The recession might have subsided but the aftermath continues lingering on. One of the fronts still reeling in the doldrums happens to be the capital markets. Businesses are unable to access the necessary finance to both sustain their operations and to expand and diversify their portfolios.Conventional lenders have made life difficult for small to mid-sized entrepreneurs. The tighter regulations by banks continues to starve businesses off the desperately needed cash. For them to survive they need to find new sources of financing. This is where companies like Equities First comes in to save the day.Ideally, the firm specializes on securities-based lending. Investopedia defines this lending as a practice of issuing loans using securities as the main collateral.
The capital advanced can be used to purchase real estate, personal property, personal investments or in business. The borrower is, however, restricted from acquiring other securities for instance shares or even repaying margin loans.Consumers prefer securities-based lending’s for a number of reasons. First, they are easy to come by and secondly, the terms and conditions are very flexible. The risk factor is also another outstanding perk. Here are the five simple steps one follows when seeking a loan with Equities First Inc.
- Contacting them.
Reach out to the firm and express your intentions. How much money do you need and what collateral do you have?
- Valuation step
The staff at the firm calculate the repayment loan-to-value (LTV) ratio and the fixed rates payable on your loan.
- Terms and Condition
It’s now time for you to sign the agreement and receive your money.
- Funding stage
The experts at the firm utilize the delivery-versus-payment method to fund your loans. The amount gets transferred into your holding account while the collateral changes ownership, temporary.
- Collateral Swap
Upon repaying the loan advanced plus interest, the collateral’s ownership reverts back to you.
About Equities First
Equities First is UK registered company which lends businesses and high-net worth individuals capital. Their lending is hedged against stocks as opposed to conventional securities required by the other typical lenders. For the past 14 years, this firm has made life simple for thousands of people the world over. Their success is quite evident from the well over 650+ transactions at the 9 global offices they currently operate from.
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During a harsh economic crisis, Equities First Holdings has shown the world that it is a better source of alternative financial options using stocks as collateral to secure the capital. As a matter of fact, the stock-based loans have also been adopted during the harsh economic crisis because the banks have tightened loan qualification criteria. When the economic crisis is set up, credit-based loans are characterized by higher interest rates to have most people not qualify for the stock-based loans. For this reason, you will end up working with different capabilities in a manner that depicts the true nature of the independence.
For borrowers who are in search of fast capital during the harsh economic crisis, they might consider the magic with Equities First Holdings and get better results through their work ability. As a matter of fact, no one has a better understanding of the loan than any person working for better solutions. For this reason, they end up developing high-end capabilities in a manner that depicts the true nature of this industry. Margin loans and stock-based loans have become so popular during the harsh economic citation. For you to get the loans, you must submit your socks as collateral and get an equivalent amount of money. If you default your payment, you can walk away from the loan without having any obligation to the lender. The lender will, therefore, take over your stocks to liquidate it and get back their money.
The stock-based loans are characterized by the non-recourse feature that helps all lenders disengage their loan with the lender. This means that you can afford to go away from the loan and get better results through management. As a matter of fact, the loans act as better working capabilities in a better environment. Stock-based loans also gave very low-interest rates.
Equities First Holdings is a worldwide leader and lender in alternative shareholder financing solutions. As financial institutions such as banks continue to tighten their lending criteria, an alternative attractive way to raise capital based on stock loans is being offered to investors. They are starting to discover more traction in stock-based loans in an economic situation where other competitors are tightening up. Debtors who need quick capital or do not qualify for credit based loans are turning to the system. Such people have options at margin based loans but have the disadvantage of increased interest rates.
Al Christy, the Chief Executive Officer and founder of Equities First Holdings, says that collateralized loans by stocks are an innovative and inventive way of people and institutions seeking working capital. This system has a greater loan to value ratio compared to margin loans but offers a fixed interest rate hence a calming certainty throughout the transaction.
Christy continued that in a typical two-year-old loan term, although there will be a lot of market fluctuations, stock-based loans is a better solution since it reduces the investment risk. The investor can also activate the non-recourse feature which allows him/her to walk away from the loan at any instant.
Many people think that stock-based loans and margin loans are the same since they use securities like collaterals but there are a lot of differences. Margin loans require the creditor to be pre-qualified and need the money for a certain purpose. The interest range of the loan varies between ten to fifteen percent of most banks and they can easily liquidate the collateral without prior warning. Stock-based loans have a fixed rate of between three to four percent and a loan to value ratio of around sixty percent. Stock-based loans have no restrictions on the purpose of the loan and are non-recourse hence the borrower can go with the money with no obligation.
Equities First Holdings was created in 2002 and offers capital which goes against shares operated on public exchanges platforms all over the world. The company has so far done in excess of six hundred and fifty transactions.
Equities First Holdings (EFH) is a recognized giant in offering alternative financial solutions. It supplies funds against publicly traded shares to allow customers to meet their short-term and long-term investment goals. The firm has expanded its operation across strategic countries in the world. Since 2002, it has completed over 650 transactions totaling to over $1.4 billion. It offers loans that attract low fixed interest rates to its both new and loyal clients.With service centers in nine nations, EFH has a strong global presence. It delivers its services through independent subsidiaries such as Equities First (London), Hong Kong-based EFH, Equities First Holdings (Australia), and South Africa-based EFH. The firm has strived to offer ingenious financial solutions despite its immense expansion.
A unique and secure loan process :
- Individuals who need share-based loans should start by contacting EFH with details about their proposed collateral as well as the amount of funds they require. They can contact the firm via email: firstname.lastname@example.org or phone: 1.866.507.9160.
- Once the EFH’s professionals determine that an alternative financing solution is ideal for the interested individuals, they will come up with the loan terms and compute a loan-to-value ratio and the interest rate.
- Terms agreement and transfer of collaterals: Clients should read and understand the EFH’s terms agreement. They should proceed to sign the agreement and move the collateral to a custodian account provided by EFH.
- Funding: EFH uses a delivery-versus-payment strategy to fund loans. This method ensures both loan proceeds and collateral are moved into holding accounts concurrently.
- Return of collateral: Borrowers must pay the agreed upon interest throughout the loan period. At the end of the loan period, the borrowers receive their pledged collateral in full, but they must have cleared the principal funding.
Growth in stock-based borrowers :
Equity First Holding has noted a significant growth in share-based loans and margin loans in an arena where many financial institutions have restricted their lending standards. The company is rapidly gaining popularity among borrowers who are looking for quick means of raising capital. The founder and chief executive of EFH, Al Christy, see stock-based loans as a groundbreaking financial solution for individuals seeking urgent capital. The loan-to-value ratio of share-based loans is higher when compared to that of margin loans. Additionally, share-based loans have a fixed interest rate, offering certainty throughout the entire duration of the transaction. Al Christy says that share-based loans are a unique strategy that investors can use to navigate economic downturns.
Equities First Holdings is one of the top financial solutions. They are an alternative to other lenders that are strengthening their lending requirements. Equities First Holdings, LLC is very popular right now because of their leniency. For those who are seeking a loan but don’t quality, Equities may be a good way to go.
There are plenty of options that consumers can choose from but other banks are inclining their interest rates rapidly. A lot of these other banks also have very strict rules when it comes to getting a loan.
Margin loans are loans that the consumer must meet the requirements for. The bank may also ask the consumer what they are going to use the loan for. Margin loans also seem to have very high interest rates.
Stock-based loans have no requirements and you don’t have to meet any requirements. Doing a stock-based loan is risky however, as you may lose money. If you do start to lose money, you can stop the loan at anytime with no penalties from the lender.
Equities First Holdings offers a variety of alternatives. The loans from Equities, usually have a very low interest rate compared to other lenders. They have been providing consumers with an alternative since they were founded in 2002. Equities is a global company with the company in 9 different countries. The headquarters for Equities First Holdings is located in Indianapolis, India with an office out of New York.
Equities First Holdings has a very highly qualified team to deal with all of the finances. These experts have college degrees and they are one of the best financial teams to work with as they can help their consumers in a productive environment.
Equities First Holdings offers alternative solutions to individuals, companies and executives of companies around the globe. Equities First Holdings always has a very high growth percentage at the end of each year. Equities is growing at a very rapid pace compared to other lenders. Equities has also been hiring plenty of employees to help out with their business over the last few years. Equities has been helping people for years and will continue to do so.
for more info: equitiesfirst.com