Alternative ways to raise capital are becoming more attractive to both institutional investors as well as high net worth individuals. These stock-based loans provide a quick and seamless way to borrow money in a compressed time frame. Equities First provides alternative loan options and has done so since 2002. In the elapsed time from their start, they have lent over $1.4 billion in 650 transactions. Equities First finds that their clients appreciate the shorter time period and less time-consuming due diligence process. With stock collateral, there is flexibility in raising collateral and there is generally a less rigorous vetting process and more information click here.
Stock loans also provide a bit of a market hedge as unlike margin loans there are no margin loans in the event that the collateral loses value. Other clients find the non-recourse aspect of equity loans most appealing. After the funds are distributed to the borrower, they can walk away without repayment and the lender will accept the stock collateral as payment. Stock loans are also created with a fixed interest rate, usually three or four percent, over the life of the loan. There are many reasons that equity loans are gaining in popularity. Non-purpose loans, however, cannot be used to carry, purchase or trade securities and learn more about Equities First Holdings.
The current financial environment has many banks tightening their lending parameters and requiring a higher loan to value ratio, increased interest rates, and stronger credit profiles than many borrowers are comfortable with. Equity loans are an alternative way to raise non-purpose capital and Equities First is well-established in this market segment and is able to provide the capital requested by their clients via stock loans. Understanding all capital options is a good way to strengthen one’s position when seeking funds and looking for the most suitable way to raise capital for their business needs and Equities First’s Linkedin.