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.