Equities First Holdings is an innovative leader in the financial industry. More specifically, Equities First Holdings, a global lender, is a leader in alternative financing solutions for those who own stock. Recently, they’ve seen an increase in margin loans as well as loans based on stock. What’s the reason for this increase, and why is Equities First Holdings‘ idea so attractive?
The financial climate isn’t what it used to be. With banks tightening their lending criteria, it’s hard for borrowers to find options that will allow them to raise the money they need quickly. This is especially true for those who don’t qualify for traditional credit-based loans. Considering this, it’s no surprise that equities lending has become such an attractive option for shareholders who need to raise capital.
Banks have not only tightened their lending criteria, they’ve also cut lending options and increased interest rates. While options do exist for the type of borrower mentioned above, following through with a traditional credit-based option can be stressful given that there is so much risk involved. That’s why Al Christy, Jr., the Founder and CEO of Equities First Holdings, thought that collateralizing stocks would be a unique and inventive borrowing alternative for those needing working capital.”During a typical three-year loan term, market fluctuation is inevitable, but stock-based loans provide a hedge because the borrower is lowering his or her investment risk in a downside market,” said Christy.
As the financial market continues to evolve and change, it’s important for borrowers to have multiple options. While stock-based loans are still relatively new, they’re attractive to many people because of the fact that they don’t have to deal with the astronomical interest rates and major risk associated with credit-based loans.
What’s more, stock-based loans might be the only alternative for someone who doesn’t meet the strict qualifications most banks and financial institutions now place on those applying for a loan. Equities First Holdings is a leader in their field because of their ability to tap into this need and create innovative and progressive solutions for their client base.