Since its inception in 2002, Equities First Holdings has grown into one of the leading providers of alternative financing solutions. In fact, the company has been supplying capital against stock to allow customers to meet both their professional and personal goals. Currently, Equities First Holdings has closed over 650 deals, which are worth over $1.4 billion. Additionally, it boasts of a global presence, which includes offices in Bangkok, Hong Kong, Sydney, London, South Africa, United States, Perth and Sydney.
Equities First Holdings has proven to be a dominant entity in the provision of alternative shareholder financing solutions. The company has witnessed increased traction in stock-based and margin loans, especially at a time when banks and other financial institutions have introduced more stringent lending criteria.
Stock-based loans are loans that are collateralized by public-traded stocks. Al Christy, the CEO and founder of Equities First Holdings, views stock-based loans as an ideal alternative for borrowers in dire need of working capital. In fact, the loans are suitable for borrowers who require raising quick capital or those who are ineligible for additional conventional credit-based loans. Equities First Holdings offers stock loans for a fixed duration, which is usually three years.
The Advantages of Stock-Based Loans
Unlike margin loans, stock-based loans usually have a higher loan-to-value ratio. They are also accompanied by a fixed interest ratio, which gives them certainty throughout the entire transaction. Even though market fluctuation is inevitable, loans that are collateralized by stocks offer a hedge since the borrower is reducing his or her investment risk in a downside market and learn more about Equities First.
Stock-based loans are accompanied by a non-recourse feature, which enables borrowers to disengage their lending abilities at any given point. This is possible even when the value of stocks depreciates. As such, a borrower can retain the proceeds from the initial loan without being indebted to the lender and resume of this company.
Stock-based loans are not accompanied by restrictions, which means they can be used to meet whatever purpose. This is why Equities First Holdings operates under the slogan: We Do One Thing So You Can Do Anything. For this reason, a borrower can invest the money for personal reasons and business expansion and read full article.