Equities First Holdings Is a Global Lender That Sees an Increasing Trend of Borrowers Who Use Stocks As Collateral to Secure Working Capital

Equities First Holdings is a world lender and leader in offering optional shareholder financing solutions. The company is registering an expanded traction in stock-based and margin loans in an economic environment where traditional financial institutions have tightened their lending criteria. Thus, equities borrowing is getting more popular for investors seeking to raise working capital easily or even who may not meet the minimum requirements with conventional credit-based loans.

Despite having some alternatives that exist for these kinds of borrowers, over the recent past, most banks are said to have cut their loaning options, increased interest rates and tightened loan qualifications. The founder and CEO of Equities First, Al Christy, Jr. views stock loans as an innovative means of borrowing for potential investors who seek for working capital. Normally, stock-based loans have a greater loan-to-value ratio compared to margin loans and come with a fixed interest rate, thus giving certainty throughout the period of transaction.

According to Christy, within the normal three-year loan duration, fluctuation in market is inevitable. However, stock-based loans offer a hedge with borrowers reducing their investment risks in a downside market. Also, most stock-based loans bear a non-resource feature allowing borrowers to walk away from their loan at any time of their wish even when the stock value goes down. Hence, the borrower keeps the initial cash and is no longer held accountable by the lender and its Linkedin.

Also with stock loans, borrowers anticipate a fixed interest ratio ranging from 3 to 4% and a loan to value ratios varying from 50 to 75 percent. The loan comes with no restrictions and thus can be used for different purposes. Equities First has been established on the code of transparency and integrity with the firm depending on spearheading regulatory, legal and trading institutions for counsel. The mission is to offer the optimum benefit with small risks to ensure every investor can meet their professional and personal financial goals and more information click here.

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