Equities First Holdings, one of the most reputed global loan providers, recently stated in a report that it is witnessing a growing trend among the borrowers to keep equities as collateral to secure the loan. It is primarily because the economic situation across the globe has deteriorated in the past few years, and the banks have shrunk the credit lending criteria, making it difficult for many of the borrowers to get loans easily.
It is these, and other economic factors have made equities loan an attractive option for the people, especially because the conventional loans are just getting harder to get. The alternative option in the form of equities loan is a much-preferred option for most of the people and organizations.
Getting working capital for businesses is essential from time to time, and it is needed at a time when unusually long delays might lead to losing of opportunity. However, stock-based loans are accessible and provide easy access to liquidity while not having to liquidate the stocks. High interest charged by the banks is also one of the reasons why the borrowers are looking for alternative loan options. Most of the banks and other lending institutions have increased their lending interest rate, which has made conventional loans considerably expensive.
The margin loan and stock-based loans are a good option for borrowers, depending upon their credibility, purpose of the loan, and so on. Equities First Holdings LLC specialty is offering non-purpose loans to individuals and organizations. However, to avail the margin loan, the borrower needs to show a purpose of the loan, which is not the case with the stock-based loan. Equities First Holdings LLC aims to provide quick and easy access to finance for the corporations and high net worth individuals, who are seeking a non-purpose loan or working capital for their business.