Equities First Holdings is a privately held company in Indianapolis, Indiana. Since inception in 2002, the Equities First Holdings has been a leading provider of security-based lending services to high-net-worth individuals and businesses. Equities First Holdings gives loans to people depending on their evaluation of the risk and future performances on the stocks, bonds, and treasuries used as collateral. The company’s safe and transparent process has contributed to over 650 transactions with a total revenue if $1.4 billion. Equities Holdings runs its operations in various offices in London, Sydney, Perth, Singapore, Hong Kong, and Bangkok.
Acquiring a loan from Equities First Holdings
An individual or business seeking non-purpose capital must follow a particular process to get a loan from Equities First Holdings. The client should contact the company on the amount of funding they require accompanied by a statement of their proposed collateral. The company then determines the loan-to-value ratio as well as a fixed interest rate depending on their terms and conditions.
Once the client qualifies for the Equities First loan, they are required to read all the terms and sign the Agreement. The loan recipients are required to transfer the item used as collateral to the company’s custodian account. What follows is the financing of the loan by Equities First Holdings through the delivery versus payment method. The method requires a simultaneous transfer of collateral and funding to the holding account. The company returns collateral after a client has repaid the entire loan.
Equities lending have gained popularity in the recent past due to their ability to raise capital quickly and their flexible lending criteria. Equities First Holdings stock-based loans have low interests and a high loan-to-value ratio ranging from 60% to 80%. The company assures clients of the downside protection against the changing stock markets.
Most stock-based loans given by Equities First Holdings have a non-recourse feature meaning that the borrower may walk away without any obligation to the lender. Equities First Holding attracts an interest rate of 3 to 5 percent in over three years for the loan limits between $100,000 and $8 million. Equities leading borrowers include the retail and institutional investors seeking working capital for their businesses.