Equities First Holdings, released a report just recently, stating that there is more traction in the margin and stock-based loans in the modern economic climate where almost all the lending institutions have decided to tighten their lending criteria. There is a group of borrowers who are looking to raise operating capital quickly, and they are finding themselves with very few options. Individuals who have not qualified for the conventional credit-based loans have few options too, and equities lending is the best alternative that is gaining popularity in the recent times.
Several options are still available for this particular group of people. However, most of the banks and lending institutions have cut their lending options significantly for borrowers, increased their loan rates and even tightened the credit qualifications due to the harsh economic times. These institutions want to safeguard their capital at the expense of the borrowers.
Equities First Holdings was founded by Al Christy, one of the individuals who have a lot of expertise in equities lending. In the report, Christy says that the loans that are collateralized by stocks are proving to be the innovative borrowing alternative, especially the group seeking working capital. Christy also states that these loans have a higher loan to value ration compared to the margin loans. The loans are loved by entrepreneurs because they provide consumers with a fixed interest rate. This provides certainty to the customers concerning the loans throughout their transaction life.
For instance, if a client gets a three-year loan, it would be impossible to avoid market fluctuation, and the customer will definitely be affected. However, the stock-based loans provide the customer with a hedge due to the fact that the borrower lowers their investment risk in the downside market. Christy believes that these loans offer consumers the protection needed, especially for individuals who need the loans for capital.
Equities First Holdings is an international company that is offering customers alternative stock-based loans. The company has very transparent procedures, and all its clients are given the best services. The stock-based loans from the company are easy to process, and they take the shortest time.