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.