Banks and financial institutions have come with stringent qualifications for investors and businesses seeking working capital. This has led to the search for alternative sources of capital one of them being stock loans. The securities-based lending has become popular among those that do not qualify for conventional credit-based loans. Equities First Holding UK is a leading company that offers fast and efficient alternative source of capital. With over ten years of experience, the firm has a reputation of dealing in a transparent manner to ensure secure transactions.
Equities First Holding UK works with high net-worth individuals and businesses that require non-purpose capital. It is a subsidiary of Equities First Holding, LLC which operates about nine global offices. The loans offered use equities that are publicly traded and are listed on the major exchanges around the world. The company evaluates the risks based on the future performance of the stocks. The sophisticated investors seeking such loans should have shares in companies that are likely to appreciate in value. When the client agrees to the terms, collateral is transferred to a custodian account as the loans proceeds are transferred to holdings account.
A securities-based loan has a high loan to value ratio and a fixed interest rate and is for three years. The shares are not liquidated but are transferred and returned upon repayment of the principal funding. It is important to note that the client retains the market value if the stock appreciates and they also retain all the dividends. The stock-based loans are non-purpose giving the customer flexibility with the capital. All Transactions comply with the industry standard methods and are executed by trusted legal and accounting partners. The process is efficient as it takes between five and seven business days.
Other than the stock-based loans, the company also specializes in margin loans which require the money to be used for a particular purpose. The securities-based loans are non-recourse meaning that the borrower can opt out at any point. Investors who choose such loans enjoy lower interest rates compared to what they would get from other financial institutions. Equities First Holding UK is indeed an industry leader in financial services, alternative finance solutions and capital allocation.