Equities First Holdings was developed as a solution to a few shortcomings of traditional banks. After traditional lenders made stricter criteria and approval requirements, EFH started offering alternative shareholder financing options. EFH’s loans are based on share trading that takes place on public exchanges, and EFH provides liquidity with attractive terms. Loans may be used for professional or personal purposes. EFH is known for offering fixed interest rates that are low and higher loan-to-value ratios. Learn more about Investing Strategies from our friends at Stock Tavern.
History
With the vision of CEO Al Christy Jr., Equities First Holdings was launched in 2002. His goal was to fill the non-purpose gap that traditional lenders left in meeting the capital and interest rate needs of business and high-net-worth clients. EFH is currently headquartered in Indianapolis, Indiana. In 2016, a press release showed that the company had successfully completed more than 650 transactions, which totaled over $1.4 billion.
As the recession came to an end, Equities First Holdings’ growth picked up. In 2013, the company expanded to London. Since then, it has experienced considerable financial growth from that location. In a 2014 press release, company officials announced a major acquisition in Australia. That was also a key growth point. As 2014 came to a close, EFH had a total of six offices in four continents. It had a presence in seven countries around the world in 2016.
Today, EFH has 12 global offices. A few of the notable places where it has offices are Bangkok, Madrid, Sydney, Beijing, and Singapore. As of 2020, it has completed well over 1,000 successful transactions around the world.
Accomplishments
Through teamwork and diligence, Equities First Holdings reported several notable milestones over the years. In 2014, the company entered into an agreement with another entity for one of its biggest deals. The multi-year deal turned out to be a success that was completed in 2017. In 2015, it executed a $30 million transaction that benefitted research and development for clean technologies in India. Soon after that, the company’s strategic expansions and the addition of more successful deals allowed it to grow its workforce by about 50%.
A borrower who worked with EFH paid off a major loan in full in 2016, and that was a milestone for the company since the borrower was a notable figure in cancer treatment research and technology. Additionally, 2016 was a successful year for EFH when it reached $1 billion in distributions to clients for a five-year period. In 2017, the company reached its 700th transaction. More recently, it reached 1,000 for a transaction total.
Services
EFH takes pride in developing and improving its service model as needed to meet the changing and evolving needs of clients and the market. With speed, flexibility, and efficiency, it also strives to provide a user experience that is second to none. Since finding liquidity is challenging for most people and businesses, EFH works as a partner to help clients locate difficult-to-find solutions that fit their needs.
On average, Equities First Holdings responds to clients or inquiries within 24 hours. It offers some clients 70% LTV ratios. Interest rates range between 3% and 4%. However, the terms are subject to change over time. As a company that has stated its value for transparency, EFH provides current interest rates, LTVs and other important service information on its website. To better meet the individual needs of clients, repayment terms are designed to be flexible.
Another important service that Equities First Holdings undertakes for clients is staying current with key market trends. EFH is always able to provide clients with in-depth insights and information to guide them. By doing this, EFH positions clients to have more opportunities to grow their business or improve their finances. Since EFH’s loans are based on equity, the company is especially concerned with helping clients make wise choices that are profitable.
EFH has a five-step loan process for clients. It provides step-by-step guidance throughout the entire process, which is designed to minimize waiting time. There is an application process, and the borrower signs over collateral stocks to EFH during that phase. This takes place after the borrower reviews and agrees to the loan terms. Once the borrower completes the loan repayment, ownership of the collateral stocks is returned to the client.
In addition to loans, Equities First Holdings works with repurchase agreements. A repurchase agreement allows a repo buyer to provide capital to a repo seller. The repo seller’s securities are collateral, and there is a price agreement for the end of the term for purchasing the securities. EFH also provides these services in accordance with the Dubai Financial Market’s rules.
