One of the biggest impacts of the credit crunch and increased regulations was the decreased ability for most people to obtain a personal loan. While getting a personal loan today is harder than it was a decade ago, those that are in need of capital can still get a loan through a specialty finance provider. One of the leading specialty finance providers in the world is Equities First.
Equities First is a specialty finance firm that specializes in providing loans that are secured by an individual’s stock portfolio. When taking out a loan through the company, you will provide the company with a lien on your stock portfolio. If you happen to default on the loan, the company will have the ability to liquidate your stock portfolio to pay off the loan and any past due interest or fees.
Since they are receiving a great form of collateral, which can be easily liquidated, the Equities First is able to provide the loans with high leverage, almost no fees, and low interest. Beyond the low cost, the stock-secured loans provide borrowers with a number of different advantages.
One way that these are beneficial is that the loans allow you to continue to pursue your original investment strategy. When buying stock, you may want to purchase a certain security because it pays a higher dividend rate, has the ability to increase in value, or it provides you with an advantageous tax position. If you were to sell the stock today to access the capital, you will lose out on all of these benefits. If you are in need of liquidity, taking out a stock-secured loan will allow you to access the capital without selling the underlying stock.