Equities First is a financial institution offering securities-based lending products to its clients, both individuals and business alike. For 15 years, the company has been providing financial services, and their business model has been credited for its growth over the years. The company prides itself in having successfully offered over 700 transactions and expanded its operations through its 9 global offices. This translates to over $1.4 billion in the value of the transactions. Equities First’s operations are overseen at the company headquarters in Indianapolis, in Indiana, USA.
Its global focus has allowed the company expand its client base as well as diversify its products. Due to this, the company has been able to penetrate the equity market that banks do not venture in. An example would be borrowers seeking capital but are unqualified to receive the credit-based financing. Equities First has filled the gap by offering stock-based loans. Clients have been able to meet their professional and personal targets thanks to the financing they receive against the publicly traded capital.
The business model adopted by Equities First is unique. The stock-based loan product is not new. However, Equities First Holdings is changing the rules. As a private equity firm, the company is able to offer 80% of the value of stock to the borrower as loan. Most companies are legally allowed up to a 60% threshold. In the event the stock performs better than expected, Equities First refunds the entire collateral and the borrower takes the extra profit. In the event the stock underperforms and is lower than the 80% mark of the loan’s value, the client pays the deficit to the 80% mark for the loan to be considered as out of the default status. In other situations, the client has the choice of abandoning the loan and the stock altogether.
This business model has greatly helped individuals and business alike, and it goes without say, Equities First profits from the same.