Equities First Holdings, LLC, is one of the world’s largest providers of stock-based loans, an alternative to traditional lending. Ever since the financial crisis in 2007, alternative traditional lenders have been tightening the lending criteria that they operate under. This has led to a great deal of small and mid-sized business owners being unable to attain a traditional loan because they no longer qualify. Financial products like a stock-based loan provide them with a way to get needed capital by having the loan backed up by stock in their company.
Al Christy, Jr., the Founder of Equities First Holdings and its Chief Executive Officer, has said that this tightening of conventional loan criteria has led to a growing trend of business owners using his company to acquire capital. He has also said that stock-based loans have a number of attractive qualities that people are now learning about.
The typical stock-based loan is for three years. During that time, his company holds the agreed upon amount of stock in the company. This provides the owner of the business with a hedge as it reduces their investment risk in case the value of their stock goes down. Another benefit of a stock-based loan is that they feature better interest rates than traditional loans and the holder of the loan can walk away at any time.
The types of clients that are attracted by Equity First Holdings is those company’s that can’t meet today’s loan criteria. Other company’s that want a stock-based loan are those who want to raise non-purpose capital; with a traditional loan you can only borrow money for a specific purpose but that is not the case with a stock-based loan.Equities First Holdings was founded by Al Christy, Jr. in 2002. The company specializes in providing clients with alternative financing options.
Creative Solutions To Financial Woes
The recent financial crises have led to many individuals and companies facing dire circumstances. Obtaining a loan in the current economy is a difficult task. Without a particular high credit score conventional margin loans are next to impossible to obtain. This has led lenders to search for creative ways of working around these challenges. Equities First Holdings is looking to shake things up with a new form of the collateral loan. Instead of focusing on the credit score of its client.
Equities First uses financial investments to secure loans. This unique enables Equities First to offer its clients something they wouldn’t find anywhere else. Despite recent market conditions the majority of lenders focus on margin loans, but the hard work of Equities First Holdings is proving that more lenders should consider looking outside the box.
The Pros Of The Stock Collateral Loan
Using stock as collateral for a loan offers a number of serious advantages to borrowers. Obviously, the lender does not need to review the credit score of the borrower or consider the history of a borrower in any significant way. Another advantage of using stock to secure a loan is the ability top provide a client with a larger loan with lower interest rates than one can typically get with margin loans. Equities First offers their clientele, which includes some of the largest companies in the world, an opportunity unlike anything else.
A Model Of Success
Founded in the early 2000s Equities First Holdings specializes in offering its clients loans secured with securities. This approach allows the company to provide low interest loans to its customers regardless of credit history. The clientele Equities First serves run an impressive gamut.
There are startups involved in commercial enterprises and there are individuals looking for some help with personal pursuits such as housing mortgages. Borrowers come to Equities First to find loans they would not have access to through other lenders. Thanks to their unique approach the company now operates in countries across the world and generates billions in revenue.