As early as July 2016, Equities First Holdings, LLC saw a growing trend among borrowers who wanted to use stocks as collateral for loans to acquire working capital. The pioneering concept by founder and CEO Al Christy gives clients financing alternatives with low-interest stock loans and a streamlined process of applying for and obtaining funds. As a leader in global lending and alternative financing, Equities First Holdings, underpinned by a robust shareholders agreement, continues to provide attractive opportunities for underserved borrowers.
Offering Innovative Finance Options
As banks have started reducing the options available to borrowers, the qualification process becomes more difficult. Even when borrowers can locate a potential lender, the interest rates that loans carry can create an insurmountable barrier. The disparity between the availability of funds and a need for them provided an opportunity for Christy to offer a workable alternative that incorporates the concept that he originated in 2016. With an offer to collateralize a loan with stocks that help businesses obtain needed funds, he offers borrowers a fixed interest rate. The advantages of stock-based loans include a loan-to-value ratio higher than that of margin loans, a factor that increases borrower satisfaction.
Comparing Instruments
Equities First Holdings offers borrowers a stock-based instrument with a loan-to-value ratio of 50 to 75 percent and an interest rate that stays between 3 and 4 percent. Christy points to the restrictions that margin loans require, noting that a consumer must pre-qualify, wait for the approval and accept limits on the use of funds. Further, a margin call can create a potential liquidation of a borrower’s collateral. By contrast, stock-based loans with Equities First Holdings require no such restrictions, and borrowers have no obligation to repay any outstanding balance.
Even with their appealing attributes, stock-based loans do not have a record of high acceptance. Less than honorable practices by some firms in the past have discouraged borrowers from choosing them. However, they seem to have a brighter outlook in the current market environment. Christy’s determination to provide customers with the highest profits for the least risk helps them reach their desired goals. The efficacy of his approach has established Equities First Holdings as one of the most recognizable entities in the financial world. With offices in Australia, Bangkok, China, Hong Kong, Perth, Singapore, South Africa, the United Kingdom, and the United States, the company introduces an innovative lending style to the world. Borrowers increasingly abandon banks as lending sources and choose the Indianapolis, Indiana-based company that offers stock-based lending alternatives.
Expanding Ground-breaking Solutions
A decision to enter the business of repurchase agreements provided new opportunities for borrowers, and the Dubai Financial Market has approved Equities First Holdings as its first registered Repurchase buyer. The approval gives investors a path to liquidity without forfeiture of growth opportunities. The financial instrument that the Dubai market authorized allows Equities First Holdings to offer some appealing concepts for investors. It enables Repo buyers and sellers to conduct transactions that use a seller’s securities as collateral. At the expiration of a set amount of time, a seller may repurchase the collateral-based securities from the buyer at a previously established price agreed to by both parties. The Dubai Financial Market operates as a public institution with an independent corporate body, and it serves as a secondary market for securities trading by a range of entities.
Creating a Remarkable Path to Success
From its founding in 2002, Equities First Holdings adopted the values of patience, discipline, and integrity, a philosophy that has brought the company to a position of leadership in the financial world. A belief in the importance of teamwork among all stakeholders provided a foundation for the company to conduct business in a uniquely different way from other financial institutions. In a harmonious relationship with the cycles that exist in the market, the company has shown that its business model works exceptionally well.
In only 15 years, the company completed more than 700 financial lending transactions that adhered to the concept. Also, it created an influx of approximately $1 billion into American markets while it partnered with exceptional companies around the globe. To continue growth through extraordinary service, Equities First Holdings plans to provide access to more than $2 billion to worldwide clients and to conduct up to 2,000 transactions. Christy’s concept of offering stock-based loans as an alternative to conventional loans lets his institution stand as the primary source of a unique type of funding. The company plans to continue helping clients achieve goals even when their countries experience economic crises. Ease of access remains paramount in the Christy approach, and the short and straightforward application process proves it.
