One sign that Equities First Holdings are meeting the needs of business people as a provider of alternative shareholder financing solutions is the ever increasing clients’ base the company is experiencing in most of its offices. When EFH started operation, it had only one office in Indianapolis, the headquarters. Today, the company has grown is size with offices in countries round the globe. The good thing is that these offices constantly have to contend with increasing clients’ patronage. The Melbourne office in Australian had to take a drastic step to surmount this hurdle.
The Australian arm of EFH has three offices situated in Melbourne, Sydney, and Perth. The Melbourne office had to be moved to a more spacious and easily accessible location as it was too small to accommodate the current overflowing clients’ patronage. The new Melbourne EFH regional office is at Level 2, 287 Collins Street, Melbourne, Victoria 3000, telephone: +61 3 8688 7191.
Both clients and staff of the Melbourne regional office are happy with the change of location. The Managing Director for EFH (Australia) paint a picture of what the new office look like: “Our Australian business is continuing to grow and relocating our Melbourne office will give us a better space to accommodate our current clients and staff with room for expansion.”
Equities First Holdings’ fame is tied to the stock-based loans it provides to clients that are in need of quick capital. The loans are unrestricted giving clients the privilege of using the fund for whatever purpose. The non-recourse feature of these loans also remains an attraction to many business persons and organizations. It simply means that in the event the borrower could not pay back, he or she only forfeits the stocks used as collateral and nothing else.
The Australian offices are only few out of the numerous EFH offices across the globe. Countries like Hong Kong, Switzerland, Thailand, Singapore and the United Kingdom also have clients’ friendly EFH offices.
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Equities First Holdings is a global alternative lending and financing company based in Indianapolis. The company also provides financing to shareholders. As of July, 2016 the company has observed traction in stock based loans and margin loans. One of the chief causes is the current economic climate that has caused banks and other lending institutions to tighten lending criteria. This scenario has led to a rise in equity lending. Equity lending is attractive for borrowers who need to raise funds fast and cannot qualify for traditional credit score based loans. Even though banks offer some lending solutions for such individuals, they have become expensive as most banks are cutting lending options to borrowers, increasing interest rates and tightening loan qualifications.
Al Christy, Founder and chief executive of Equity First Holdings, views loans collateralized by shares and stocks as an inventive lending mechanism. Another advantage of stock based loans is that they have a high loan to value ratio compared to margin ratio and are offered with fixed interest rate. This provides the lender with certainty through the duration of the loan period. Margin loans are particularly vulnerable to market fluctuations. Stock based loans on the other hand provide a hedge as the borrower is lowering their investment risk if the market goes downside. Additionally, stock based loans use a nonrecourse feature that permits borrowers to leave a stock loan at any point in time. Borrowers are allowed to do this even if the stock has depreciated and they get to keep the loan’s initial proceeds.
Equities First Holdings was founded in 2002 to provide the public with alternative lending solutions. The company specializes in supplying capital using public stocks as collateral. The company has completed over 600 transactions that are worth approximately $1.4 billion. Stock based loans have risen in popularity as they offer loan to value rations of 50 to 75 percent compared to 10 to 50 percent for traditional margin based lending.