Over the past decade, the financial and credit markets across the world have been very conservative. This is particularly true when it comes to providing unsecured loans to individual consumers and small businesses. While getting a personal loan may no longer be possible, there are still many forms of financing options through specialty finance companies.
One specialty finance firm to consider is Equities First. Equities First is a specialty finance firm that specializes in providing stock-secured loans to consumers and small businesses. The company is an industry leader in the field and has provided nearly $1 billion in loans over the past decade.
In order to qualify for a stock secured loan, a consumer must have a stock portfolio that they are able to provide as collateral to the loan. In many cases, Equities First will be able to provide a loan equal to almost 100% of the current market value of the stock. The lender will also take a lien and security interest in the stock portfolio. This will allow the company to liquidate the stock in the event the borrower is unable to repay the loan. Taking the stock portfolio as collateral provides the company with a good piece of collateral, which then allows the company to provide lower fees and interest rates compared to other debt options.
One situation when taking out a stock secured loan is ideal for a consumer is when they need liquidity but do not want to sell stock for either tax or investment strategy purposes. When selling a stock, all consumers will incur a tax event. Depending on how long they have owned the stock, the tax event could be significant and waiting to sell could make a lot of sense. Instead of paying the higher tax rate, the consumer will be able to take out a loan to access the liquidity in their stock fund. Other consumers may wish to hold onto the stock for investment strategy purposes if they believe that the stock will continue to appreciate in the future.
Visit http://www.equitiesfirst.com/contact for more.