Why Equities First Holdings is a Leading Provider of Stock-based Loans

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

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.

Equities First –Stock Loans Are Currently an Easier Way to Acquire Working Capital

The Great Recession led many traditional lenders into going losses and what followed is working on ways of reducing more losses and related risks. That has seen many banks loans getting harder to borrow and expensive to repay, which has left many borrowers without reliable options rather than to depend on alternative lending loans. For instance, stock-loans borrowing has been on the rise with key companies dealing with the services registering an increase of applicants. Equities First is a giant in the sector and its recent records have confirmed a sharp traction of stock-loan borrowers. Despite the dominance of formula that led to risking and losing of trillions of dollars in the early stages of financial crisis, there were documented attempts of within the financial sector happening prior to the crisis, to address the menace of formula limitations, particularly the poor representation of acute events and lacking of dependence dynamics and more information click here.

Nearly every institution underestimated mortgage risks in the chain from originators to investors by underweighting the likelihood of falling housing costs as per the base of historical trends in the past 50 years. Overvaluation of asset-backed and mortgage items and their derivatives by securitizers, originators, investors, insurance underwriters, rating-agencies and broker-dealers were caused by restrictions of default & prepayment models and the core of pricing models. What was witnessed was the boom and collapsing of the shadow banking systems while the securitization markets got impaired during the crisis. This is enough proof that the worst performing and riskiest mortgages were financed via the shadow banking system with the competition of the shadow banking system having pressured many traditional institutions into lowering their underwriting standards that touched on riskier loans. With many modifications that have touched on banks on their fight for associated risks, fewer borrowers are securing traditional loans easily and affordably. Stock loans are turned into a better option for majority of potential investors and Equities First of Linkedin.