Equities First Holdings, LLC is a company, headquartered in Indianapolis, Indiana, that offers alternative shareholder lending options. The company says that as traditional lenders such as banks tighten the criteria under which they will loan borrowers capital, their business has seen an uptake in companies coming to them for margin loans and stock-based loans. Equities lending is gaining attention and popularity from those who either don’t qualify for a conventional loan or don’t have time to go through the time it takes to go through the conventional bank loan process.
The Founder and Chief Executive Officer of Equities First Holdings, Al Christy, Jr., says that the loans they offer, which are collateralized by stock in the company seeking capital, offer a number of attractive details. These types of loans have a better loan-to-value ratio and lower fixed interest rates. While explaining the details of stock-based loans, Christy said that most of the loans are for three years and provide the company seeking capital with a hedge against a market downturn. He continued on, saying that the loans are non-recourse which means the borrower can walk away from the loan at any time regardless of whether their stock is doing well or poorly. Read More Here .
The types of companies that Equities First Holdings works with are those that need to raise capital for a number of reasons including expanding their business, taking advantage of new market opportunities, or for other reasons. Some companies don’t qualify for conventional loans and so they seek the alternative financing solutions that Equities First provides them.
In addition to the company’s headquarters in Indianapolis, it has offices in London, Hong Kong, Singapore, Australia, and South Africa. Companies around the world are being affected by laws and regulations put into place by governments after the financial crisis of 2008. Equities First at LinkedIn.