Equities First Holdings is a worldwide lender and a pioneer in option shareholder financing solutions. The company is witnessing more traction in stock-based & margin loans within a monetary atmosphere where banks and different organizations have fixed loaning criteria. For borrowers who need to raise capital rapidly or who may not fit the bill for more ordinary credit-based advances, equities loaning is getting more popular as an option.
While a few choices still exist for these people, as of late, many banks have cut their loaning alternatives for borrowers, fixed advance capabilities, and expanded interest costs. Al Christy, Jr., the founder & CEO of Equities First Holdings, sees credits collateralized by stocks as an inventive borrowing option for people looking for working capital. Stock-based credits ordinarily have a greater loan to value proportion as compared to margin advances and offer a settled loan cost, giving sureness for the duration that the transaction takes place.
“Amid an ordinary three-year advance term, fluctuation of market is unavoidable, however stock-based credits give a hedge in light of the fact that the borrower is bringing down his or her risks of investments into a downside market,” said Christy. “Many of the stock-based advances entail a non-resource feature that permits borrowers to leave their stock loans anytime, regardless of the possibility that the stock’s value may deteriorate. The borrower can keep the underlying credit procedures with no further commitment to the bank.”
As Christy noted, some take margin credits & stock-based advances to be synonymous. Albeit, both types of financing use securities for guarantee, there are checked contrasts. With an edge advance, the borrower must be pre-qualified, as with a routine bank credit, and may require the cash to be utilized for a particular reason. The financing costs are variable and the borrower can anticipate the loan to value proportions of between 10 and 50 percent. More so, the loaning organization can liquidate the borrower’s security without notice in case of a margin call.
Equities First Holdings provides alternative shareholder financing solutions to customers. The current economic environment is worrying, and banks and other financial firms are tightening their lending requirements. Such are the concerns that Equities First has seen more so in the margin loans and stock-based loans; hence, its decision to offer alternative financing options. They serve borrowers who want loans but cannot access them through the traditional credit facilities.
Why Choose Equities First
In recent times, many financial institutions have reduced their lending options and made the loan application criteria unbearable. However, in the wake of all this, Equities First has seen the gap and is now offering alternative lending solutions to the masses.
Consider a loan with a three-year term; it must succumb to market fluctuations. Nonetheless, the stock-based loans provide a shelter because the borrower can reduce their investment risk in the market. Most of the stock-based loans have a non-recourse element that enables a borrower to abandon a stock loan regardless of a drop in its value. They can keep the initial proceeds from the loan free from and lender obligations.
All types of financial transactions bear some risks; however, many people have for a long time ignored the stock-based loans and a good option to borrowing. Such could be because some unscrupulous individuals have abandoned the borrower’s collateral in an open industry and refused to return stocks once the transaction matures.
Thankfully, the case is different with Equities First; the firm operates on high-level business ethics and transparency. The company seeks adequate advice from credible regulatory, trading and legal institutions with the aim of providing value-added services with lower risks for all clients.
More Information on Equities First
Equities First is a renowned company that offers clients alternative financing options since its establishment in 2002. Additionally, the firm supplies capital against the publicly traded stock to enable customers to meet their professional and individual needs. Equities First Holdings also offers capital against shares that trade on public exchanges around the world. Up to now, the company has completed more than 650 transactions to a tune of $ 1.4 billion to give customers value-added advantage. The firm has an international network and has offices in nine countries. Equities First subsidiary offices are based in Hong Kong, Singapore, and London.
Equities First Holdings is one of the international lenders and also a leader in the alternative shareholder financing solutions. Just recently, the company announced that it had observed more transaction in stock-based loans and margin loans in the economic environment where the banks and all other institutions have chosen to tighten their lending criteria. If you are a lender who needs to increase capital fast or maybe you are not qualified for the conventional credit based loan, the equities are now becoming the best alternative.
Although several options exist for these clients, most of the banks have decided to cut the lending options to the borrowers, increased the interest rates and tightened the loan qualifications in the recent past. The CEO and founder of EFH, Al Christy, recently noticed that loans collateralized by stocks to be the best innovative borrowing alternative, especially for people who need working capital. According to the CEO, the stock-based loans have proved to have a better loan to value ratio compared to the rest. These type of loans offer clients fixed interest rates and certainty throughout the transaction life.
With the standard three year term, it is impossible to avoid market fluctuations. The stock loans offer the perfect solution because the lender is usually lowering their investment risk in the downside market. According to Christy, the stock-based loans mostly have a non-recourse feature, and it allows the individuals borrowing to walk away from the loan whenever they want, even in cases where the stock value has depreciated. It is possible for the borrower to keep the first proceeds from the loan without any special obligations to the lender.
Equity First Holdings was founded in the year 2002. Since then, it has worked tirelessly to offer their customers alternative financing solutions. The company also helps supply capital against the publicly traded stock to make sure that the client can meet all their professional and personal goals. The company provides capital against the shares traded on the public and exchanged in different parts of the globe. Since its formation, the institution has completed over six hundred and fifty transactions that are worth almost two billion. The company has changed the lives of many people by offering loans at low fixed interest rates.
For more Information please visit http://www.equitiesfirst.com/