Borrowers are starting to use stock as collateral to secure loans. As the turmoil of the financial markets has taken its effect on wallets, more loan borrowers are turning away from margin loans and taking up alternative means of securing loans. Those unable to qualify for a more traditional loan are especially drawn to stock collateral. Most banks that offer loans backed by stock do not require a check on a credit score or require qualifications typical of more traditional loans. All anyone needs to qualify for these loans is some shares to give to secure a loan for whatever needs they might have.


The trend in increased interest in stock collateral was first noticed by lending firm Equities First Holdings. Al Christy Jr., the founder and chief executive officer of Equity First Holdings, has noticed this trend and made Equities First central focus stock backed loans. Both borrowers and lenders benefit from this setup. Stock collateral allows EFH to give loans at a lower interest rate than most of its competitors allowing for interest rates around 4%. S


 Equities First Holdings is a global leader in shareholder financing. With its innovative approach to the lending process Equities First is providing those in need with new ways of reaching their goals. Since 2002 the lending firm has offered loans to those with stock collateral, but the recent issues experienced with other categories of loans has made stock collateral much more attractive in recent times. As other lenders follow suit, the pioneering ways of Equities First will help shift the paradigm of the lending industry into a completely different direction.


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