Equities First Holdings, LLC (EFH) is a financial service company that provides lending solutions for businesses that have a high-net-worth and are looking for a non-purpose capital. The firm was founded in 2002 and has its head office at Indianapolis, Indiana. In addition, its branch office is located in New York City. It offers loans based on its assessment of risks and future performances of treasuries, stocks, and bond.
Since its founding, Equities First Holdings has enabled individuals and companies to obtain alternative funding against publicly traded stocks. As a result, the firm has transacted more than 650 applications that are worth over $1.4 billion. Furthermore, the funds provide clients with high loan-to-value rates, a lending risk assessment ratio that is examined by financial institutions before approving a mortgage, at minimum interest rates.
Margin Loans versus Stock-Based Loans
Equities First Holdings has increased its transactions in margin loans and stock-based loans. However, Al Christy, Jr., the founder and chief executive officer of EFH, notes that borrowers have difficulty in distinguishing margin loans from stock-based loans. In the case of margin loans, borrowers should be pre-qualified before applying for it. This is because; the bank may need to know the purpose of the loan. Additionally, the interest rates on loans are variable, and the loan-to-value ratios are between 10 and 50 percent. However, the bank can liquidate the collateral without notifying the borrower in case of a margin call, when a broker demands an investor to deposit more money to compensate possible losses that may arise.
Stock- based loans allow the borrower to use the money for any purpose; thus, the loans are non-recourse. Moreover, the borrower is offered fixed interest rates, an interest rate on a liability like a mortgage that remains the same during a loan period. It also provides the loan-to-value ratios that are between 50 to 70 percent.
http://www.equityfirstusa.com for more.