Equities First Lending Matches Clients with Stock-based Loans Tailored to address their Needs

In today’s dynamic financial marketplace, people in need of capital have access to numerous financing options. Even those with poor credit history or in need of urgent funds can utilize their shares as collateral to acquire loans at competitive rates. Equities First Holdings is a powerhouse when it comes to loans that are collateralize by stocks. Loans collateralize by stock include share-based lending and margin lending. The similarity of these two lending options is that they allow individuals and firms to utilize stock as collateral.

Differences

The loan-to-value ratios of stock-based lending are approximately 75 percent while for margin loans the ratios are from 20 percent to 50 percent. Borrowers of margin loans may be instructed to use the money obtained for a particular purpose. On the other hand, stock-based loans are non-purpose, implying that the proceeds can be utilized for any reason. The interest rates for traditional margin loans tend to vary while those of stock-based ones are fixed.

Advantages of stock-based loans:

  1. A hedge against market fluctuation

Taking share-based loans offer a chance for investors to navigate through tough market fluctuations. This loan allows the borrower to minimize his or her risk in declining market.

  1. Non-recourse feature

The non-recourse aspect associated with stock-based loans enables a borrower to abandon a share loan any time she or he wishes. Even when the share’s value declines, the borrower will comfortably retain the initial loan proceeds.

Equities First Holdings

Equities First Holdings (EFH) delivers innovative solutions to executive and affluent individuals in need of non-purpose capital. The firm concentrated on developing a product that supplies ample liquidity at flexible terms via a safe and transparent process. Its novel approach to stock-based loans has resulted in over 635 successful transactions to date. The company’s unique method of financing offers many of its customers with a lower cost of capital and ideal financing terms compared to the conventional financial alternatives.

EFH operate internationally via regional offices in Hong Kong, South Africa, London, Bangkok, Sydney, Singapore, and Perth. It provides financial arrangements customized to suit the needs of borrowers. EFH specializes in capital allocation, alternative finance solutions, as well as financial services. The Indianapolis-headquartered lending heavyweight opened its doors back in 2002. In 2013, the company released a statement to its clients, announcing a double-digit growth and global expansion. EFH has been experiencing a 30 percent annual rate of growth since its establishment over 15 years ago.

Changing the Landscape of Financial Institutions

Specializing in unusual loans that are regularly either overlooked or not served by conventional loan vendors, Equities First Holdings sees a mighty growth. Equities First Holdings loan out money for professional and personal purposes to individuals and entities which are backed by publicly traded stocks, shares and equities.

With an active presence in nine countries, this financial company headquartered in Indianapolis, Indiana in the United States. Its wholly owned subsidiaries are located in Hong Kong, London, Singapore and Australia under the names Equities First Holdings Hong Kong Limited, Equities First (London) Limited, Equities First Holdings Singapore Limited and Equities First Holdings (Australia) Pty Ltd respectively. They are set to make their mark across the globe and are expecting a vast growth in Europe and South Pacific Asia.

The demand for unconventional loans is always high combined with cumbersome and enviable loaning criteria set by banks and conventional financing institutions; Equities First took advantage of this by offering loans on easy terms and feasible interest rates. The loan to value ratio varies between fifty to seventy percent whereas this value for conventional banks ranges between ten to twenty percent.

The company loans out money for working capital needs and for personal purposes like marriage, education, travel, touring for personal pleasure and for business purposes. Equities First Holdings dealing has registered a growth rate of over thirty percent since its inception year back in 2002. The Chief Executive Officer of the company said that over seventy percent of the loans have originated from international clients and thereby marking their entry into countries that were previously left unexplored.

Equities First Holdings has invested in investment management software’s and client servicing mechanisms and it is currently almost doubling its sitting capacity at their headquarters. The company has serviced loans not only for Corporations and business but also for ultra-high net worth individuals. With volatility in loan interest rates, the company has registered a constant growth when the market seems to be down for conventional loan vendors. With a guaranteed solution, Equities First Holdings is set to make its mark in the world in both short and long term scenarios.