Global lender Equities First Holdings, LLC, finds more traction in margin loans and stock-collateralized loans in an economic atmosphere where financial institutions have made it harder to secure loans. For borrowers who want to raise capital quickly or are not qualified for more conventional credit-based loans, equities lending offers them an attractive alternative.
Despite the fact that some options still exist for these borrowers, not long ago, several banks and other financial institutions decreased their lending options, made the process of qualifying for loans more difficult, and increased interest rates. Equities First Holdings founder and CEO Al Christy Jr. sees stock-backed loans as an excellent borrowing option for people looking for working capital. Loans collateralized by stocks do not only have a higher loan-to-value ratio than margin alternatives but also offer a fixed interest rate, guaranteeing certainty all through the duration of the transaction.
As with a conventional loan, the borrower must be prequalified with a margin loan and may require that the loan is put to a particular use. The borrowers should expect to work with a variable interest rate and loan-to-value ratios between 10 to 50 percent. Moreover, the lending company may liquidate the collateral, in the event of a margin call, without giving notice.
With stock-backed loans, however, borrowers can anticipate a fixed interest rate ranging from three and four percent. These individuals can also expect loan-to-value ratios between 50 to 75 percent and no restrictions on the loan so that the loan can be put to any use. Besides, since most stock-based loans are non-recourse, borrowers are free to walk away at any time without any obligations.
About Equities First Holdings
Al Christy Jr. founded Equities First Holding is 2002. Since then, the company has grown from a local to an international firm. The Indianapolis-based firm has offices in seven countries, including London, Perth, Singapore, Sydney, Bangkok, and Hong Kong.
Equities First Holdings is a full-service, non-purpose lender that specializes in providing securities based services. The company offers loans depending on their assessment of risk and future performance associated with the treasuries, bonds, and stocks. Through Equities Firsts’ straightforward process, clients can gain fast access to liquidity at quite affordable rates.