Equities First Holdings: Making A Difference In Lending

According to a recent online article on Marketwired.com, Equities First Holding is having more action in loans that are margin or stock-based. This may be because banks are so strict these days about their lending criteria, says the article. Some borrowers who need loans may not qualify for conventional loans. They are seeking out financial institutions that provide equity lending.

Because the market has been so difficult for a while, banks have less lending options for their customers, says the article. They have increased the qualifications for a loan as well as interest rates. Al Christy, Jr. is the founder and CEO of Equities First Holding. He says in the article that loans can use stocks as collateral for people who need working capital. These types of loans usually have a fixed interest rate and have a higher loan-to-value ratio. It has better terms than a margin loan has.

Christy says that the market will probably fluctuate during the term of a typical three-year loan. However, he says, loans that are based on stocks make a hedge. In a downside market, borrowers are lowering their risk. According to the non-recourse features that are part of stock-based loans, the borrower can leave the loan at any time. It does not even matter if the stock lowers in value, says the article. The borrower can keep the loan and have no more obligation to the lender.

There are differences in stock-based loans and margin loans that Christy explains in the article. They both use securities for their collateral; however, borrowers must be pre-qualified before getting a margin loan. They are usually required to have a certain purpose for the money. Loan-to-value ratios are lower and interest rates are variable. With a margin loan, the lender can suddenly liquidate the collateral without warning the borrower, Christy says.

Stock-based loans have low fixed interest rates., says Christy, and a higher loan-to-value ratio. They lender will not tell the borrower where to spend the money. Also, the borrower is free to walk away from repayment at any time without recourse, the article says.

Christy explains that there are risks with any financial transaction. Because some lenders have failed to do stock loans correctly, these types of loans have not been used as much. Thanks to the integrity of institutions like Equities First Holdings, stock loans are increasing as viable borrowing options. Christy says that the company’s goals are to offer top benefits at the lowest risks possible so their clients can meet their own financial goals.

For nearly 15 years, Equities First Holdings, LLC has given clients the options of different financing solutions. They have used client’s publicly traded stock as collateral for loans. It has allowed their clients to meet their financial goals. Equities has made stock loans to clients all over the globe.

Currently, the company has made more that 650 transactions that total over $1 billion. There loans have low fixed interest rates and high loan-to-value ratios. Equities First Holdings has offices in nine countries, including their base in the United States.

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