Equities First was established in 2002 and has been one of the leaders in providing financial solutions to their clients ever since establishment. The company has focused on providing short-term and long-term financing needs to those that are looking to use their stock to secure a loan, as opposed to cash or other assets. When providing these loans, the company will take a lien on an investment portfolio and will have some control regarding changes in asset allocation. The company has completed over 650 different transactions over the past 14 years, which have totaled over $1.4 billion in total transactions.
While Equities First has been a leader in this form of lending, it is seeing the demand for this type of lending increase dramatically over the past year. In the past year, credit markets have continued to tighten, which has made it more and more difficult for people to qualify for more traditional personal loans. Those that once used to be able to qualify for unsecured personal loans are no longer able to do so and will look to Equities First as a solution.
Getting a stock-secured loan is often a benefit to consumers as well. The loan terms are typically around three years and offer a non-recourse structure. This type of loan term is beneficial compared to a traditional margin account, which may offer a higher level of leverage, but will always require you to have your name on the guaranteed line.
Furthermore, those that use these loans can often get a lower interest rate than compared to traditional unsecured personal loans. In many cases, the interest rate is also fixed for the term of the loan, which is a huge advantage in today’s market where many people believe that interest rates will continue to rise for the foreseeable future. This can also provide the ability to come up with unique interest-rate hedging options for more seasoned investors.
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