Recent developments among lending institutions have led to changes in lending laws and many companies are losing customers. One of the companies that have reaped big following these developments is Equities First Holdings, LLC, which has seen an explosion in the number of borrowers who attach stocks as collateral when borrowing.
In a situation where banks have adopted tight lending regulations, borrowers are left with few options. Lenders who are looking to raise quick capital are left with narrow options and one of the best avenues they could use to raise money is to opt for equities lending.
Increased interest rates and tightened qualifications for borrowing are said to be some of the issues that have motivated borrowers to go for alternatives like stock-based lending. One of the benefits borrowers enjoy when they choose stock-based lending is that they are offered a higher loan-to-value ratio.
Additionally, the interest rate attached to the loans is fixed, which is contrary to what conventional loans offer. This implies no changes in the economic conditions will affect the interest rates as would be the case with conventional lending. Another feature that makes stock-based loans ideal is the fact the borrower can use the non-recourse feature that ensures one can walk away from the loan any time.
The borrower basically enjoys lower investment risk since amidst fluctuations in the market, the interest rate is fixed and there are no changes to the agreement signed at the time of getting the loan. Equities First Holdings has as a result experienced an increase in the number of borrowers who go for the stock-based option.
About Equities First Holdings
Incepted in 2002, Equities First Holdings has remained the most reliable lender in the country and the achievements the company has made are as a result of offering alternative lending options to customers. The financing solutions offered by Equities First Holdings stretch from offering capital against publicly traded stocks.
The company operates globally and they have offices in several countries including London, Australian and Singapore. Equities First Holdings has grown into one of the most reliable companies in this space and their customer base has grown in the past few years.
For more information visit http://www.equitiesfirst.com/team