Equities First Holdings, LLC has provided customers with alternative financing solutions by supplying capital against publicly traded stocks to help clients achieve their professional and personal goals. The financial firm has been in operation since 2012 and continues to support customers across the globe. EFH has completed over 650 transactions worth over $1.4 billion to date.
Equity First Holdings is a global entity with offices in nine countries, including Equities First (London) Limited, Equities First Holdings Singapore Limited, Equities First Holdings Hong Kong Limited, and Equities First Holdings (Australia) Pty Ltd.
Equity First Holdings See Increased Stock-Based Loans
Equities First Holdings is experiencing more traction in stock-based loans and margin loans when other financial institutions and banks are tightening lending criteria. For borrowers who look to raise capital quickly or those who may not meet the requirements of conventional credit-based loans, the equities lending is rapidly becoming a popular alternative.
Al Christy, Jr. the Founder, and CEO of EFH sees this form of lending as an innovative financial solution with higher loan-to-value ratio than the margin loans in addition to offering fixed interest rates throughout the duration of the transaction.
Difference between Margin Loans and Stock-Based Loans
With a margin loan, the borrower has to be pre-qualified, just like the conventional bank loan. The provider may need the details of where the money will be used. The interest rates are always variable, and you can expect loan-to-value ratios of between 10% and 50%. Furthermore, the lending institution may liquidate the borrower’s collateral in the event of a margin call without warning to the borrower.
On the other hand, stock-based loans offer the borrowers a fixed interest rate of between 3% and 4% and loan-to-value ratios of 50% to 75%. There is no restriction on the purpose of the loan, and you can use it for whatever purpose. The stock-based loans are also non-recourse, which means that the borrower can walk away with no obligation, even when the collateral stock values have depreciated.
Christy, however, notes that no financial transaction is without risk. Historically, some unscrupulous lenders have dumped borrowers stocks unceremoniously into the open market or failed to return stock upon maturity of the transaction. Equity First Holding has established itself in this venture with integrity and transparency, winning the trust of many investors across the globe.