Benefits Of Stock-Based Loans To Borrowers

Equities First Holding has reported an increased number in terms of margin loans and stock-based loans. The global lender believes that this increase has been caused by tighter lending criteria among traditional banks. Stock-based loans have come to the rescue of the people who do not qualify for the traditional credit-based loans, but would like to raise capital quickly.

 

Besides, banks have increased their interest rates and tightened qualifications for loan. For Equities First Holdings’ founder and CEO, Al Christy Jr., using stock as collateral has numerous benefits to borrowers. Because of higher loan-to-value ratio, an individual can raise more capital from the same value of assets. The borrowers also get to enjoy fixed interest rates on the loan, which provides certainty throughout the life of the loan. This information was originally reported on Market Wired as provided in the following link http://www.marketwired.com/press-release/global-lender-equities-first-holdings-sees-growing-trend-among-borrowers-who-use-stock-2141671.htm

 

With stock-based loans, borrowers may also get to enjoy a non-recourse feature. This particular option allows borrowers to walk away from a stock-based loan at any time, regardless of the current value of stocks. If the borrower chooses to follow that route, he or she will keep the initial loan proceeds without any obligations to the lender.

 

Unlike conventional bank loans that require one to pre-qualify and request money for specific purposes, stock-based loans do not require pre-qualification. The borrowers have the ultimate freedom to invest in whatever they like without having to explain themselves to the lender regarding the purpose of the credit.

 

About Equities First Holdings

Equities First Holdings was established in 2002 to provide lending solutions for businesses and high net-worth individuals seeking non-purpose capital. These unrestricted loans enable the borrowers to satisfy both their professional and personal goals. As per the company’s terms and conditions, the stocks are reverted to the borrower as soon as he or she completes repaying the loan.

Over the last few years, the number of investors seeking loans from the lender has exponentially increased. According to the figures from EFH, it has completed over 650 transactions. The loans are estimated to be worth over $1.4 billion. This information was originally published on Equities First as explained in this link http://www.equitiesfirst.com/