Home Securities Lending How Equities First Holdings Became First in Securities Lending

How Equities First Holdings Became First in Securities Lending

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Equities First Holdings stands out amongst a crowd of banks that are tightening their lending criteria. While these other banks are being stingy with their money, Equities First Holdings is reaching out to consumers who cannot qualify for credit-based loans. People who need to raise money quickly are also being welcomed by this lending institution. The difference between these other banks and Equities First Holdings is the fact that it is at the head of the alternative lending industry, so its business of offering stock-based loans is growing.

Borrowers still have options, but recently, banks have begun to reduce those options that these borrowers have. This means that it is harder for these people to qualify for loans, and if they do find someone who is willing to offer them a loan, they are given prohibitively high interest rates.

The Founder and CEO of Equities First Holdings Al Christy, Jr. has decided to step in and fill the gap where borrowers are currently stuck. He is offering consumers a chance to obtain loans that are collateralized by stocks as a new way of helping people obtain money for their businesses. Stock-based loans usually have a higher loan-to-value ratio than margin loans, but they are also offered with a fixed interest rate. Borrowers can feel secure when they accept these loans because of it.

Margin Loans and Stock-Based Loans

Mr. Christy noted the difference between margin loans and stock-based loans. A consumer cannot get a conventional loan without being pre-qualified first. Once the borrower is approved, he or she can only use the money for a specific purpose. In addition to that, conventional loans have variable rates, and the loan-to-value ratio can only be expected to be between 10 and 50 percent. If there is a margin call, the borrower’s collateral is in danger of being liquidated.

Stock-based loans are different because the interest rate will be fixed between 3 and 4 percent. Loan-to-value ratios may range from 50 to 75 percent. The borrower does not have to use the money for any particular purpose, and the loans are “non-recourse.” This means that borrowers can walk away from their loans without having any obligation to repay the outstanding balance on them. This is true even if the collateral stock’s value has gone down.

Stock-based loans do not enjoy massive popularity because of the way that other firms have conducted themselves in the past. For example, some have relieved themselves of their clients’ collateral by dumping it into the open market. After the stocks matured, some have refused to return the stocks to their clients. There have also been several other issues.

How Equities First Holdings Is Different

Al Christy, Jr. of Equities First Holdings vowed to build his business on “a code of integrity and transparency.” His company relies on the leading trading, legal and regulatory institutions when it is in need of counsel. His company’s mission is to offer customers the highest profits for a minimum amount of risk so that they can reach the personal and professional goals that they have set for themselves.

Since the year 2002, Equities First Holdings has been using alternative methods to supply its clients with the money that they need. Loans are supplied against stocks that are traded publicly on the market so that these clients can finance their goals. As a matter of fact, Equities First Holdings is expected to be the leader in Europe of the stock-based loan.

Stock-based loans are becoming very popular these days, and this fact has caused Equities First Holdings to be one of the most highly recognized enterprises in the world of finance. When this company first got its start in 2002, its plan was to be a lending solution for people all over the world. Specifically, the company has been able to focus on the stock-based loan, and this type of lending made it possible for clients to run their businesses on a deal-by-deal basis.

Growth of the Company

Equities First Holdings has grown to include offices all over the world. Currently, the firm has offices in Hong Kong, Singapore, South Africa, Perth, Bangkok, Australia, China, the United Kingdom and the United States. The firm’s headquarters are in Indianapolis, Indiana. The fact that this firm has been growing exponentially demonstrates that its client base has been steadily increasing. Those who used to use banks have given up that option and are now taking advantage of Equities First Holdings.

Equities First Holdings has amassed transactions in the amount of $1.4 billion, and the company believes that it will continue to grow because of the increasing number of people who need its services. Equities First Holdings opened its London offices in 2013, and since then, professional investors who are worth billions of dollars have obtained shareholder loans from the company. Equities First Limited in London also offers individual borrowers the loans that they need.

Also of interest is the fact that Equities First Limited’s entire focus is on equity-based lending. It is in partnership with several strategic institutions, including the world’s leading law firms, the world’s largest banks, and the most prominent investment banks. Because of these relationships, Equities First Holdings can provide capital for businesses and individual clients of high net worth that they need for any reason. These clients obtain money in a manner that is entirely safe and transparent.

Equities First Holdings’ Accomplishments

Equities First Holdings has accomplished many notable goals in the years it has been in business. “Patience, discipline and integrity” are at the forefront of its mission. The company does not attribute any of its achievements to one person. It believes that its success can only be attributed to teamwork and the cooperation of the many different stakeholders that are involved in the company. Because the lending of money is something that has been going on for a very long time, it can only be remarkable when a company does it differently as Equities First Holdings does. This means that Equities First Holdings lends money by taking advantage of the natural and organic cycles that exist in the market.

The main service of this company is financial lending, and by 2017, the company had made more than 700 transactions of this type. It also put approximately $1 billion into the American markets. In 2015, the company developed a $30 million transaction that would benefit research and development projects in India, and Australian company Environmental Clean Technologies Limited implemented the plan. The money has been earmarked to advance mineral and energy technology in India.

Equities First Holdings has also managed to partner with other exceptional companies around the world. One of those companies is Meridian Equity Partners, and it is the reason that Equities First Holdings found it necessary to open new branches of its offices in Singapore, Hong Kong, and Jakarta to support a 50 percent increase in its workforce.

The company completed a notable transaction with Andrew Newland of Angle. Equities First Holdings returned Angle’s collateral shares in the amount of $1.35 million. Angle provides the medical community with the products it needs to diagnose cancer, and Equities First Holdings is proud to partner with it. Angle CEO Andrew Newland became a success story for Equities First Holdings on October 27, 2016. That is when he paid his loan in full.

The transaction mentioned above is impressive, but Equities First Holdings made a particularly monumental announcement on its 15th anniversary. At that time, the company had completed 700 transactions since it first opened its doors for business. In addition to that, it had distributed more than $1 billion dollars to clients from 2012 to 2016.

In 2017, Equities First Holdings announced in a press release that it returned all of Paysafe Group’s collateral after the company finished making all of its interest payments. Paysafe Group engaged in the transaction with Equities First Holdings in the year 2014, and it was completed in 2017. Equities First Holdings considers this transaction to be a major success, and it is hoping that this means that there will be business coming from Paysafe Group in the future. After an Equities First Holdings client pays his or her loan in full, the client’s stocks will be returned to the client in five business days.

Goals 

Equities First Holdings also has some very lofty goals for its future. It has wanted to be the financial institution that dispersed more than $2 billion to clients. The company would also like to engage in as many as 2,000 transactions. It plans on being the lending entity that helps its clients meet their personal and financial goals even if the country is experiencing an economic crisis. Since stock-based loans are the alternative to conventional loans, Equities First Holdings plans to be the main financial institution that is offering stock-based loans to the public.

It is important to Equities First Holdings that its customers obtain the money that they need as easily as they possibly can. To make this happen, the company does not require the applicant to go through a long, difficult application process. To ensure that the process is easy, it only takes 24 hours.

Obtaining a Loan from Equities First Holdings 

Your stocks will be used as the collateral for the loan, so this process will be different from the application processes used at other lending institutions. Organizations or individuals can apply for loans, and they will receive a fixed rate that will remain the same throughout the life of the loan. This will mean that they will be able to settle these loans whenever they are ready to do so. Other lending institutions make it more difficult for their clients to pay their loans, but you don’t have to be concerned that this will happen with Equities First Holdings. As a matter of fact, the interest rates that you will receive from Equities First Holdings will be the lowest in the world.

The reason that Equities First Holdings has grown at such a fantastic rate is because of the ease with which people can receive a loan and the interest rates. The repayment plan that Equities First Holdings offers to its clients is extremely flexible.

Equity-based loans are an enormous success because of their unique investment model. The staff with Equities First Holdings makes a point of learning the trends that are prevalent throughout the business market. Because they are doing that, they always know what is happening. These professionals keep up with a lot of information about the markets and get to know all of the trends so that they can assist their clients in making their businesses grow. All they are providing their clients is equity-based loans, so Equities First Holdings is much more innovative and efficient than the other banks.

The Five-Step Loan Process 

The loan process only consists of five steps, and they include the following:

• The first step is to initiate contact. The company suggests that each potential customer gather his or her documents that concern his or her collateral before they make contact with the company. After you have done this, you may contact Equities First Holdings and let them know how much money you need.
• The company will receive your request for the loan and your documentation about your collateral. The company calculates your loan-to-value ratios and your fixed interest rate.
• After you have read the terms of the agreement, you will be required to sign your stocks over to Equities First Holdings. The collateral will go into a custodian account, and you will receive your loan.
• Both parties agree to the terms of the agreement, and the funds will be transferred to you at the same time that the shares are transferred to the company.
• While the loan is ongoing, you will make interest payments to Equities First Holdings. When the financing period ends, your stocks will return to you after you have paid the funding issued.

These types of transactions have been undertaken by many individuals and companies of all sizes.

The Repurchase Agreement 

Equities First Holdings has recently gotten into the business of repurchase agreements. A repurchase agreement is also known as a “Repo,” and it is a financial instrument in which a Repo buyer can provide a Repo seller with capital. The capital is collateralized by the Repo seller’s securities. Both parties agree on the price that will be paid at the end of the transaction when the seller has the opportunity to purchase his or her securities from the buyer.

Dubai Financial Market made an announcement in April that Equities First Holdings had been approved to provide Repurchase or Repo transactions. This means that Equities First Holdings will be able to provide Repo services on the market. These services would be provided according to the regulations of Dubai Financial Market and the Securities and Commodities Authority. This deal is significant because it means that people do not have to give up the opportunities they may have in the future to grow their businesses in exchange for liquidity.

The Chief Operating Officer of DFM stated that her company is extremely happy to offer Equities First Holdings a license to provide Repo transactions. This action made DFM’s position in the area even stronger. The company is always looking for new opportunities to offer its investors that follow the DFM strategy 2021, and it helps them become an even more diversified company. The Repo transactions make it possible for investors to use a portion of their securities’ value through an OTC Repo with the company that is lending them money. Then, the investor will be able to make trades and increase trading activity.

Equities First Holdings’ Al Christy stated that the United Arab Emirates and Dubai Financial Market have been a part of his company’s growth plan for many years. Market liquidity needs to be strengthened, and the approval that Equities First Holdings has been given for Repo transactions gives businesses and investors the ability to use their securities to expand their businesses.

The Director of EFH sales in the Middle East Andrew Stevens said that he is expecting there to be tremendous demand for Repo transactions. He also anticipates working with individuals as well as businesses who are seeking liquidity.

Equities First Holdings can begin implementing Repo transactions as a Registered Repo Buyer or RRB right away. Equity First Holdings will diligently follow all of the regulatory body’s rules.

Equities First Holdings offers an international audience financial products with the lowest interest rates, and it is the only one of its kind. The loans that clients can receive from this company are not subject to market fluctuations, and this is one of the main reasons that people apply for cash through Equities First Holdings. Clients are not burdened by the many rules and regulations for repaying their loans as they are with other banks. The way that Equities First Holdings has handled its business has changed the way that people view financial institutions in a climate when lending is considered to be highly questionable.

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