Equities First Holdings and the Rise of Stock-Based LoansPosted on October 10, 2016
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/