In the recent past, we have seen banks adopt stringent rules and regulations, which loan borrowers are expected to adhere to in order to acquire loans. Although this measure has shielded banks against defaulters, it has blocked many individual and business borrowers from accessing credit based loans. This has prompted the emergence of other disruptive financial institutions that challenge conventional bank borrowing by offering alternative lending plans.
Equity First Holding has gained substantial prominence in the provision of margin and stock based loans to individual investors and small businesses. The loans are meant to help persons who have been locked out of bank loans due to stringent pre-qualification criteria. It also aims at raising capital within a short period. Ideally, Equities First stock loans give the borrower the flexibility of collateralizing their loan with shares they own in other companies and are believed to gain higher value in future. Stock-based loans interest rates are much lower than other financing options. In addition to this, the investment options for stock loans is limitless, and it allows the borrower to invest in whichever project they have. Another very attractive feature of stock loans is the assurance to the customer that after repaying the loan, you will get both dividends and appreciation value of shares that secured the loan.
The non-recourse aspect of stock-based loans permits the borrower to abandon the loan with no obligatory requirements, even if the actual value of the collateral has depreciated. CEO and Founder of EFB, Christly, points out that despite the fact that both margin and stock loans are collateralized using securing, they differ in some aspects.First, there are pre-qualifications similar to those of bank loans, which margin loan borrowers must fulfill in order to qualify for a loan. Additionally, the funds are borrowed for a specific projects and unlike fixed interest rates in stock-based loans, the interest on margin loans is provided. Established in 2002, Equities First Holdings continues to offer alternative capital to individual investors and businesses.