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/