Equities First Holdings specializes in financing solutions for alternative shareholders. Considered to be a global leader they are experiencing more traction in both stock-based and margin loans. Many banks and institutions have tightened their criteria for offering loans because of the current trends in the economic climate. For individuals unable to raise the capital they need or who do not qualify for a conventional loan Equities First is becoming quite popular.
Although there are some options available for these borrowers, a lot of banks have made cuts to their options for lending and interest rates have become higher. Al Christy Jr. is the CEO and Founder of Equities First. He believes stocks are an alternative for collateral on a loan. He says although there will be fluctuation in the market during the course of a three-year loan stocks allow the individual to lower their personal risk when the market is down.
In order to receive a margin loan the borrower has to first be pre-qualified. The money must also be used for a specific reason. Interest rates vary but the borrower will pay a ratio between ten and fifty percent. In the case of a margin call the firm lending the money may liquidate the collateral of the borrower.
Stock-based loans generally have a rate of interest between three to four percent. The ratio will be fifty to seventy-five per cent. This type of loan does not have restrictions. A borrower has the ability to simply walk away even if stocks value has dropped.
According to Christy most forms of financial transactions do contain some kind of risk. He feels the stock-based loans have been mostly ignored throughout history. This is because unscrupulous lenders have just dumped the collateral of a borrower right on the open market. The borrowers stocks have not been returned after the transaction reached its maturity.
Christy has built Equities First on integrity and he uses legal as well as trading and regulatory institutions when he needs counsel. This is what allows the company give their clients the maximum benefit and the least possible amount of risk. He wants his clients to succeed in achieving their financial goals.
Visit http://www.equitiesfirst.com for more.