Equities First Holdings, LLC is an alternative shareholder financial solution provider based in the United States. The company has announced its recent finding. According to the company, there is an increasing trend among the stock-based loans as a way of securing fast working capital among companies. The asset-based loans are here to stay. For the company, they are also gaining popularity as a primary source of the stock-based loans. The company is looking forward to acquiring major markets through their particular markets and have presences in every country in the world. For this reason, they are keeping up with the trend.
While there are still many other options in the world for people seeking working capital, the stock-based loans have gained traction over the past few years. While the economic crisis is still tightening in the world, bank and other large financial institutions have tightened their loan qualification criteria. For this reason, they have also increased the interest rates on acquired loans.
The Founder and Chief Executive of Equities First Holdings Company, Al Christy, said that the company had sought the innovative way to make this capital available for their customers at the lowest rates in the market. There is an associated higher loan-to-value ratio with the stock-based loans. For those who are seeking the alternative loans with the company, you are expected to enjoy low-interest rates of three percent. For all the transaction life, you are scheduled to benefit from the proceeds of the non-recourse feature loans.
During a three-year term, there is an inevitable market fluctuation of the stocks. However, the asset-based loan provides you with a hedge because you will have a small investment risk in the market. According to the Founder and President of Equities First Limited, most of the stock-based loans have a non-recourse feature. For this reason, you can walk away from the loan without having an obligation to the lender and enjoy the proceeds of your loan. The borrower keeps the first proceeds.
Al Christy notes that many people cannot differentiate between the margin loans and the stock-based loans. According to him, the two loans are not synonymous. While the two forms of loans use associated stocks to secure working capital, they are many differences. The borrower must be pre-qualified with the margin loans. They must also state the intended use of the loans as a way of qualification. On the other hand, stock-based loans have a higher loan-to-value ratio.