Differences between Margin and Stock-based Loans Offered by Equities First Holdings

Stock-based and margin loans are gaining popularity especially now that lending institutions and banks have tightened their lending policies. With the increasing interest rates offered by banks and lending institutions, borrowers are opting for margin and stock-based loans. Equities First Holdings is an organization that deals with margin and stock-based loans. Al Christy, Jr., the chief executive officer and chairman of Equities First Holdings noted the trend saying that they have realized more traction in stock-based and margin loans. They are becoming an attractive alternative for borrowers looking for quick capital or those who cannot meet the qualifications of conventional credit-based loans.

Christy also noted that most people think margin and stock-based loans are synonymous, which is not the case. He pointed out that margin loans require borrowers to be pre-qualified, just like with bank loans. Margin loans also require the borrower to indicate the particular purpose of borrowing the money. However, interest rates are lower than those of bank loans. Additionally, the unique lending institutions have the power to liquidate the collateral of a borrower without warning when a margin call arises. Stock-based loans, on the other hand, have no restrictions; therefore, a borrower can use the money for any purpose. They have a fixed interest rate. Additionally, stock-based loans are non-recourse; therefore, a borrower has no obligation even if the collateral stock’s value has decreased.

Who benefits from working with Equities First?

People and businesses can benefit from working with Equities First Holdings since they can access capital quickly without many restrictions. Individuals and firms that use equities as collateral can easily access loans, so they benefit greatly from Equities First. Additionally, other people who can benefit from working with Equities First are people who want flexibility with their capital.Equities First Holdings specializes in alternative financing solutions. The company specializes in providing capital against shares that are traded on public exchanges across the globe. Equities First Holdings who offers lending solutions to individuals and businesses. The firm has completed over 650 transactions since its formation in 2002.

Leave a Reply

Your email address will not be published. Required fields are marked *