Equities First Holdings (EFH) has been seeing a growing number of borrowers who use stock to secure working capital. Stock-based loans and margin loans are gaining more traction in an economy where most financial institutions have stiffened their lending criteria. Equities lending has become popular among the borrowers as an alternative to the usual credit-based loans.
In the recent past, most banks increased their rates of interests, tightened their loan qualifications and cut borrowers’ lending options. The founder and CEO of Equities First Holdings, Al Christy, asserts that collateralization of loans by stock is a creative alternative for people seeking working capital. The advantage of stock-based loans is that they have a high loan-to value ratio relative to margin loans. In addition, it offers a fixed rate of interest, thus providing assurance during the life of the transaction.
Christy notes that stock-based loans and margin loans have marked differences. Stock-based loans do not have restrictions. This way, the borrower can use the money for any purpose. Given that these loans are non-recourse, borrowers can walk scot-free, even if the collateral stock’s value has decreased. In case of a margin call, borrowers of margin loans may suffer as the firm may choose to liquidate their collateral without notice. Borrowers of margin loans have to be pre-qualified. This information was originally reported on Market Wired as provided in the following link http://www.marketwired.com/press-release/global-lender-equities-first-holdings-sees-growing-trend-among-borrowers-who-use-stock-2141671.htm
About Equities First Holdings
Equities First Holdings was established in 2002. Its headquarters are located in Indianapolis, Indiana. The full-service, non-purpose, private lender has specialized in lending transactions, especially those based on securities. They provide investors with prompt funding. EFH has a clear-cut process that enables clients to gain access to liquidity, which is below the market rates. They use publicly traded shares as collateral. Over the years, the company has managed to complete close to 700 transactions for its clients. These consumers range from global companies to high and ultra net-worth individuals.
Over the past 3 years, EFH’s closed loan transaction has reported yearly growth exceeding 30%. This remarkable achievement is expected to continue into the unforeseeable future. Since 2012, the company has reported an increase of over 50% in its total global workforce. EFH has seven offices, which are strategically located to serve clients in the U.S., Asia, Europe and Australia. This information was originally mentioned on Business wire as explained in this link http://www.businesswire.com/news/home/20140923005238/en/Equities-Holdings-LLC-Acquires-London-Based-Meridian-Equity