Category Archives: Loans

Equities First Finding Alternative Financing

As lending qualifications tighten, with banks or other lending institutions, more borrowers are finding it difficult to qualify for a conventional loan, based on their credit. Borrowers who need to raise capital in a hurry but do not qualify for a conventional loan are increasingly turning to margin loans or stock-based loans.

Stock-based loans, as a rule, have a higher loan to value ratio and a fixed interest rate, providing stability for the duration of the loan. Typically, a stock-based loan will be for three years. As markets go up and down, the borrower, protected because he or she is lowering their investment risk in a downside market. The borrower is allowed to walk away from a stock loan at any time even if the stock has lost value and will have no further obligation to the lender.

Margin loans are somewhat different. The borrower must be pre-qualified, the same as a conventional loan, but there must be a stated purpose for the loan. With a margin loan, the borrower can use the funds for any purpose even though the loan, secured by securities, is owned by the client. Interest rates will be variable, loan to value ratios will be lower, and the lender can liquidate the borrower’s collateral at any time.

Equities First Holdings is not your typical lending service. A traditional financial lending service will provide customers with assistance in securing a credit based loan. Equities First will assist in finding alternative financing solutions when a client is unable to procure a credit based loan from a bank or other lending institution. Equities First will help businesses and individuals in securing a loan, using stocks, bonds, and treasuries as collateral. Securing capital against publicly traded stock has made it possible for their clients to meet their personal and professional goals.

Founded in 2002 Equities First Holdings are a worldwide company headquartered in Indianapolis, Indiana. Today they have offices in nine countries to better serve their global market. To date, they have completed over 650 transactions, with a total value exceeding $1.4 billion. Equities First continues to offer clients high loan to value and fixed interest rates.

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