Equities First Holdings is a worldwide leader that leads in alternate shareholder financing options is experiencing an increase in stock-based and margin loans. This is majorly due to the banks and other institutions involved in the lending of money tightening their lending criteria. Equities First lending is fast becoming popular especially among borrowers who need capital fast or those who cannot qualify for substantial conventional loans. As much as there are other options available for such individuals, of late most banks have cut the lending options available for borrowers, increased their interest rates and tightened the loan qualifications.
These two types of loans are different in that a borrower ought to be pre-qualified for a margin loan and the money should be used in a specific way. The loan-to-value ratios range from 10% – 50% and the lending firm can liquidate a borrower’s collateral without any form of warning in a margin call. Stock-based loans have an interest rate of between 3-4%. Loan-to-value ratios from 50-75% and money can be used for various purposes. These loans are non-recourse therefore borrowers are able to walk away without obligations.
About Equities First Holdings, LLC
It was founded in 2002 and provides clients with capital against stock that is publicly traded and alternative financing way out to help them achieve their professional and personal goals. It provides capital against public exchanges shares all over the world. EFH has so far completed over 650 transactions worth over $1.4 billion. It is a global company that is present in nine countries and subsidiaries that are fully owned in London, Hong Kong, Singapore and Australia. They are denoted for example as Equities First (London) Limited.
The founder and CEO of EFH, Al Christy, Jr., view the stocks-collateralized loans as an innovative alternative for borrowers looking for working capital. The stock-based loans have a high loan-to-value ratio than the margin loans and are offered at a fixed interest rate. This provides certainty in the life of the transaction. Christy notes that in a loan term of three years, fluctuation in the market is inevitable but the stock-based loan will offer a hedge as the borrower risks their investment in a market that is downside.
For more information please contact by http://www.equitiesfirst.com/contact