Equities First Holdings established in 2002 is centered in Indianapolis, Indiana with a satellite office in New York City. It specializes on providing securities based lending services for businesses and individuals seeking non-purpose capital. Being a global source of capital, Equities First Holdings lends its clients up to 80 percent of the stock’s value, although the amount hardly exceeds 60 percent. Inclusive of the law terms is an attractive 3-percent to 5-percent interest rate over three years. Clients have more flexibility with their capital since stock loans are non-purpose in Equities First Holdings.
Clients of Equities First Holdings are both institutional and retail investors whose loans range from $100,000 up to $8 million. They may request for loans for various reasons, from paying off a residential mortgage to diversifying company holdings. The loans are secured through stocks which trade as pink sheets on Dow Jones or over the counter.In Australia, Equities First Holdings was first known as Meridian Equity Partners. It has branches in Melbourne, Sydney and Perth. It is a subsidiary of Equities First Holdings LLC. Its president is a 47- year- old Al Christy Jr who monitors the performance of the company’s stock. He refers to Equity First holdings as a private equity firm that is not limited by regulations of Securities and Exchange Commission and Federal Reserve to lending not more than 50 percent of a stock’s value.
Other than lower interest rates and higher loan values, other features that make Equities First Holding’s business model attractive include that once a stock drops below 80 percent of the loan value, lenders can pay the difference to get the loan out alternatively they can choose to walk away from the stock. Another feature is that if a stock performs well and is worth more than at the time the loan was traced, the company returns the whole amount of the collateral, and the lender keeps the extra profit.
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