Are You thinking of using Stock as Collateral? Try Equities First
Equities First is a company that provides some services to entities that are seeking non-purpose capital. They mainly provide their services to businesses and individuals with a high net-worth. Services that they provide include lending solutions and supplying liquidity to their clients. They do this by providing capital against stock that is publicly traded. A customer can get a loan through the stock that they own. The company is also a global lender and supplies capital on shares that are traded in markets all over the world. The company works with every client to provide an offering that suits their needs. Equities First has done a good job for customers that it has worked with in the past. It has done more than 600 transactions to date. They amount to $1.4 billion.
The method that the company uses has been heralded because it comes at a low cost and the financing terms are favorable. Borrowers using stock as loan collateral has grown in recent years because of the advantages that it has over other means of financing solutions. Individuals can acquire financing quickly. They can get a loan even if they do not have access to credit-based loans. Banks have started to tighten their lending criteria. This has made it easier to become ineligible for certain types of loans. The interest rates are lower than those that the banks offer. They have a fixed interest rate which means that there is assurance of the total sum that is to be paid.
Stock-based loans are favorable to the client because they move their investments away from a market that is considered to be a downside. This is because the value of a stock might fall at any time and the value of their stock investment goes down. Stock-based loans such as the one offered by Equities First are not to be used for a particular purpose, unlike margin-based loans. The client is free to use it as they want. Most of the loans also have a non-recourse agreement where the client can back out of the loan at any time.