreover, the stock-based loans are characterized by a non-recourse feature that will ensure even if the stock’s value decreases, the borrower still keeps their initial loan proceeds without any further obligation to the creditor.Christy also points out that many view margin loans and stock-based loans as being similar but they have clear differences. He also goes on to explain that stock-based loans have been ignored in the past as a viable lending option due to some deceitful money lenders. Christy elucidates that Equities First Holdings is transparent and relies on leading regulatory, legal and trading organizations for guidance to ensure it deliver maximum benefits with minimum risks to its clients
About Equities First Holdings
Equities First Limited is a London-based corporation that provides financial solutions to its customers through loans. The firm achieves this by funding the client’s investments using stock as a unique collateral strategy not offered by other banks. The aim of Equities First Holdings is to fill the demand of having alternative sources of capital for individual investors and businesses.Many people can benefit from Equities First Holding. People who want to raise money in the shortest time possible are great beneficiaries since not much documentation is required to qualify for a loan at Equities First. Additionally, the organization will also offer loans to those that are ineligible for other bank loans since they are characterized by fewer restrictions, unlike the conventional banks. Furthermore, they have attractive interest rates desired by many borrowers.
The ongoing financial hardships are forcing banks and other financial institutions to tighten their lending rules. Borrowing non-purpose capital is consequently proving almost impossible. However, one lender is lending non-purpose loans on the best terms possible: Equity First Holdings.
About Equity First Holdings
Equity First Holdings is a UK based lender that sets itself apart by accepting stock as collateral. The company is valued at about $1.4 billion and has registered over 650 major transactions. It works mostly with businesses and high net-worth individuals looking for large loans. It was founded in 2002, and while it initially operated only in the UK it now operates overseas in Singapore, Australia, Hong Kong, and other countries around the world.
How it Works
Borrowers are qualified for a loan from Equity First Holdings as long as they have stock for collateral. The lender evaluates the value of the borrower’s stocks and determines how much money he/she qualifies for. As such, complications associated with factors such as credit score are largely avoided, making the process easy and fast.
The terms for borrowers are also unbelievably friendly. To start with, the interest rate on loans is fixed unlike the case with banks. The rate ranges at about 4 percent, and consistency is guaranteed throughout the recovery period. Additionally, borrowers enjoy a high loan-to-value ratio as high as 75 percent; in contrast, banks and other lenders have a ratio of 10percent-50 percent. What’s more, there is almost no limit to the amount of money you can borrow as long as your stocks can cover it.
A loan from Equity First Holdings is also non-recourse in addition to being non-purposeful. The lender’s business model of holding stocks as security allows the borrower to walk back on the contract at any time. A default will not result in harassment from agents and embarrassing legal actions, but as a result the borrower will lose his/her stocks.
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Equities First Holdings is one of the most prominent companies dealing in the issuance of the fast loan using stocks as the main collateral. Equities First Holdings was founded in 2002 by Al Christy. When it was founded, the company worked to issue loans using stocks for businesses and rich individuals. As time went by, they developed the use of stock-based loans as one of the most innovative ways of securing fast working capital. For the company, nothing thrills them more than working for profit. Therefore, the use of stock-based loans was adopted on a massive scale by the people. For this reason, it decided to enhance its business to other parts of the world.
For Equities First Holdings, they have created a business solution in the world. They have also worked to complete more than 2,000 transactions. For this reason, better business is what makes them better in any issuance. For all those completed transactions by the company, they have issued more than $2 billion as collateral to stocks. For this reason, they will also be engaged in better business capabilities. While those transactions are viewed as an achievement in the industry, the company does not view it as a significant achievement. For this reason, they view them as one of the many ways the company works on a normal business day to work and attain the business development capabilities of the people.
Ac Christy is the Founder of the company. According to him, many people do not note the difference between the use of stock-based loans and the margin loans. According to him, these two loans are very different in all aspects of development. For this reason, margin loans can only be qualified if one states the use of the loan. However, it is not in the best interest of stock-based loans to state the use.
The business of lending money is much more expansive than the average person thinks. Most look at loans from the perspective of mortgages, auto purchases, and personal borrowing. Businesses frequently do need to take out loans in order to finance various endeavors. Global lenders such as Equities First Holdings could prove to be exceptionally helpful to entrepreneurs in need of a fast-cash infusion. Even borrowers in need of personal loans may look towards this lender for a solution. Equities First Holdings specializes in facilitating dynamic loans to those who otherwise would be struggling with difficulties to attain an approval.
Market Wired published an interesting article that discusses the factors behind Equities First Holdings’ success. Essentially, the company’s decision to focus on “stock-based loans” proves attractive for all parties.
A common and fair question to be asked here is “Why is there a need for stock-based loans?” The assumption with the question is traditional loans are not difficult to acquire and always come with agreeable terms. Such is positively not the case for scores of potential borrowers.
Financial rules and regulations have changed quite a bit in the aftermath of the 2008 financial meltdown. A credit crisis was part of the problem associated with the fiscal collapse of the markets. Today, borrowing money can prove to be quite difficult due to changes in the law. Alternative borrowing means present the only viable options for those who do need an infusion of lending capital and have been unable to acquire funds from banks and other traditional lending institutions.
The concept behind a stock-based loan is simple. Stock shares act as collateral for the loan. Since the market goes up and down, the loan will equal less than 100% of the value of the stock. $100,000 in Stock may yield a $91,000 loan. Of course, these types of figures will vary based on the circumstances of the borrowers and lenders.
The interest rates on stock-based loans are usually quite reasonable. They definitely do not reach the lofty heights of outrageous interest rates many dubious lending institutions charge. A 3.7% stock-based loan is probably going to be much preferable to an 11% high-risk loan rate.
For 14 years, Equities First Holdings has acted as a reliable and secure source of capital for businesses and high net worth persons. Those interested in more information about stock-based loans should contact the firm for more information.
For more Information please visit http://www.equitiesfirst.com/