With its headquarters in Indianapolis, Indiana, Equities First Holdings LLC was founded in 2002. Since then, the company has been offering alternative financing solutions to their clients. It supplies capital against the publicly traded shares to enable their clients to meet both personal as well as professional goals. To-date, EFH has done over 650 transactions, offering customers loans at low-interest rates.

EFH is an international company. It has offices in nine countries including London, Hong Kong, Indianapolis, Singapore, Sydney, Bangkok, and Perth.

Their loans are based on their evaluation of risks as well as the future performance of bonds, stocks, and treasuries on the market.

Equities First Holdings record a growing trend among stock-based loan borrowers

Equities First Holdings- a global leader and lender in alternative financing solutions has witnessed increased traction in stock-based and margin loans in an economic environment where lending criteria has been made tighter in banks and other institutions. Equities First Holdings is quickly gaining popularity as a possible alternative for borrowers who need quick capital or those who do not meet the qualifications for a more conventional credit-based loan.

While there are many options for these individuals, lately, many banks have tightened their loan qualifications, increased interest rates and cut their lending options.

Al Christy, Jr, the CEO and founder of EFH, thinks that loans collateralized by stocks are innovative borrowing alternatives for people seeking working capital.

Ideally, the loan-to-value ratio of stock-based loans is higher compared to that of the margin loans. Stock-based loans also have a fixed interest rate, and this provides the lender with certainty throughout the lifespan of the transaction.

Unlike conventional loans which are bound to be affected by fluctuations in the market, stock-based loans provide a buffer. This is because borrowers lower their risks of the investment in a disadvantaged market.

With more stock-based loans, there is a way out and borrowers can walk away from a loan at any time, even if the value of stocks depreciates. The borrower is allowed to keep the initial proceeds of the loan with no further responsibility to the lender.

 

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