Since banking and financial institutions implemented stronger lending qualification rules for collateralized loans. Equities First Holdings observes a new trend among investors. Collateral lending requires borrowers to put up assets, such as homes, land, or automobiles with equal or more value of the loan request. Investors who are low on capital to run their businesses are now using their stocks as collateral. Equities Holding has seen an increase in margin and stock-based loans which borrowers are using as alternatives to gain access to immediate working capital. The loan types are optional for businesses and investors who are denied loans based on credit status.
Margin loan is a type of loan that borrowers are required to pre-qualify, as with a conventional bank loan. The interest rates are variable and expectations of the value of the loan ratios is estimated between 10 percent and 50 percent. Investors and businesses use their securities as collateral. Lenders may have the right to liquidate the collateral if a margin is called without giving notice to the borrowers. Some lending institutions may place restrictions on how the money received from the loan is used.
A stock-based loan has a higher loan to value ratio compared to a margin loan. The interest rate is locked end regardless of unfavorable economic conditions. The loan type is favorable because the borrower can abandon the loan at any time, especially if the value of stock depreciates. Borrowers are under no obligations to repay the initial amount of money received from loans. Interest rate for stock-based loans are normally fixed between three and four percent with loan to value ratios at 50 percent up to 75 percent.
Equities First Holdings, LLC is a leading securities lending services provider of margin and stock-based loans to investors, companies and corporations. Al Christy Jr. founded the limited liability company in 2002 and serves as president.
Equities First is headquartered in Indianapolis and runs a satellite office in New York City. Equities First has expanded its offices to Bangkok, Hong Kong, Perth, London, and Singapore. Its global growth is spectacular considering Equities First is a startup company with only four years in operation.
For more information please visit http://www.equitiesfirst.com/