Equities First Holdings, LLC provides lending services based on securities for individuals and business investors. They offer loans based on their automatic evaluation for future performance and associated risk with Treasuries, bonds, and stocks. In 2002, this company was funded. It has a satellite office in New York. However, its main offices are in Indianapolis.
Equities First Holdings, LLC is foreseeing more traction in stock-based loans and margin loans in an economy where lending institutions and banks have a tightened lending criterion. For borrowers in need of necessary capital for credit-based loans, equities lending has grown to be popular.
While these people have other options, many banks have tightened loan qualifications, cut their lending options, and amplified interest rates. CEO of EFH, Al Christy, sees that the stock-centralized loans as a modern loan alternative for those in need of necessary capital.
During a two-year loan term, the investment risk is lowered through the hedge given by the stock-based loans. Stock-based loans are flexible and allow borrowers to dump it, even when their value depreciates. The borrower can keep the proceeds without any obligation to their loaners. Moreover, some consider stock-based and margin loans to be synonymous. Here are marked differences even though they use securities for collateral.
The borrower must be pre-qualified with a margin loan. They may also require that the funds be utilized for a purpose as with banks. There are variable interest rates, and the borrower expects ratios between 10 – 15 percent. In the event of a margin call, the lending firm can liquidate the loaner’s collateral with no warning.
With these loans, borrowers expect higher interest and loan-to-value ratio from 60 percent. There are no loan restrictions. This money can be used for any reason. For this reason, these loans are non-recourse. Therefore, borrowers have no obligation even when the collateral stock has decreased.
There is always a risk associated with any form of financial transaction. Many lenders have dumped these options. They are provided by stock in the past. Its mission provides maximum benefit to their customers.
for more info: equitiesfirst.com