Equities First Holdings is a private owned global company that was founded over a decade ago. It has offices in nine different countries including entirely owned subsidiaries in London, Hong Kong, Singapore, and Australia. Equity First Holdings specializes in providing clients with alternative financial procedures by loaning capital to allow clients fulfil their financial goals. They come up with the amount that they can loan based on their assessment of the future performance and risk involved with the treasuries, stocks, and bonds. The company has managed to do over 700 transactions since it was established.
Equity First Holdings can be considered more suitable for clients who need to raise capital immediately or who may not be qualified for the standard credit-based loans. Although there might be other alternatives for these individuals, banks have made it unfeasible for them by increasing interest rates and tightening loan qualifications.
The founder and CEO of Equity First Holdings- Al Christ Jr sees collateralizing loans by stock as a creative alternative borrowing procedure for individuals looking to come up with capital. He says that since the market will definitely fluctuate within three years that a loan is issued, the loans that are stock-based offer a hedge since it enables the borrower to lower investment risk when the market fluctuates. Majority of these stock-based loans have a non-recourse quality which makes it possible for the borrower to walk away from a stock loan any time even when the value of the stock depreciates.
As noted by Christy, margin and stock-based loans are deemed to be relatively the same, but that is not the case .With a margin loan, the client in question needs to be pre-qualified; you may also be required to utilize the money for a specific purpose. Their interest rates fluctuate and the client should expect loan-to-value ratios ranging between 10 and 50 percent. In addition, the client may have his or her collateral liquidated by the lending firm without any notice. However, stock-based loans typically have a higher loan-to-value ratio compared to margin loans and they provide a fixed interest rate, which gives certainty throughout the transaction process and more information click here.
Equities First Holdings assures their clients of institutional security. Every transaction is carried out using industry conventional procedures and trusted legal and accounting partners and learn more about Equities First.