What do you do if your credit history is an eyesore but you still need that mortgage loan? It’s a tough call to make for many of us, and though there are ways out of it, there is often a bigger price to pay. However, lone seekers are finding new salvation in security based loans offered by Equities First Holding.
What is a Securities-Based Loan?
This is an actual loan whose collateral is based on how much you are worth in stocks. Also known as stock-based loans, it’s a quick way to get lenders to overlook your credit history and focus on your current stock asset portfolio. But here is the catch, you actually need to own stocks that are actually doing well.
Equities First Holding is a London-based lender of securities based loans. They are known to be the pioneer of this concept which is quickly overtaking secured loans and opening new doors to quick cash flow for individuals and companies. So you can say they are a team of professional loan brokers who identified a huge number of individuals who couldn’t access conventional loans and decided to turn this need into a business.Currently, they have over 9 office branches globally and have handled over 650 plus security based loans for their clients. Their 14 year existence in the business is enough proof that stock-based loans actually work and are an option to consider.
Who is Eligible for Stock-based Loans?
Stock-based loans are available for established corporate businesses or wealthy individuals. It may not be an option for the joe who is just starting out as an investor. Why? Because there are some risks associated with using this new form of loan-seeking.First off, the loan can be called in anytime especially when the lender no longer has confidence in your stock portfolio. Secondly, liquidity mismatching is a common problem, especially when the market is hit with fluctuations that affect the price of your stock. And lastly, stock-based loans have the potential to bubble, thus may be undesirable with a not-so-impressive portfolio.
Equities First Holding is a number one provider of securities-based loans.