Over the past decade, the turbulent financial markets and credit markets have had a lot of impact on many different areas of the economy. One area in which they have had a direct impact is in the area of consumer loans. Today, getting a personal loan is harder than ever before.
For those that are looking for a personal loan, it is still possible to get consumer financing through a specialty finance provider. One company that is still willing to provide loans to consumers is Equities First. This company provides a unique type of consumer debt that is secured by a stock investment portfolio. When providing a new loan, Equities First will take out a collateral position on a bar wars stock portfolio. In the event that the loan goes into default, the lender will be able to liquidate the stock to pay off the loan. This level of liquidity allows the lender to provide low interest loans.
The powers of a loan that is secured by a stock portfolio can benefit in more ways than just the low cost financing option. The main benefit is that it allows the bar were to liquidate their stock portfolio without actually selling it. One situation when this is advantageous is when they can help to avoid higher taxes. Depending on how long you been owned the stock, you could end up being charged a very high tax rate by selling at a gain. By taking out a loan, and delaying the sale, you could end up saving a lot of money through reduced taxes.
Those that take out a stock secured loan can also benefit by not having to alter their investment strategy. If you believe that the stock will increase in value in coming years, it would make much more sense to delay the sale. Taking out a loan will allow the borrower to delay the sale.
The recent turmoil of financial markets has changed the way lenders operate. While lenders previously used real estate as collateral in the past, this is becoming less common as events like the European debt crisis and subprime mortgage crisis take their toll. To counter this many lending firms are turning to the stock market to back their loans. Previously regarded as a novelty, stock collateral is seeing growth as a means of securing debt when other options simply aren’t available. As a global lender with years of experience, Equities First sees this as a growing trend and wants to keep its lead among lenders by pushing it forward as much as possible.
Equity First provides loans backed by stock for clients with both personal and professional needs. Founded in 2002, the company has managed 650 transactions worth $1.4 billion dollars throughout 9 countries. Its winning strategy has allowed the firm to lend at fixed low interest rates at a time when many other lending firms simply cannot claim this.
The advantage that stock based loans have over margin loans is the fact that one does need to qualify for the loan before receiving it. As long as clients have stock they can receive a loan without any problems. This enables those who do not necessarily have the qualifications needed for other loans to receive financial help. The interest rates of these loans tend to hover around 4% and the loan to value ratio is generally between 10% and 50%. This makes these loans perfect for someone who doesn’t have the best credit.
Equity First is a true trail blazer in the world of finance. In today’s unstable financial market investors don’t have as many options as they may have had in the past. It is often difficult for those looking for loans to get the help they need. Stock collateral opens up an entirely new world of opportunities for so many people and Equity First is directly responsible for that. As more lending firms see the success of Equity First, this trend is sure to kick into high gear.
For further information please visit http://www.equitiesfirst.com/