Equities First Holdings – How It Is Changing The Loan Disbursment Industry?

After the global recession, in 2008, most banks and financial institutions around the world have tightened their lending criteria regarding loans to businesses and individuals. Besides, it is increasingly becoming common to face constant interest rate hikes and confront strict terms, which is raising concerns in the business community. To find other alternate funding sources, smart investors are turning to non-traditional institutions of funding.

As the CEO of a prominent alternate funding firm, Equities First Holdings, Christy Junior, explains that they are seeing a growing trend among borrowers to seek other methods, which will fund their growth. For instance, he pointed to the portfolio of services offered by his company, including stock-based loans, where the borrower can use the stock offering as a collateral to fund the loan. Unknown to many investors, the stock-based loans provide greater flexibility to almost all types of other funding substitutes.

For instance, the loan-to-value ratio of stock-based loans is much greater compared to traditional loans. A traditional loan has a loan-to-value ratio between 10 and 50 percent, which may not be sufficient for cash-stricken businesses or businesses that have extensive growth in mind. In comparison, loans collateralized by stocks have a long-to-value ratio between 50 percent and 75 percent. In addition to a higher loan value, stock-based loans are non-recourse, which means that borrowers do not need to compensate the financial entity even if the value of their stock offerings goes down. Similarly, these loans have a fixed rate, which is also low compared to other loans. In fact, the fixed rate allows borrowers to plan ahead because it does not correlate with the market movements.

As one of the leading firms in the industry, Equity First Holdings, has over 14 years of experience in distributing stock-based loans. So far, the company has completed more than 650 transactions for both high net-worth individuals and companies. As such, there are 9 global offices, which serve a variety of clients from different countries. According to experts, the success of Equity First Holdings is its highly personalized service offering, which caters to clients on a deal-to-deal basis. The resulting relationship offers client highly flexible loans terms and lots of pathways to secure the needed capital.

For more information please visit http://www.equitiesfirst.com/

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