Established in 2002, Equities First Holdings is an international stock-based lender. A trailblazer in substitute shareholder financing solutions headquartered in Indianapolis, USA. This company gives low-fixed interest rate and non-purpose credit to clients to meet their personal and professional needs by using their publicly traded stock as collateral. These shares can be traded on any trading exchange around the globe. As of 2016, Equities First Holdings had handled over 650 transactions estimated to be more than $1.4 Billion.This firm has offices in 9 countries in the world including wholly owned subsidiaries; Equities First Holdings Hong Kong Limited, Equities First Holdings Singapore Limited, and Equities First Holdings (Australia) Pty Ltd and Equities First (London) Limited.
Equities First Holding’s loans are a perfect alternative to individuals and firms that need to raise a lot of money on short notice and also those that don’t qualify for the traditional credit-based loans from banks. In recent times, banks have reduced their lending options, increased interest rates as well as tighten loan qualification requirements.According to the Founder and CEO of Equities First Holdings, Al Christy, using stocks as collateral for loans is an innovative way for individuals seeking working capital for their businesses and other projects. The advantage of these loans is that they have lower interest rates (3 to 4 percent) than conventional bank loans and they also have a higher loan-to-value ratio (ranging from 50 percent to 75 percent) as compared to margin loans. Besides, these stock loans have a non-recourse feature in that; the borrower can walk away from the loan at any point even in the event of depreciation in the share value. Additionally, the borrower can keep the initial proceeds of the loan without further obligations to the lender.
Some of the risks associated with taking stock-based loans include dumping of the borrower’s collateral into the open market by the lender and failure to return a borrower’s stock at the end of the transaction period. However, Equities First Holdings prides itself as a firm that upholds integrity and transparency at the same time giving the client maximum benefit at minimal risk. This is the main reason why the customer base of this firm is expanding by the day.Equities First Holdings guarantees you speed, efficiency and flexibility; all rare when it comes to capital.