Leader lender and financing solutions provider, Equities First US has the financing solutions for borrowers who are seeking capital or rejected by conventional loan providers. After the 2008 mortgage crisis that resulted in stricter federal lending regulations, lenders have implemented tighter restrictions to qualify for loans. Equities First is offering an alternative solution using stock as the source of collateral to secure working or personal capital. It’s an innovative alternative for borrowing today and offered with a fixed interest rate to provide certainty of the transaction’s life. This type of loan has its benefits for borrowers, including hedging to keep investment risks at its lowest and a non-recourse action.
Al Christy, President and Founder of Equities First US established the company in 2002, in Indianapolis, Indiana and has expanded global. The firm has a New York City satellite office and office locations in Singapore, Hong Kong, London, Bangkok, Perth, and Sydney. For 15 years, Equities First is providing securities collateral lending services to net-worth individuals, global corporations’ executives, and companies. Between 2013 and 2016, its yearly growth was more than 30 percent, closing approximately 625 loan transactions valued at more than $1 billion.
Equities First US alternative shareholder financing solutions includes margin loans and stock-based loans. Both loan types require securities for collateral, but have different characteristics. Stock-based loans are offered with a fixed interest rate, whereas, and margin loans use variable interest rates.Because stock-based loans are non-recourse, the borrower can walk away from the stock loan and keep the initial loan proceeds without further obligations. Margin loans and conventional bank loan have similar characteristics; such as pre-qualification requirements and restrictions on how the lending capital can be used. If there’s a margin call, the lender can liquidate the collateral of the borrower without forewarn notice.