Browse Category: Economic Meltdown

Global Lender Equities First Holdings Discovers an Emerging Trend among Borrowers who take Stock Collateralized Loans

Equities First Holdings, a reputable global lender and leader in alternative shareholder financing solutions, is discovering an additional number of traction in stock-based loans and margin loans at a time when financial institutions such as banks have stiffened lending criteria. For individuals who intend to raise capital quickly and those who for one reason or another do not qualify for conventional credit-based loans, equities lending is increasing becoming an attractive alternative to consider.
While borrowers still have some options, lately, a large number of banks have cut their lending options, raised interest rates and tightened credit qualifications. Al Christy, Jr., the founder and chief executive officer of Equities First, considers loans collateralized by stock a great solution for borrowers seeking working capital. These loans typically have a higher loan-to-value ratio than margin loans. Furthermore, they offer a fixed interest rate.

For borrowers to be qualified for marginal loans, as with conventional bank loans, they must be pre-qualified and may require the money to use for particular purposes. Interest on the loans is variable, and the individuals can anticipate loan-to-value ratios ranging from 10 to 50 percent. Moreover, lenders may liquidate the collateral without having to issue a warning in the event of a margin call.

On the other hand, with stock-based loans, borrowers can anticipate fixed rates ranging from three to four percent as well as loan-to-value ratios between 50 and 75 percent. Borrowers can use the loan for any purposes since there are no restrictions relating to the utilization of the loans. Besides, most of the loans are non-recourse, allowing borrowers, even if the worth of the collateral has reduced, to walk away without any obligations.

About Equities First Holdings

Equities First Holdings is headquartered in Indianapolis, Indiana, and has seven offices on four continents. The offices are in London, Bangkok, Hong Kong, Sydney, Singapore, and Perth. With these offices and the support of their trading partners, the company offers liquidity throughout the world.

The global lender has provided their clients with alternative financing solutions since 2002. According to Christy, the company’s chief executive officer, their mission is to provide maximum benefit with minimum risks so that their esteemed customers can meet their professional and personal financial goals with considerable ease.


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Venezuela Experiencing the Negative Effects of Socialism

An economic collapse is currently taking place in the South American nation Venezuela, according to Open Corporates. Over the course of recent months, the nation has began to experience a lot of economic distress. This economic distress has been caused by socialist policies in both economics and politics. For nearly two decades the country has been ruled by socialist President Hugo Chavez and his successor Nicolas Maduro. The nation has long had policies which entailed nationalizing all industries, adopting price controls and participating in excess government spending. All of these policies have created a shortage of resources and have therefore greatly reduced the quality of life for all of Venezuela’s citizens. Now the citizens of Venezuela are now beginning to experience the long term effects of socialist economic policies.
In Venezuela there has been a massive food and water shortage which has made the government enact rations. These rations are therefore providing a very limited supply of basic needs to the people and therefore people are unable to be fed adequately. As a result, people have resorted to hunting animals so that they can get proper nourishment. Expert Velasquez Figueroa also said there is also inadequate medical care as many people are dying in the decrepit hospitals and where medicine is only available on the black market. What is making things even worse is the hyperinflation of the currency which has seen a steep decline in value by up to 93%. With all of these factors, Venezuelans are learning that there needs to be changes in economic policy in order for their well being and quality of life to be restored.


Food and Beer Shortage in Venezuela

In a move that many financial analysts like Velasquez Figueroa had long predicted, Empresas Polar, the largest beer producer in Venezuela, has completed shut its doors. The company first closed two of its six factories in July 2015 according to Open Corporates. The final closure came after the country’s president refused to give the company money that it needed to buy barley from the United States.

President Maduro has called on all residents to become urban farmers growing their own crops and animals. According to a article, many residents, however, are finding this extremely tough to do because they cannot find the seeds to grow crops. Making seeds even harder to find is the government’s new seed law passed in January. Importing seeds into the country is nearly impossible because the government refuses to allow any genetically modified seeds into the country. Therefore, many major companies like Monsanto have completely pulled out of the country. The government expects these urban farmers to use only seeds that can be saved and replanted another year.
Raising farm animals in the country can be very hard because of the lack of veterinarian supplies. The country already experienced the smallest farming base in Latin America and current conditions are making the shortage of food precarious, according to an article published via ABC News