Equities First Holdings LLC is seeing added traction in stock-based loans as well as margin loans as other banks have tightened lending benchmark. EFH is a global lender. It is also a leader when it comes to alternative shareholder financing solutions. Equities lending is becoming popular as an option for borrowers that do not qualify for conservative credit based loans and those in need of quick capital.
Despite of many alternatives still existing for such individuals, many banks have recently reduced their lending options. They have also tightened loan qualifications for borrowers and raised interest rates. Bloomberg mentions that Equities First Holdings founder and CEO Al Christy, Jr, views loans collateralize by stocks as a creative borrowing option for people looking for working capital. They have a loan-to-value ratio that is higher compared to margin loans. The stock based loans also provide a fixed interest rate. That provides certainty in the entire span of the transaction.
Stock-based loans and margin loans are considered by some to be synonymous. According to Christy, as much as they both use securities for collateral, they are not the same. Just as the conventional bank loan, a borrower has to be pre-qualified when it comes to the margin loan. Additionally, it may require the funds to be used for a particular purpose. Interest rates are changeable with a loan-to-value ratios starting at 10 to 50 percent. In case of a margin call, the lending company may liquidate the collateral of the borrower without any warning.
For stock-based loans, they come with a fixed interest rate ranging from three to four percent. The loan-to-value range is from 50% to 75%. The money can be put into any use. Additionally, even if the stock has fallen, borrowers leave without obligation.
Christy notes that any financial transaction comes with some risk. Historically, stick-based loans have been ignored as a feasible borrowing alternative because of the practices of unscrupulous lenders. EFH has developed its business on the code of transparency and integrity. The firm relies on leading trading, regulatory, and legal institutions for counsel. Its mission is to deliver utmost benefit so that its clients can meet their financial objectives.
About Equity First Holdings LLC
Equity First Holdings is a financial company that offers efficient solutions to high net-worth individuals and businesses that are looking for non-purpose capital. The company focuses on a product created to effectively supply liquidity. That is at attractive terms via a transparent and secure process.
EFH’s unique approach as well as its distinctive funding method offers many of its customers with capital at a lower cost. It also provides better financing terms unlike traditional financing alternatives. Starting in 2002, EFH has completed over 650 transactions. Presently, it has subsidiaries in London, Hong Kong, Australia, and Singapore with offices in nine countries.
Visit their website to learn more about the services offered at Equities First Holdings.