UPDATE: November 2, 2016–
*Equities First has just announced that they have concluded a transaction with the CEO of ANGLE plc. Details here: http://sports.yahoo.com/news/global-lender-equities-first-holdings-074500900.html
Equities First Holdings (EFH) has recently experienced a rampant increase in the demand for margin and stock-based loans. This is attributable to the tightening of the lending criteria by banks and other financial institutions. Those that do not meet the stringent requirements of non-conventional loans and need to raise capital quickly are finding the stock based and marginal loans a suitable alternative. According to the founder and CEO of EFH, Mr. Al Christy, the stock-based loans also offer other advantages such as higher loan-to-value ratio and fixed interest rates.
Al Christy has also noted that most people consider the terms marginal loans and stock-based loans to mean the same thing despite their clear-cut differences. Marginal loans are characterized by the need for the borrower to be pre-qualified, the condition that money is put to a particular use, variable interest rates, loan-to-value ratios of between 10 and 50 percent and liquidation of borrower’s security without notifying the borrower in the event of a margin call. On the other hand, stock-based loans are characterized by fixed interest rates, loan-to-value ratios of between 50 and 75 percent, no restrictions on how the borrower needs to use the money and are non-recourse.
Despite the many benefits that stock-based loans have to offer, historically many people did not see them as a viable borrowing option. According to Mr. Christy, this was because of the existence of many unscrupulous lenders that often failed to return the borrower’s stocks upon maturity of the transaction. Equities First Holdings strives to give the equities lending business a good name by operating in line with the legal obligations with utmost integrity and transparency. Its mission is to offer its clients maximum benefits at the lowest risk possible.
About Equities First Holdings
Equities First Holdings started its operations in 2002. Its primary form of business has been providing alternative financing solutions to assist its clients achieve their dreams. In this regard, EFH offers loans against publicly traded shares.
Business for EFH has been great since its inception as shown by its ability to complete more than 650 transactions. It has also managed to have offices in nine countries and wholly own subsidiaries. EFH’s subsidiaries are Equities First (London) Limited, Equities First Holdings Singapore Limited, and Equities First Holdings (Australia) Pty Ltd and Equities First Holdings Hong Kong Limited.
http://www.equitiesfirst.com/ for more information.