Working capital is not easy to procure in the current lending landscape. The rules have changed. The rules, in question, are the laws that govern the lending industry are a bit stricter than was the case in years past. Legislators simply took steps to address less-than-positive lending practices. While there are certain positive results from the tightening up of the lending laws, borrowers in need of working capital find their options limited.
An option has emerged and it is proving to be extremely beneficial to those in need of working capital. Stock-based loans are growing in popularity. Equities First Holdings has revealed that “margin loans and stock-based loans” are increasing among investors. Equities First Holdings is a top global lender involved with alternative investment strategies. The management of the company understands the investment market and also knows what options borrowers are seriously interested in exploring.
Margin loans are designed to provide a borrower with funds intended for investment purposes. Stock-based loans involve the use of stocks as collateral. The interest rates are lower on these types of loans, which makes them appealing. Likely, the most appealing benefit to both of these loans would be the approvals. The tightening of loan approvals does not exactly help those hoping to procure a loan. These alternatives present extended options for borrowers.
Equities First and its management team remain a good source for information on this topic. The company focuses heavily on helping clients acquire alternate sources of capital. The company has been in existence for about 14 years and has assembled a solid team capable of supporting all clients.
Borrowing money is frequently necessary for many business owners and entrepreneurs who are trying to maintain their place in the market. A lack of lending options could mean a lack of business operation — hardly a good thing. Through margin and stock-based loans, certain barriers may be removed.