Equities First Holdings specializes in stock-based loans, which are special loans that make up for some of the features that traditional loans lack. While most banks use only credit and job history, Equities First Holdings uses a comprehensive approach to evaluating the value of an applicant’s publicly traded stocks. Equities First Financing offers shareholder financing, credit-based loans and secured loans. Since it started, the lender has facilitated more than $1.4 billion in stock-based loan transactions.
Equities First Holdings Provides Innovative Lending Process
During its existence, Equities First Holdings has made more than 900 stock-based loans. It mostly operates throughout Asia, Europe and North America. The lender provides business or personal loans to borrowers with stocks that qualify as collateral.
How Equities First Holdings Differs From Banks
In comparison with traditional bank loans, these are some of the features of the stock-based loans from Equities First Holdings:
- The interest rates are typically lower and more stable.
- Borrowers can choose a type of loan that fits their needs.
- The approval waiting periods are typically shorter.
- Borrowers have the power to make more decisions about loan terms and other features.
- The repayment plans and terms are more flexible.
- Personal information requirements are not as extensive.
- The lender responds to inquiries within a day.
One of the benefits of the lender’s flexible repayment programs is that borrowers are more likely to meet their financial obligations and have their stocks returned to them. Equities First Holdings has a good reputation for watching trends to keep interest rates as low as possible. With the structure of stock-based loans, borrowers have a greater chance of repaying their loans in full by the maturity date. Equities First Holdings is committed to helping borrowers acquire their loan funds as quickly as possible.
How the Process Works
Equities First Holdings provides full information about the lending requirements and process on its website. For qualified borrowers, the process starts with a consultation. During that time, a lending specialist discusses the possible details of the contract with the borrower. If borrowers have the required documentation ready, the approval process is faster. They must have information about the stocks that they wish to use as collateral, and they must specify how much money they need. Equities First Holdings reviews the information, determines the loan-to-value ratio and calculates an interest rate. In most cases, the designated LTV ratio is as low as 50% or as high as 75%.
If a borrower’s application is approved, the individual may use the funds for anything. For borrowers who use this type of funding, drops are a common worry. In the event of a collateral stock dropping, a borrower is not typically held under obligation to meet the full terms of the loan. Once the terms of the loan have been decided, Equities First Holdings works with the borrower to fill out a transaction application. The funds can be transferred to the borrower after this step. During the stock transfer phase, the client moves the stock to a custodian account that is held by Equities First Holdings. When the transfer is finished, the borrower receives the funds.
There is another valuation phase that follows the transfer of stocks and funding phase. Once the final valuation is done, Equities First Holdings provides the borrower with a statement of final terms. This is simply a document of the terms that were designated prior to the transfer. If there are any additional proceeds from the final valuation adjustments, they are distributed to the borrower. The final phase of the process happens when the borrower meets the terms of the loan. At that time, borrowers who meet the terms in full receive their collateral stocks. This is completed through another transfer process.
How Equities First Holdings Grew
Equities First Holdings was founded by Al Christy Jr. in 2002. With a mission to give customers the greatest value at the lowest risk, the lending company grew into a recognized name throughout Europe. Its success there led it to expand to other continents, and it is still one of the most well-known names in the world for stock-based loans. The lender’s United States location is in Indiana, and it has a smaller office in New York. In 2013, Equities First Holdings opened a location in London.
Equities First Holdings has also secured several strategic partnerships. One of its notable partnerships was with Meridian Equity Partners. It established that partnership the same year that it opened its London location. Since the London office brought an influx of customers, 2013 was already a big year for the company. When Equities First Holdings brought Meridian a 50% workforce increase, that particular partnership and the London growth marked a major turning point for the lender. That growth made it easier for Equities First Holdings to open additional branches in Singapore, Hong Kong and Indonesia.
An acquisition of Equities First Holdings in 2014 brought more expansions. At that time, Equities First Holdings opened branches in Europe, Asia, Australia and the United States. The lender’s profits and client base grew considerably after that expansion. Also, the increased reach gave it more recognition in other foreign markets. Although Equities First Holdings plans to expand more in the future, it does not plan to change the quality of its service or its innovative platform. The lender still hopes to continue offering borrowers personalized services that meet their unique needs. Equities First Holdings maintains a perfect record of returning collateral stocks to borrowers who meet their loan obligations.