Equities First Holdings is a leader in what is called alternative shareholding financing. Their Website states, “We do one thing so you can do anything.” In essence, Equities First offers high loan to values at low interest rates. These may be in the form of non-purpose loans.Investopedia defines non-purpose loans: “A type of loan that uses an investment portfolio as loan collateral, and the proceeds of which can not be used to purchase, carry or trade securities.” This type of loan requires borrowers to state how they will use the funds, and the lender is required to inform the borrower if the loan is a non-purpose, or purpose loan.
Equities First appeals to business ventures or individuals who need capital in a short period of time, or those deemed not to qualify for conventional credit-based loans. Moreover, the economic climate is such that banks and more traditional lending institutions have tightened criteria concerning issuing loans.Equities First issues stock-based loans. These are in keeping with the definition of a non-purpose loan stated earlier. Some of the characteristics of a stock-based loan include
– Fixed interest rate between 3 percent and 4 percent
– Most stock-based loans allow the borrower to “walk away” and keep the initial loan proceeds. The borrower has no continued obligation to the lender.
– Stock-based loans are an efficient alternative lending solution.
In its nearly fifteen year history, Equities First has completed an estimated 650 transactions internationally. These transactions are estimated at around a total of $1.4 billion to date. The company is reported to be experiencing growth at present in the lending industry by such sources as “Market Wired,” in a July 2016 report.