Today’s economic climate is characterized by the tight lending criteria upheld by banks and other lending institutions. This is a blow to the borrowers who need urgent loans and do not qualify to borrow the same from traditional lenders. Financial Institutions have cut their lending options to clients. They have also increased interest rates and restricted loan qualifications. With this kind of environment, most borrowers are opting to use stock as loan collateral to secure working capital. Equities First Holdings (EFH), a global alternative lender, offers stock-based loans and margin loans. Christy, Jr., the founder and CEO of EFH, said that stock-based loans is an innovative borrowing option for those in need of working capital and learn more about Equities.
Compared to margin loans, stock-based loans have a higher loan-to-value ratio of 50-75 percent and offer fixed interest rate. With a fixed interest rate, borrowers lower their investment risks during market fluctuations. Christy explained that most stock-based loans allow a borrower to walk away from a stock loan at any time. On the other hand, margin loans interest rates vary from one situation to another. The loan-to-loan value ranges between 10 and 50. Margin loans require a borrower to use the money for a specific purpose. Christy argues that most borrowers ignore stock-based loans because lenders dumped borrower’s collateral into the open market, failed to return the stock when the transaction matured or were unable to handle other concerns and Equities First’s lacrosse camp.
Equities First offers businesses and high net-worth individuals with tailored solutions that facilitates quick and efficient funding. Once a borrower proposes a given collateral, the valuation process follows to determine if the request qualifies for a loan. Thereafter, the team determines the terms of the loan and calculates the involved rates. EFH has built the business on the foundation of transparency and integrity where they rely on leading legal, trading and regulatory institutions for counsel. The security-based loans that are offered by EFH gives borrowers the freedom to decide how to spend the money since they offer non-purpose loans. They guarantee secure and legal transactions, which uphold industry standards. The institution works with trusted accounting and legal partners. Clients are able to retain all the dividends and market appreciation when the transaction matures and this company of Linkedin.