Equities First Holdings LLC is a global leading lender in alternative financing solutions; the company can detect more traction between margin loans and stock-based loans in the current economic condition where lending institutions and banks have regulated their lending criteria. Equities holdings come to the rescue for borrowers who needs capital quickly and do not qualify for more conventional margin based loans hence equities is gaining popularity as an alternative lender.
Lending institutions have tightened loans qualifications, cut down lending options for the borrowers and also increased the interests’ rates. The founder and the chief executive officer of Equities Holding, Al Christy, Jr sees loans guaranteed by stock as innovative substitutes for individuals looking to raise working capital.
Christy explains that during an average three-year loan period, the market is expected to experience fluctuations which are inevitable, but for stock-based loans, a hedge is provided since the borrowers tend to lower their investment risk in a downside of the market. The good side of stock-based is that it has a non-resource feature that enables the borrowers to walk out of stock loan any moment whether or not the stock value depreciates, and so can keep the original loan proceeds with no obligation to the lender.
According to Christy, although both loans use securities as guarantors they have a huge difference. Margin loan requires the borrowers to be pre-qualified and also requires the money to be used for particular purposes. With margin loans, the interests are valuable from time to time, and the loan-to-value ratio can go as far as 50%.
While with stock-based loans the borrowers expects a fixed interest rates with. No restrictions are allowing the borrowers to use the money for whatever purposes. Additionally, stock-based loans are non-resource.
EFH has continued to provide for its clients with alternative financial solutions since 2002. The company offers high loan value to low or fixed interest rates. Also, they provide capital to against shares traded publically.
The lending solution for enterprises and high net worth clients offers their services to nine countries worldwide.