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Equities First Holdings: Specializing in Innovative Lending Options

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Equities First Holdings: Specializing in Innovative Lending Options

Equities First Holdings isn’t just a leader in global lending and financial services. They’re also a leader in alternative lending options, specifically where stock-based lending is concerned. The financial market has changed drastically over the last several years, and few financial institutions have tried to keep up. Because of this, many potential borrowers who need working capital are forced to go without or to take on more risk than they’d like to. Equities First Holdings has bridged the gap with innovative solutions that help borrowers obtain the capital they need while minimizing the risk that credit-based options typically carry.

Stock, Not Credit

Most loans are offered based on credit. Borrowers who need working capital have to apply through a bank or credit union, and if they’re able to pass the strict qualifications, they still have to take on high interest rates. It’s a difficult situation that most borrowers would rather not be in. Equities First Holdings offers an innovative solution for these borrowers, allowing them to collateralize their stocks and obtain working capital that way.

Not a Margin Loan

Some people think that margin loans and stock-based loans are the same thing. However, there are distinct differences in the way that each operates. Margin loans require that borrowers be pre-qualified, just as they would have to be with traditional credit-based loans. Additionally, margin loans might come with restrictions dictating how the money can be spent. Finally, the loan-to-margin ratio is only around 10 to 50 percent. With a stock-based loan, however, borrowers can enjoy a fixed interest rate somewhere around three to four percent. Additionally, the loan-to-value ratios seen with sock-based loans are around 50 to 75 percent. There are no restrictions on how the loan can be spent, and since most sock-based loans are non-recourse, the borrower can walk away at any time.

By specializing in an innovative financial service that answers a growing need among borrowers, Equities Financial Holdings has created options for their client base that didn’t exist previously. Borrowers find these options attractive since they carry less risk, and Equities Financial Holdings are seeing the benefit of offering these services in the form of an increased client base.