Using Equities as Loan Collateral

Many business owners have decided to liquidate equities in order to raise capital in an emergency. There is no reason to do this; they can use the equities as collateral for a loan instead.

Institutional lenders and banks will lend on Equities First. If you were to visit your bank, you would find that they will lend on up to 40% of the value of the equities — not very much, really. Then, the institutional lender will tell you that they have to check which stocks you own very carefully, since the government prohibits lending on some of them. They will then ask you for a business proposal, detailing exactly how the funds are going to be used. And after all of that, you discover that the interest rate is likely double the rate of the other loans. You find out that the funding will take some time.

Now, what if you had gone to Equities First UK instead?

They lend on equities. You can tell that by the name. They will lend up to 80% of the value of the equities you have. They are a private company, so they do not answer to the government to see if they can lend against the equities you have. They will not ask for a business proposal detailing the use of the funds. Their interest rate is much, much lower than any bank or conventional lender. Then they will fund your money in far less time than you had thought and more information resume this company.

It would have been far easier to see Equities First UK in the first place.

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