Equities First Holdings, LLC (www.equitiesfirst.com) is a universal leader and lender in offering optional shareholder monetary solutions. The company is currently witnessing higher traction of stock-based loans and margin loans in the economic atmosphere where traditional institutions such as banks have made their lending criteria tighter. For borrowers seeking to raise quick capital and also who may not qualify for traditional credit-based advances, Equities First is gaining familiarity as an option and read full article.
Although some alternatives still exist for the borrowers, over the last few years, many banks have been witnessed to reduce their lending services for borrowers, increasing interests’ rates and even tightening minimum loan qualifications. The CEO and Founder of Equities First, Al Christy, Jr. confirmed the loans collateralized by equities as technological lending option for investors seeking for working capital. Typically, stock-based credits come with a greater loan to value proportion compared to margin loans and fixed interest rates, thus giving certainty throughout the transaction period.
According to Al Christy, Jr., in a normal three-year loan period, the market fluctuation is not evitable; however, stock loans offer a hedge with the loan minimizing borrowers’ risks during the market. Also stock-loans feature a non-recourse benefit that permits borrowers to walk away from their loans at any point of their convenience, even when the stock value depreciates. But borrowers can keep the first amount borrowed without more commitment to company and Equities First of resume.
Al Christy also clarified that stock-based and margin loans are not the same as many people think. Even though both use equities as security, there are various variations. For instance, for a margin loan, borrowers are pre-qualified the same case with conventional bank loans and lenders may ask the funds to be applied for particular purposes. Interests’ rates are not fixed and borrowers may expect loan to value ratios of between 10 5to 50%. Additionally, the lender can liquidate borrowers’ collateral without precaution during the moment of a margin call and what Equities First knows.