In 2016, a study done in the lending process of banks indicated that most banks are providing lesser clients with loans due to the rising qualifications required to secure a traditional loan. Most non-qualified candidates prefer to pick the collateral based loans for higher security during the transaction. As long as a candidate is willing to use one of their assets for the loan procession, it is easier to receive finances for business capitalization and other personal endeavors. Another major benefit of selecting a collateral based loan is the reduced amount that one ends up paying at the end of the loan’s life, unlike the interest generated by alternative loans.
Some of the most commonly used collaterals include properties such as homes, cars, investments such as stock, savings and future paychecks. One such lending bank that uses guarantees is Equities First Holdings, owned by Al Christy. Al Christy established the firm in 2002 after a keen observation of the loan market across the world. Equities First Holdings specializes in offering clients with innovative loan solutions that are more affordable to the middle-income professional. It provides stock-based loans to clients in within and without the United States. Equities has regional offices located in London, South Africa, Singapore, Bangkok, Sydney, Perth and Hong Kong.
Al Christy described the benefits of stock-based loans and stated that Equities has low and fixed interest rates and loan-to-value ratios. The firm allows borrowers to use the money on any venture of choice. In case the stock value decreases in value during the loan’s life, one can walk away from the procedure without any future obligations regarding the process. When the borrower finally pays back the loan in full, Equities maintain their integrity by returning the stock. To date, the firm has processed over 2000 loans for customers across the globe.