Conventional lending has been the choice among most people looking for funds to cater for the development of their projects, but this seems to have changed since new lending rules were enacted. In recent past, lending institutions changed their regulations, tightening eligibility criteria and increasing interest rates for conventional loans. These changes have pushed many borrowers to go for alternative sources of credit and the most reliable option they have picked is stock-based lending.
Equities First Holdings, LLC is a company that has been offering loans since 2002 and their lending options have relied on publicly traded stocks for collaterals. Following recent developments that saw many banks hike interest rates and change eligibility criteria the company has recorded an influx of borrowers, who have opted for stock-based borrowing to finance urgent projects.
There are a lot of benefits that come with equities lending that are motivating borrowers to choose this option. One is the fact with this form of borrowing there is no risk of change in interest due to inflation. The interest rates offered are fixed and despite the economic conditions, there is no risk that a borrower will experience changes in the rates. Most conventional loans do not offer such security since interest is subject to change with shifts in the economy.
Another aspect of equities lending that has attracted a huge number of borrowers is the non-recourse rule that allows the borrower to withdraw the loan at any point. Borrowers also enjoy better loan-to-value ratios and the loans do not offer as many restrictions as a conventional loan. As Equities First Holdings cites, most of the borrowers who have joined their system are people who had tried conventional borrowing but once they came across a better option they have vowed to stick to the alternative.
About Equities First Holdings
Equities First Holdings is a financial institution that has been operational since 2002 and their main market has been stock-based lending. The much growth the company has experienced is as a result of the alternatives it has offered clients who are looking to finance their projects within a short period of time.
To date, Equities First has completed over 650 transactions and transferred more than $1.4 billion. The company has managed to attract more customers using their low rates and high loan-to-value rates that have ensured customers benefit in the process and have a stress-free repayment plan. As a global company, Equities First Holdings has opened offices in at least 9 countries across the world.
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