Recently, Equities First Holdings LLC reported an increase in stock-based loans and margin loans. The improvement of the company’s business environment follows a recent trend by financial institutions that have seen them tighten their lending criteria. The trend has also left borrowers without the option of accessing loans to finance their businesses. To this end, individuals who do not qualify for the conventional credit based loans are turning to companies offering equity-lending services.
Besides tightening their lending criteria, banks have cut their lending options for borrowers and increased their interest rates. According to Al Christy jr, this situation has resulted in the success of the innovative stock-based loans. The loans use stocks held by the borrowers as collateral. The loans have a high loan-to-value ratio. This way, they are suitable for individuals seeking working capital. The loans come with a low and fixed interest rate. Fixed interest rate is ideal as it offers borrowers with certainty throughout the life of the loan. Al Christy is the founder and chief executive officer of Equity First Holdings.
Al Christy notes that most capital loans are repaid over a period of three years. With the volatile market, fluctuations may often lead to the change in interest rates charged on the traditional loans. This situation may negatively affect one’s investment, as the cost of the loan may suddenly go up. The company offers its loans on a fixed interest rates basis. By virtue of paying a known amount of interest throughout the life of the loan, investors are able to guarantee the stability of their investments.
The company’s stock-based loans have a non-recourse feature that allows its clients to walk away from a stock loan at any point even if the value of their stock has depreciated. The feature does not rely on the performance of the stock.
About Equities First Holdings
Equities First Holding is a renowned financial institution offering alternative financing solutions. The company is primarily known for its reliable stock-based loans targeting individuals and businesses needing quick capital to meet their goals. By virtue of being in the industry for long, they have succeeded in getting a large client base.
The company was incorporated in 2002. Over the years, they have handled over 650 transactions. These deals are worth over $1.4 billion. Equities First Holdings operates several subsidiaries such as the Equities First Holdings Hong Kong Limited and Equities First Holdings Singapore Limited.