As other banks are rolling up the red carpet, Equities First Holdings is rolling it out. The alternative lending firm is wooing consumers who don’t qualify for credit-based loans or can’t afford the sky-high interest rates. Even in an uncertain economic climate, its stock-based loan business is booming as a result.
Al Christy Jr., the company founder and CEO, offers loans that are collateralized with stocks. They have a higher loan-to-value ratio than margin loans, but the 3 to 4 percent fixed interest rates have business owners breathing much easier. Also, entrepreneurs looking to raise quick capital are not limited to using the money for a specific purpose. That’s not usually the case with conventional loans.
Borrowers needn’t fear the dreaded margin call to immediately deposit funds or liquidate their holdings. Moreover, most of the stock-based loans have a non-recourse feature. Even if the value of the collateral stock goes down, clients are under no obligation to pay the outstanding balance. Equities First Holdings can offer this because Christy and his team are good at taking advantage of organic stock-market cycles.
In the past, some lending institutions gave stock-based loans a bad name. Their clients’ collateral was dumped into the open market. Stocks weren’t returned after they’d matured.
Christy vowed to build Equities First Holdings on integrity and transparency. His staff members turn to trusted regulatory institutions for counsel. He strives to deliver the greatest profits for the least amount of risk. His clients are attaining their financial goals as a result, and Equities First Holdings is an emerging industry leader.
The firm is headquartered in Indianapolis, Indiana. Christy attended college in nearby Bloomington. Since its founding in 2002, his company has expanded to open offices in Australia, the U.K., Switzerland, Hong Kong, Singapore and Thailand.
Over the course of more than 900 transactions totaling $1.4 billion, its record for on-time funding and collateral return is spotless. Between 2012 and 2016, Equities First Holdings distributed more than $1 billion to its clients.
In 2015, it participated in a $30 million effort by Environmental Clean Technologies Limited to develop energy and mineral technology in India. Glenn Fozard, chairman of ECT, commented, “The Australian EFH team conducted themselves with professionalism and integrity and have been a great support in setting up this transaction.”
Another notable transaction was completed with Andrew Newland of Angle, which supplies the medical community with tools for diagnosing cancer. Angle’s returned collateral shares exceeded $1.3 million.
One of the company’s most successful transactions was completed during its 15th year of operation. Paysafe Group initiated the transaction in 2014, and all of its collateral was returned in 2017 when the interest on the loan was paid off.
More recently, the Dubai Financial Market approved Equities First Holdings for repurchase transactions. A repurchase agreement, also known as a repo, is a short-term loan in which the seller of a security agrees to buy it back at a specified time and price. The interest charged to the seller is called the repo rate. Repos are ideal vehicles for raising capital.
The Dubai deal is significant for both parties as well as for business owners who can seize opportunities to grow. Equities First Holdings can offer repo services on the market. That makes the firm even more diversified. At the same time, it strengthens the Dubai Financial Market’s position in the area. Since investors can use their securities to open businesses or fund expansion, trading activity is expected to increase. Repo services should be in high demand.
Christy said that he had always wanted to expand into the United Arab Emirates and that market. The Equities First Holdings deal will boost market liquidity.
Christy anticipates even greater growth as his company’s reputation speaks for itself. Prominent investment banks and law firms all over the world are eager to partner with Equities First Holdings. That catches the attention of individual clients with high net worth.
No one, not even Christy, claims credit. The CEO attributes much of Equities First Holdings’ success to teamwork and collaboration. What’s next for Christy? He is shooting for 2,000 transactions, and he’d like to see Equities First Holdings disburse at least $2 billion to its customers.
With those lofty goals in mind, Equities First Holdings has streamlined the loan application process to make it easy for clients to get loans. Here’s how the five-step process works:
1. A client gathers all relevant documents supporting collateral. They turn them over to Equities First Holdings and request a loan.
2. Based on the collateral offered, a representative makes calculations to determine the fixed interest rate and loan-to-value ratio.
3. Once the terms are agreed upon, the client signs over the stocks as collateral. The shares go into a custodial account.
4. The borrowed funds are immediately transferred to the client.
5. Throughout the life of the loan, the client makes interest payments. Stock shares are returned when the client repays the loan.
It’s that straightforward. Clients can quickly access liquidity at below-market rates. Publicly traded shares will do for collateral.
Both individuals and organizations of all sizes are eligible for loans at Equities First Holdings. Again, loans are not subject to market fluctuations; the interest rates are fixed and will remain the same throughout the financing period. The company offers flexible repayment plans. Yet another benefit is the ability to repay a loan at any time without penalty. Finally, the company claims to offer the lowest interest rates in the world.
The team of experts at Equities First Holdings stays on top of the latest trends in the global business market. Therefore, the company’s unique investment model is ever-evolving, and the staff is equipped to advise clients about how to grow their own businesses.
The lender’s innovative approach and one-of-a-kind financial products have garnered international acclaim. Other financial institutions have come under scrutiny for questionable practices, but Equities First Holdings is doing its part to change public perception.
Visit their website to learn more about the wide variety of services offered.