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.
Visit http://www.equitiesfirst.com/ for more information.