Equities First Holdings is a global financial company which specializes in providing alternative loans to other businesses. Among the types of loans they offer are margin loans and stock based loans. The company’s financial products have been used by more and more companies over the last several years as they provide an attractive way to raise capital for those firms that don’t qualify for conventional loans.
After the stock market crash of 2008, many banks have increased lending standards so high that many companies no longer qualify. They now turn to companies like Equities First Holdings to quickly raise needed capital. How a stock-based loan works is that in exchange for shares in their company Equities First Holdings lends them capital that can be used for any purpose. This provides the company with the advantage financial hedge as it limits their risks to the ups and downs of the value of their stock.
Stock-based loans feature competitive fixed interest rates vs. conventional loans. Another advantage is that the company can walk away from the loan at any time as they have no obligation to the lender due their being non recourse loans. The main differences between a stock-based loan and a margin loan is that a margin loan must be used for a specific purpose and the lender can liquidate the loan at any time.
Equities First Holdings established in 2002. Headquartered in Chicago, they now have offices around the world including countries like the UK, South Africa, Australia, and Singapore. It was founded by Al Christie Jr. who serves as the company’s Chief Executive Officer. They specialize in offering alternative loans to medium-sized companies that need to quickly raise capital.
The types of companies that use Equity First Holding’s loans are those that either don’t qualify for traditional loans or need to raise capital but it’s not for a specific purpose which also rules out conventional loans in the following: http://www.businesswire.com/news/home/20141102005020/en/Equities-Holdings-LLC-Continues-Growth-Acquires-Sydney-and-Perth-based\ click here.