One of the fastest growing specialty finance firms in the world is Equities First. Equities First is a firm that provides consumers and small businesses with a unique type of loan option. While most major lenders have cut back on consumer lending, this specialty finance firm has found a way to provide some customers with the access to capital that they need.Equities First is a leader in providing stock secured loans. When providing a loan, the company will take a lien on a stock portfolio that is in the name of the barber.
In the event that the loan payments are missed, the lender will have the ability to then liquidate the stock to pay off the loan balance. This provides the lender with a great form of collateral, which then allows them to offer low interest rates.A stock secured loan provide a number of benefit to the borrower as well. Getting a secured loan can provide a bar work with more personal leverage, can help them avoid higher tax rates, or could help them raise personal capital. Regardless of the borrower’s needs for the loan, having access to this type of that provides them with the ability to greatly improve their long-term return on investment.
Due to the value in the product they provide, Equities First has continued to grow across the globe. The company has a strong presence in North America, Europe, and Asia. However, the area that has seen the most growth overall has been Australia. Equities First has further signaled their interest in continuing this growth. The company has recently signed a new lease in a Melbourne office building that will more than double their space. The new space will be used for a variety of purposes including sales, operations, and administrative and clerical support.
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Almost every small or medium sized business runs into a cash flow problem at some time. Maybe payroll needs to be paid because an emergencies took a lot of overtime, or maybe one of your clients fell into trouble and have not paid on time. At any rate, something must be done.
Along the way, you have invest in stocks, and you want to use that as equity for a loan. You find out that the banks will not lend the money based on the value of the stocks, and the interest rate is outrageous. Then they want to know what the money is for, and you must write a proposal to cover that.But after all is said, time is passing, and you need the cash now.
That is where Equities First AU come in. Equities First AU is a private company, not a conventional lender. They do not have to go by conventional lender rules. They can lend up to eighty per cent of the value of the stock, and they do not want to know what the cash is for. They lend quickly, with no business proposal, and their interest rate is the lowest you have seen!
They can do all of this in their own way, because they are a private company, and do not have a group of stockholders to answer to. They do not have to abide by some of the rather ludicrous regulations that hinder conventional lenders, either. They can lend as much as they want, at whatever rate they want, and they can use your equities as collateral, up to eighty per cent of the value of the equity. You owe it to yourself to keep them in mind if a business emergency arises.
Equities First Holdings is a well-known established company that deals with lending solutions to investors and businesses. Stock-based solutions are the most dealt with in these lending solutions. The services of the company are delivered globally. Equities First Holding’s headquarters is in Indianapolis, Indiana. However its other offices are in Sydney, London, HongKong, Perth and Singapore.
Investors who are up to the task as well as companies are also capable of getting an alternative capital from the company. $1.4 billion is the amount of money Equities First Holdings has summed after completing almost 1000 transaction since the year it began. The company began in 2002 and founded by Al Christy Jr who is also in charge of 50 employees at the organization. The firm helps in lending capitals to potential investors to start off their business.
Stock-based loans are what the company majors in, therefore the amount provided is fixed to its interest making loan to the amount ratio high. Equities First Holdings puts their customers as their first priority and ensures that they are well taken care of. The customers are assured of getting an excellent service when it comes to the stock-based loans. Just like other loans there must be a difference between stock-based loans and margin loans. Stock-based loans have no kind of restrictions and their interest rate from 3 to 4%.
Those who borrow from stock-based loans are at liberty to reach higher on their loan even when there is a drop in the stock price. Stock-based loan to value ratio ranges from 50 to 75%. However Margin loans have specified limits and restrictions. The capital given is used for specified reasons and its loan to value ratio is 10 to 50%. Equities First Holding is a developed lending solutions company that makes sure it has achieved the financial goals of a client.
Equities First Holdings is one of the global leaders in the alternative financial solutions industry. The company has also seen an increased intake and traction of the stock-based loans as the financial crisis is in the loose end. During a financial crisis, banks have their lending capabilities tightened. In the end, here are fewer people who get to qualify for the credit-based loans which are also characterize by the high-interest rates. For those borrowers who need fast working capital and are not in qualification for the credit-based loans offered by banks and other alternative credit institutions, they might find Equities First Holdings useful.
During this time, many lending and loan options are existing for companies and other individuals. However, there lending options for borrowers seeking credit-based loans from banks is cut down on a massive scale. For this reason, the road to qualification for the loans is full of hindrances. According to Al Christy, he has seen the increased traction of the stock-based loans in the event of an economic crisis where these banks gave their lending capabilities tightened. He has also seen that people can get innovative when they want money for their reasons.
According to Al Christy, the stock-based loans have many adorable characteristics. As a matter of fact, they have a non-purpose feature which allows the borrower to qualify for the loans without stating the intended use of the loan. Moreover, they are also characterize by the use of the noun –recourse feature which gives them the power to evade the loan repayment without having any legal implication.
Al Christy has also seen one of the main causes of concern in the trading sector in the world. For most people, they do not realize that there are set differences between the margin loans and the stock-based loans. A proper individual must understand that the two are different in nature.
Due to tightened credit markets across the globe, getting a personal loan today is harder than ever before. While getting an unsecured personal loan with a reasonable interest rate can be hard, there are some other options provided by specialty finance companies. One company that has excelled at providing personal loans to consumers for over 10 years is Equities First.
Equities First provides a unique financing solution that is available to anyone that has a stock or other liquid asset portfolio. The company will be able to provide a loan equal up to 100% of the portfolio of stock. Equities First will take a lien on the portfolio and will have the right to pay off their loan by liquidating the stock in the event that the loan goes into default.
Consumers often will benefit from this type of loan structure because it provides a more affordable interest rate and fee structure. Since the company is provided with a very liquid piece of collateral, they are able to offer interest rates that are comparable to typical bank interest rates.
Taking out a loan from Equities First is a good idea for a consumer that is looking to manage their tax or estate situation. Depending on where you live and how long you have owned the stock, you could face a significant tax penalty by selling the stock. In many situations, it would make more sense to take out a loan against the stock and wait to sell the stock until it makes more sense from a tax perspective.
Depending on the borrower’s investment strategy, it could also be a good idea to wait to sell and take out a loan instead. If the borrower believes that the stock will increase in value in the coming years, it may make far more sense to put leverage on the stock and wait for the appreciation and dividends. In many cases the excess dividend and appreciation in value received will far outweigh the cost of taking out the loan and paying interest.
Investment banking involves the provision of different financial-related services to institutions and individuals. These services include helping clients to raise financial capital and acting on their behalf during the issuance of securities. Additionally, investment banks act as advisors to institutions involved in amalgamations and acquirements. Also, they provide ancillary services such as forex trade and market making.
Unlike commercial banking, investment banking does not accept deposits. Upon the endorsement of Glass-Steagal Act in 1993, the commercial banking and investment banking in the U.S. were separated. However, not all countries have maintained the separation between the two sectors. As part of Dodd-Frank Act of 2010, Volcker Rule maintains that not all commercial banking institutions can be separated from investment banking.
Examples of buy-side entities include unit trusts, hedge funds, private equity, and life insurance companies. Nonetheless, investment banking can be split into private and public entities. The public entity of investment banking involves stock analysis while the private entity comprises of insider information. An investment advisory agency in the U.S. must be an accredited broker-dealer and operate under the U.S. Financial Industry Regulatory Authority.
About Martin Lustgarten
Martin Lustergaten is a Venezuelan and Austrian-based investment banking advisor. Over the years, Martin has leveraged his citizenship to help his clients across the world invest wisely. Martin’s wealth is spread in several countries to limit the expected risk while riding on lucrative benefits from the local economy. Additionally, he has a veteran eye when it comes to observing market trends and speculating financial future changes. The ability to speculate oncoming market trends allows Martin to offer reliable advice to his clients.
Martin has worked incredibly hard to ensure that his clients invest wisely. He is an ideal role model for any investors wondering how to diversify their finances. Investors wishing to grow their wealth should follow Lustgarten’s investment policies and will go places. Martin’s investment moves inform the best investments that one should make in the future.