Equities First Holdings (EFH) over the recent past has encountered a widespread increment in funding of the margin & stock-based advances. Equities First Holding is owing to the fixing of the loaning criteria by banks and other financial establishments. Those that don’t meet the stringent necessities of non-standard loans but seek to raise capital rapidly are getting a suitable option from marginal & stock-based loans. As per the founder & CEO of Equities First, Mr. Al Christy, the stock-based credits likewise come with other benefits, for example, fixed interest rates and greater loan-to-value ratio.
Al Christy has additionally noticed that majority of people view marginal advances and stock-based advances as the same product in spite of their clear-cut variations. Marginal credits are portrayed by the requirement for the borrower to be pre-qualified, the status that the borrowed money ought to be set for a specific utilization, with variable financing costs, loan-to-value proportions ranging from 10 to 50 percent, including liquidation of borrowers’ security without notification to borrowers in case of a margin call. Then again, stock-based credits are portrayed by settled financing costs, loan-to-value proportions ranging from 50 and 75 percent, with no limitations on the way the borrowers ought to utilize the cash which is non-recourse.
In spite of the many advantages that stock-based advances bring to the table, truly many individuals did not consider them to be a feasible borrowing alternative. As Mr. Christy analyzed, this was a direct result of the presence of numerous untrustworthy lenders that regularly neglected to give back the borrowers’ stocks after repaying the loans. However, Equities First Holdings endeavors to give the equities lending services a decent name by working in accordance with the lawful commitments and with utmost transparency and integrity. Its central goal is to offer its customers the optimum benefits at the least risk conceivable.