Equities First Holdings is a worldwide creditor and a leader in alternate stakeholder financing solutions. It offers commercial and non-financial solutions to companies and individual investors alike. They provide risk evaluation and take stocks, bonds, and treasuries as the guarantee. They also give non-financial solutions to individuals with high net-worth.
The company is seeing people transitioning from the conventional borrowing system to margin and stock-based loans. The pull is because the conventional way of borrowing which involves banks and other financial institutions have raised their lending criteria.
EFH sees a new brilliant way to attract individuals who need to raise capital quickly and don’t meet the qualifications of conventional ways. They have done so by allowing a borrower to use his/her stocks as collateral for the loan.
People think of stock-based loans and margin loans as identical, but this isn’t the case. When applying for a margin loan, the borrower must be pre-qualified and may require the money for an unambiguous purpose. Furthermore, the financial institution may liquidate the debtors’ assets at any time without warning during a marginal call.
Compared to stock-based loans, marginal loans have a lower loan-to-value ratio. The interest rate of stock-based loans is fixed and small. It can also be used for any purpose the borrower wishes. The most brilliant aspect of stock-based loans is that they are non-recourse. It means that the debtor can walk away without any duty at any time, albeit the stock value has fallen. Equities First at LinkedIn .
According to Al Christy Jr., the CEO of EFH, stock-based loans have traditionally been ignored due to the huge number of dishonest lenders. They have failed to return bonds upon maturity, cast off borrowers’ shares into the open market and failed to address other issues. However, Equities First Holdings is built on the principles of honesty and transparency. They also seek the advice of trading, regulatory and legal institutions.
There are many investors whose businesses fail to take off due to lack of capital. EFH is the solution for them since it’s efficient and quick. They offer margin stock-based loans like no other institution as their process of qualification is simple. As long as the debtor has sufficient shares to put up collateral, then he/she qualifies for a loan. The company also has over a decade’s worth of experience and has served thousands of clienteles.