In recent years, businesses and individuals have continued to witness increased difficulties in obtaining loans from the banks. With many banks cutting lending options for borrowers, increased interest rates, and stricter loan qualifications criterion, it could not have gotten any worse. For this reason, businesses and individuals in need of working capital solutions have turned to stock-based collateralised loans offered by companies like Equities First Holdings.
Equities First Holdings is a global lender, as well as a leader in the provision of alternative shareholder financing solutions. It has offices in nine countries. This includes wholly owned subsidiaries in London, Hong Kong, Australia and Singapore. EFH has been in business for 14 years and its still growing. During this time, it has completed over 650 transactions valued at $1.4 billion and above.
The founder and CEO of EFH, Al Christy Jr., see it as an innovative borrowing option for borrowers who cannot access bank loans. The company provides loan solutions against publicly traded stocks to permit the borrowers to achieve personal or professional goals. People and businesses with shares traded on public exchanges across the globe can substantially benefit from this option.
This alternative financing solution has its advantages compared to the conventional loans. For instance, EFH solutions guarantee a high loan-to-value ratio of 50%-75% which is way much better compared to 10%-50% associated with conventional bank loans. Combine this with the fixed interest rates, and the fact that borrowers can use the money obtained in whichever way they want. Another advantage of stock- collateralised loans is the absence of a non-recourse feature. The borrower may abandon the loan anytime irrespective of the value of stock then. It also means that the borrower may keep proceeds from the initial loan without any more obligations to the Equities First Holdings. Many global companies and high net-worth individuals have reaped significant benefits from EFH financing solutions.