One of the leading specialty finance firms in the world is Equities First. The company, which has been in business for around a decade, has already provided more than $1 billion in consumer loans to people across the United States, Europe, Asia, and the rest of the world. This also comes at a unique time when more traditional lenders have been cutting back on the level of consumer loans that they provide.
Equities First is a unique specialty finance firm that focuses on providing stock-secured consumer loans. When providing one of these loans to a borrower, the lender will be able to take a first lien position on an existing stock portfolio. Along with the lien, the lender will have the ability to liquidate the stock if the loan payments go into default. Due to this strong level of collateral, the lender is often willing to advance a loan at a high leverage point and charge a low interest rate.While paying interest on a loan secured by a liquid asset may not seem to make sense to some people, there are a lot of situations when it would make sense to take out a loan as opposed to selling the stock. One of the most common reasons to take out a loan is for tax planning purposes.
In the United States, there are a lot of tax benefits that come with waiting to sell a stock. In almost all cases, the interest on a loan will be much lower than the higher tax rate charged.Taking out a loan from Equities First is also a good idea for investment planning purposes. If you believe that the stock will be increasing in value in coming years, or the stock pays a strong dividend, it would make a lot of sense to wait to sell and to leverage the stock instead.
With its headquarters in Indianapolis, Indiana, Equities First Holdings finds the best possible financial solutions for businesses as well as individuals that have stocks – either in their own company or in companies they have invested in – that they can put up as collateral in what is known as a stock based loan.
Stock based loans have many benefits, including not having many of the restrictions as to what the funds are used for once the borrower is approved for the loan and the funds are released like with some other types of loans. Also, borrowers are able to repay their loans at a much lower interest rate – oftentimes lower than 4%. This means that the risk to the borrower is much less, especially when it’s quite evident that the stocks put up as collateral are doing well.
Equities First Holdings processes for getting loans in the United States, of course, but also internationally, including in London, Hong Kong, Bangkok, and even Sydney. If you’re looking for a way to fund your next business venture, expand the products or services that your business offers, or would like to use your business as a way to fund more personal pursuits, you can contact EFH from many places in the world and they can help you with the financial services you need.
Since 2002 when they first opened their doors, Equities First Holdings has managed over $40 million in assets for their clients. Their mission for their clients is to get every single one the maximum benefits possible with the least amount of risk to them so that they can meet all of their personal and financial goals. When you need to borrow money, and quickly, you want to make sure you do it through a money management firm that is a strong leader in the industry and well trusted to take care of all of your financial needs.
Equities First Holdings is one of the best sources of alternative financial solutions in the world. While banks and financial institutions have tightened their lending capabilities on the credit-based loans, Equities First Holdings has found favor in many eyes as the next best solution to their needs. The company uses stocks as collateral to offer businesses and high-net-worth individuals with fast working capital to meet their daily professional and personal needs. The company has also noted traction among the stock-based loans as one of the most innovative ways of securing working capital in this harsh economic condition.
During this tough economic era, banks and other financial institutions that offer the credit-based financial solutions have tightened their lending criteria. As a matter of fact, they have also increased their interest rates to scare away most credit-based loan applicants. For this reason, most businesses and high-net-worth individuals have sought the advice of Equities First Holdings on the stock-based loans as one of the best ways to secure fast working capital for their businesses. For those who do not qualify for the credit-based loans and are in need of fast working capital, then Equities First Holdings has gained adoption on a massive scale to take care of your financial needs during this harsh economic crisis.
While there are various options of financial solutions out there to help you secure a loan, banks and financial institutions have cut down their lending capabilities. The Founder and Chief Executive Officer of Equities First Holdings, Al Christy, have seen an increased popularity for people who want to secure fast working capital using stocks as collateral. According to him, this is one of the most innovative ways of meeting your financial needs during a financial crisis where banks worsen their behavior. For the company, stock-based loans offer are characterized by low-interest rates they also offer a higher loan-to-value ratio than the credit-based and margin loans. For this reason, you have certainty throughout the life of the financial transaction.
There is always inevitable fluctuation during a three-year loan term. For this reason, you will find hope in the stock-based investments because they offer a hedge. Your investment risk, for this reason, is lowered in the downside part of the market. According to Al Christy, the stock-based loans come with a non-recourse feature that lets you walk away from the loan without having a further obligation to the lender. Therefore, you can enjoy the proceeds of the loan even when the stock values depreciate.