One global leader in the world of lending and alternative shareholding financial solutions is Equities First Holdings, LLC(EFH). Lately, it has been seeing more traction in stock-based loans and margin loans. This has been accomplished in a financial climate where various institutions such as banks have made it harder to get loans by raising their criteria. Those who seek to borrow usually need to raise capital with haste. If they cannot, they may not be qualified for standard credit-based loans. As an alternative, many of these people are turning to equities lending.
There are a few options available to these individuals. However, banks have been cutting their lending options for these borrowers by increasing interest rates and tightening loan qualification criteria. The Founder and CEO of EFH, Al Christy, Jr., believes that that loans that have been collateralized as stocks can be a novel way of borrowing for those people who are looking for working capital. BusinessWire News Here.
Market fluctuation is a normal thing according to Christy. It happens over a period of three years with regularity. A hedge can be provided for people by stock-based loans. This is because the borrower is taking a lower risk option for when there is a downside market. The borrower can walk away from the loan at any point they wish because of a non-recourse feature that lets them do so. They can do this even if the value of their stock depreciates. This is a wonderful option to have because the borrower can keep the proceeds from the loan without having any kind of obligation to the institution who lent them the money. Click Here to contact EFH .
There are people who think that stock-based loans and margin loans are the same thing. Both of these forms of lending have securities as their form of collateral but, there are meaningful differences between them.
http://www.equitiesfirst.com/ for more.