There are many perks of obtaining finances from alternative lenders. First, there is the issue of interest rates. Alternative lenders tend to advance money at lower rates, which makes the total amount to be repaid in alternative lending, much lower. Other than that, there are less restrictions involved in the alternative lending market. Therefore, this avenue has made it possible for more and more entrepreneurs to access financing.
There are various methods of alternative lending and one of the best is the stock-based lending. First Equities is a pioneer for this type of lending. This downtown-based company was established in the year 2002 and has since then completed over 700 transactions with their clients being both businesses and individuals. They advance loans to their clients based on the stock held. First, they will do an assessment on the stock to find out how they will be performing later. If according to them, the stocks will be gaining, then they are likely to advance you the loan.
Once Equities First advance you the loan, they will hold your stock as collateral. One of the main advantages of taking loans from Equities First is the fact that their loans are non-recourse. This means that you can stop paying and walk away from the loan at any time. The other advantage is the security. You are guaranteed that even when the economy goes to a recession and your stocks are losing, your interest rate will not increase. In fact, you will pay much less. And, when you are done making your repayments, you get your stocks back. According to the founder and Chief Executive Officer of Equities First, Al Christy, they do not hesitate giving you back your collateral.
Another benefit of the stock-based loans offered by Equities First is the fact that they do not have restrictions. Unlike in credit-based lending where you have to explain what you plan on doing with the money, in this type of lending, you can do whatever you please with the money that is advanced to you. So if the banks cannot give you a loan and you have some stocks, go to Equities First, they can help.
Visit http://www.equitiesfirst.com for more.