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Using Stock to Gain Working Capital is Gaining Popularity, Says Equities First

As the framework of the global economy continues to shift on the political and technological front, many find that banks simply aren’t being as open to potential borrowers as they once had. Interest rates have increased. Qualifications have become more stringent. In order to pursue business and investment interests, potential borrowers have had to become more creative.

Founder of Equities First Holdings (EFH), CEO Al Christy sees stocks as a method by which borrowing could potentially reorient the way people have been seeking working capital. By seeking stock-based, Christy has pointed out, borrower can seek loans that have a greater potentiality for delivering returns greater than the loan while offering fixed rates of interest for the duration of the transaction.Click Here to Contact with EFH.

The benefits come from the reduction in risk for the lender. By seeking a stock-based loan, the borrower enters into a loan with the freedom to walk away from a stock at any time regardless of its depreciation, meaning they can continue on with loan proceeds without having to honor an obligation to the initial lender. In addition to the freedom to use the capital for any purpose without lender input, the borrower gets through stock-based loans, they can encounter fixed interest rates that lead to a loan-to-value ration of 50:75.

This is quite different from the restrictions of traditional margin loans, such as limitations on what capital may be used for and any qualifications that may hinder their access to that capital in the first place. The borrower must also hand over control of the collateral to the borrower that could be liquidated without warning.

Christy points out that stock-based loans have been looked over by predatory lenders putting collateral into the open market and failed to return stocks at the end of the transaction. EFH, maximizes benefit while reducing risk, which makes stock-based borrowing a practice they will hold on to for quite some time.

About Equities First Holdings:

Providing innovative financial solutions to clients since 2002, Equities First Holdings has made a name for itself in finding a way to meet dynamic business and investment challenges.

From their offices in London, Hong Kong, Australia, and elsewhere in the world,Equities First Holdings has completed hundreds of transactions which have resulted in more than $1.4 billion for their clients. for more.


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