Global Lender Equities First Holdings Sees a Growing Trend Among Borrowers Who Use Stock as Loan Collateral to Secure Working Capital

Equities First Holdings is one of the well-known alternative financial shareholder solution companies based in the United States. For the company, nothing thrills their business structure than success in the issuance of loans using stocks as collateral. For this reason, they have worked to have their businesses delighted by the use of assets as collateral. During a harsh economic crisis, there is always inevitable market fluctuation of the stocks you can use as collateral to secure the fast working capital. However, there is always market change in the using end. As a matter of fact, we are always delighted by the use of the stock-based loans as a way of securing fast working capital.

For the company, they are ever delighted to realize that the use of stocks to secure loans during a harsh economic crisis is always on the rise. During a severe economic crisis, many things do occur. One of them is the increment of the loan interest rates to amounts which have most people scared away from laying their applications. For this reason, we all work to have their capabilities increased to rates which have their best interests at heart. Credit-based loans, during times of harsh economic crisis, are associated with tightened lending capabilities. For this reason, few people get to apply for the loans in a manner which depicts real nature capability.

For borrowers who want to secure fast working capital and may not get the necessary qualification in the credit-based loans, they might consider Equities First Holdings as one of the most trusted companies in this line of services in the world. While there are many options out there for the individuals, banks have their lending capabilities cut down for borrowers seeking credit-based loans. As a matter of fact, the stock-based loans present a higher loan-to-value ratio than any other investment in the world. For this reason, the use of the stock-based loans is on the increase since Equities First Holdings has become one of the most trusted companies in this line of duty. According to Al Christy, there are many divergences between the margin loans and the credit-based loans.

Equities First: Cheaper and Better Lending

Equities First Holdings (EFH) is a global private equity company that offers non-purpose shareholder funding and other corporate financial solutions. The firm provides non-recourse loaning option at friendly terms and uses publicly traded securities and stocks as collateral.

The company was founded in 2002 and has helped clients around the globe to get the capital they need since then. To date, the company has handled more than 700 transactions and has conducted more than 1.4 billion dollars in the process. Some of EFH clients include directors of businesses that trade publicly, individuals of high net worth, asset management organizations, and global financial service firms. The company has offices in Switzerland, The United Kingdom, Singapore, Thailand, The United States, Australia and Hong Kong.

In today’s economic climate, it ‘s tough for business startups to secure funding to either create or expand their businesses. The most common sources of financing for such enterprises are personal savings, credit cards, microloans, retirement benefits and funds from family and friends. However, Equities First Holding is giving entrepreneurs a reason to smile with the introduction of stock loans.

This money is loaned out to millions of entrepreneurs who would otherwise be unable to receive bank loans due to poor credit or low income. The high risk assumed by lenders leads to high-interest rates with the average microloan interest rate reaching as high as 35 percent annually. This is where EFH comes in.

Stock loans provide an alternative with significantly lower interest rates. It uses equities as collateral for a specified period, usually three years after which the individual retains all his stock at maturity. Perhaps the best thing about sock loans is that it is not necessary for the recipient to sell their shares.

The average rates on stock loans range from 3 percent to 7 percent compared to 30percent for micro-loans. The difference between the two is mind blowing. For individuals with securities to serve as collateral, stock loans are a more attractive package.