Equities First Holdings, LLC, a global leader, and lender in alternative shareholder financing solutions have been observing more haulage in stock-based and margin loans in an economic climate where the finance lending banks have tightened lending principles. Equities First are therefore gaining popularities and thriving as an alternative for borrowers who do not qualify for conventional credit-based loans and hence requires raising more capital quickly.
Recently many lending banks have tightened loan qualifications, slashed their lending options and also increased the interest rates. The founder and the CEO of EFH, Al Christy distinguishes loans guaranteed by stock as an innovative borrowing alternative for people looking for capital. Generally, stock-based loans have a higher loan-to-value ratio compared to margin loans and a fixed interest rate thus providing certainty through the transaction period.
Christy further explains that market fluctuation is an inevitable, but then a stock-based loan provides a hedge since the borrower is lowering their investment risks in the market. The borrower can keep the original loan with no further liabilities to the lender since stock-based loans have a feature that allows the borrower to stay put from stock loan even when value depreciates.
For margin loans, the borrower is required to be pre-qualified with a conventional bank loan. The interest percentages and the value-to-loan ratio can range between 10-50 percent. Furthermore, the bank may liquidate the borrower’s guarantee without notifications.
For stock loans, the borrower expects a fixed interest rate of 3 or 4 percent and a value-to-loan ratio of between 50 and 75 percent.
Equities provide practical solutions to and high-net-worth individual that require non-purpose capitals since 2002. The firm was established by Al Christy who serves as the CEO. The firm has continued providing finance solution alternatives and supplying capitals publically traded stock.
EFH has also completed more than 650 transactions, offering clients high loans to values at low fixed interest rates. The organization has continued to thrive in finance lending field.
For more visit http://www.equitiesfirst.com/