Equities First: What To Expect
Equity First Holdings, LLC is a global lender and a leader in the area of alternative shareholder financing. Because of the fact many financial institutions have increased restrictions on loan qualifications, they are seeing an increase in traction in both margin loans and stock-based loans. Equity lending is a popular alternative lending option for borrowers who are in need of capital but may not meet the required qualifications for traditional loans.
Equities First Holdings LLC has been proving clients with alternative financing options for 14 years. It has accomplished this by supplying capital against stock that is traded publicly in order to allow clients to meet both their personal and business goals. They do not provide capital only against stock trade in a single country, but they provide capital against shares that are publicly traded worldwide. The company has successfully completed over 650 transactions totaling more that $1.4 billion. Those transactions have had high loan to value at low fixed rates.
Equities First Holdings is a global company that has offices in nine countries that include Equities First (London) Limited, Equities First Holdings Hong Kong Limited, Equities First Holdings Singapore Limited and Equities First Holdings (Australia) Pty Ltd.
A Different Business Model
Although large brokerage firms also issue stock loans, these are typically at higher interest rates than those Equity First can offer. Another disadvantage is the Securities and Exchange Commission regulations limit their lending to 50 percent of the value of an individual stock. Founder, Al Christy refers to EFH as a private equity company that does not fall under the same limitations.
Half of the clients of EFH are repeat customers and comprised of both retail and institutional investors who have various loan needs. Not all of those customers are wealthy according to Christy, and loans range from $100,000 to $8 million. The majority of the loans are secured by stocks that trade over the counter, on Dow Jones, or as pink sheets. The fact is operates under less restrictive regulations makes it a popular niche for many potential borrowers.