Background of Equities First Holdings
Equities First Holdings (EFH) is a limited liability company, founded in 2002. The firm specializes in the provision of finance to businesses and high-net-worth individuals. Equities First Holding offers securities-based loans after assessing stocks, bonds, and treasuries risk and future performance. Equities First Holdings’ headquarters is located in Indianapolis, Indiana. However, it has satellite offices in New York City, Sydney, London, Perth, Singapore, Hong Kong, and Bangkok. The company specializes in capital allocation and alternative finance solutions. Its financial to investors include financial solutions to businesses and high net-worth individuals looking for non-purpose capital.
Equities First Holdings develops customized financial solutions to suit the needs of individual borrowers. The firm is famous for providing liquidity through a secure and transparent process. Equities First Holdings’ non-purpose financing helps reduce capital cost by providing ideal financing conditions compared to other traditional options. Traditional financing options do not allow the use of multiple investment accounts as security for loans. Through the use of securities as collateral, the global lender has experienced a significant growth since its inception. Through EFH, borrowers can use stock as collateral to secure working capital. As such, investors acquire capital while benefiting from incentives such as interest, dividends, and appreciation of their investment portfolio.
Equities First Holdings has a history of refunding shares upon the maturity of borrowers’ shares. Just recently, Angle plc announced that Andrew Newland, boss of the Aim-listed medical diagnostics company would repay the £2m cash offered by EFH in exchange of Angle’s shares. Swapping of shares allows borrowers to raise capital quickly even if they do not qualify for traditional credit-based loans. Equities First Holdings is becoming popular among borrowers as an efficient and effective alternative to raising working capital. Equities First Holdings’ increased popularity is attributed to tightening loan qualifications, increased interest rates, and reduced lending options in conventional banks. Stock-based loans serves as a hedging option as they reduce the expected risk. In fact, stock-based loans have a fixed interest rate of between 3-4%. Lastly, stock-based loans are non-recourse; thus, allowing borrowers to denounce the loan even if the value of their stocks decline.