Equities First Holding is a financial firm that operates globally to give an alternative financial solution to businesses and high net-worth individuals. Equities First Holding’s headquarters is in Indianapolis and has offices in Perth, Sydney, Bangkok, London and Singapore.
Equities First Holding provides loan using publicly traded stocks as collateral; they value their loan according to how the shares are performing presently and how they will perform in the future. It enables clients to achieve their goals at a lower cost unlike when they use the traditional method. The conventional way of borrowing has become expensive, interest rates are going up, and qualifications for the loan have tightened; customers are forced to look for an alternative way of getting working capital; that has made EFH to be recognized more.
A client who needs a loan has to meet with EFH experts to evaluate the value of the stock, when an agreement is reached the customer signs the contract. The stock is transferred to the custodian as EFH transfers the money to the client. The customer is expected to pay the interest at an agreed rate and then pays off the principal amount, then is when EFH returns the shares. Borrowing with EFH is a bonus because the interest rate is constant no matter what goes on in the market and in case the client is unable to pay back the loan, Equities First will retain the stock as theirs, and the client does not even have to pay the principal amount.
The founder and CEO of EFH, Al Christy, said it is the most innovative way of lending to the businesses and high net-worth individuals. The company has experienced growth annually of about thirty percent since its doors were opened in 2002; in 2016, it had made more than six hundred and fifty transactions. EFH provides an easy and fast way to get a loan, and that makes them be the leading provider of alternative financing globally.