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.
About the Company Equities First Holdings
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.
Equities First Holdings, LLC is a leading financial service firm that offers lending solutions for high-net-worth individuals and businesses that seek non-purpose capital. The company was founded in 2002 and has its headquarters at Indianapolis, Indiana but with a satellite office located in New York City. Equities First Holdings is recognized for its unique securities based lending services with loans based on an evaluation of risks and future performance of stocks, treasuries, and bonds.
Since 2002, the firm has enabled several individuals and companies to acquire alternative funding against publicly traded stocks. So far, the company has transacted over 650 applications worth more than $1.4 billion. The funds offer clients high loan-to-value rates at minimum interest rates.
Equity First Holdings Record Increased Transactions In Margin Loans and Stock-Based Loans.The bank is seeing increased demands for margin loans and stock-based loans across its branches across the globe. In economic times when ordinary banks are tightening lending criteria, Equities First Holdings has received massive numbers of borrowers seeking quick capital. Others may have failed to meet the rigorous requirements by the conventional lenders.
Al Christy, Jr., the founder and CEO of EFH, considers loans that are collateralized by stocks as the alternative innovative means of getting working capital. The fixed interest rates and high loan-to-value rations ensure that the borrower gets maximum value for their money.Christy also notes that many borrowers confuse margin loans for stock-based loans. They are marked differently in terms of qualification procedures. With margin loans, you must be pre-qualified just like the case of conventional loans. The bank may demand to know the purpose of the loan and the money must be used for that specific purpose. The interest rates are also variable and the loan-to-value rations are between 10% and 50%. In an event of margin call, the bank can decide to liquidate the collateral without notice.
However, with stock-based loans, the borrower is offered fixed interest rates, and loan-to-value rations are between 50% and 75%. The borrower can use the money for any purpose, and the loans are non-recourse. In other words, you can choose to walk away without obligation.