Equities First Holdings is a global lending company that is headquartered in Indianapolis. It has offices in several countries, including South Africa. Equities First Holdings specializes in loans that are backed by stock in the company seeking the loan. The capital that is raised in this way can be used in any way; it’s considered non-purpose capital. Businesses that raise loans in this way typically use it to shore up business activities, expand their operations, hire employees, or purchase new equipment.
The type of business that typically seeks a stock-based loan is one that doesn’t qualify for traditional lending. After the financial crisis, bank lending standards have been tightened to the point that many don’t qualify any longer. However, stock-based loans also have advantages over traditional loans. The interest rates are generally lower and the repayment term is typically three years. As the loan is backed by the value of stock at the time the loan is issued, getting a stock-based loan removes some risk the company has with the value of their stock on in the market. Also, the company taking the loan can stop repaying at any time if necessary as the loans are non-recourse and learn more about Equities First.
The South African operations of Equity First Holdings are overseen by Deven Govender who acts as the Director. The offices are located in the Cape Town area, which is a financial hub in the country. This location keeps Equity First Holdings close to their clients and potential clients. As the aftereffects of the financial crash affected almost every country around the world, many businesses in South Africa find it necessary and/or desirable to obtain a stock-based loan in place of a conventional loan as a way of quickly gaining capital.
Al Christy, Jr. founded Equity First Holdings in 2002. The company’s success in the United States led to it rapidly expanding to other countries. he serves as both the Chief Executive Officer of the company and its Executive Chairman. In addition to South Africa, his company is also located in the UK, Australia, Hong Kong, Singapore, and Thailand and more information click here.