Equities First, www.equitiesfirst.com, was found in 2002, and its headquarters is located in Indianapolis, Indiana. They also have a satellite office in New York. This company specialize in capital allocation, alternative finance solutions, and financial services in which they provide lending services based on securities for individual investors and businesses. They offer loans based on the risk evaluation and future performance associated with bonds, treasuries, and stocks.
They have an unique approach to non-purpose funding that resulted in over 625 transactions so far that is worth over $1.4 billion, and their distinctive funding technique offers many of their clients better financing terms and a high loan to values of lower capital costs than many traditional financing alternatives offer. They offer capital against shares traded on public exchanges globally. And furthermore, Equities First has a global operational network of offices located in London, Hong Kong, Singapore, Sydney, Perth, and Bangkok.
In Recent News
During the summer of 2016, Equities First reported seeing a growing trend among borrowers using loan collateral for securing working capital. Since the lending options for borrowers are more reduced at a lot of banks due to increased interest rates and stricter loan qualifications, loans are being collateralize by stocks as an alternative of innovative borrowing for individuals pursuing working capital.
With these stock based loans, there is a higher loan to value ratio than the margin loans. These loans also provide a fixed interest rate, offering certainty throughout the transaction’s life cycle. Throughout a three year term of other loans, there will be market fluctuations. However, stock based loans offer a hedge because the borrower is reducing his/her risk of investment in a downside market.
Borrowers can expect a fixed interest rate around 3 to 4 percent with these stock based loans. Also, the loan to value ratios range from 50 to 75 percent. Other benefits of these loans include the fact that there is no restrictions on these loans, thus allowing the money to be used for any reason, and there is no recourse. This means that borrowers can exit the loan with no obligation even if the collateral value stock value has increased.
Equities First is the way to go in securing alternative financing with lesser risks. They specialize in capital allocation, alternative finance solutions, and financial services. And with over 625 transactions worth over $1.4 billion so far, they have proven to be a great benefit to their clients.