Clients on the hunt for alternative capital raising vehicles are increasingly turning to Equities First and equity loans. Equity loans, oftentimes referred to as stock loans, are good ways to raise non-purpose capital. These loans are secured by a group of stocks, held as collateral, and they also act as a hedge for this group of underlying assets in the event of a decline in their value. Equities First Holdings (EFH) has been in business since 2002 and has lent over $1.4 billion dollars in this time period. The number of transactions associated with the $1.4 billion is 650.
Equity loans are structured with a fixed interest rate over the life of the loan and are typically set between three and four percentage points. As the loans are structured with the pledged collateral, there is no worry of margin calls, and the loans are always non-recourse. These loans are quite well-suited for potential borrowers that are looking to raise non-purpose capital in a quick time period or that shy away from bank-originated loans with their overwhelming amount of paperwork requirements. As banks tighten their lending requirements it often becomes less advantageous for those with less than perfect credit profiles to borrow at what are usually higher interest rates.
High net worth individuals are also drawn to equity loans due to its non-recourse structure and quick turn around times. Non-purpose capital cannot be used to carry, purchase, or trade securities but there are not very many other regulations associated with this type of capital. Equities First is proud to partner with its clients and to help them to gain access to alternative vehicles in their non-purpose capital raising. As today’s banking environment grows even more difficult due to heightened lending requirements, alternative capital raising vehicles are coming to the fore today.
John Holt serves as the President and Chief Executive Officer of NexBank Capital, Inc. He is a serial entrepreneur and a renowned financial advisor. As such, John serves on the panel of the Texas Bankers Association’s Strategic Opportunities Forums. His most recent participation was when he served in the 5th Yearly Strategic Opportunities and M&A Conference. It took place in the New Orleans, and their subject for discussion addressed issues relating to the reinvention of community banking.
During that conference, the bankers also talked about perceptions on contending for opportunities by innovation. The panelists and involved managers invested quality time exploring strategic opportunities. In their meetings, they do so through organic development, branching as well as through M&A activity. That forum serves as a platform through which the consultants, bank administrators, and experts evaluate issues affecting their sectors.
Essential Details Concerning NexBank Capital, Inc.
NexBank is a financial firm that is devoted to serving their clients. They usually deliver quality service through the guidance of three key businesses. The core dealings include; mortgage banking, commercial banking, as well as organizational services. At NexBank, every client enjoys fully customized solutions. Most people recognize them for their timeliness, reliability and quality execution. To enable their customers to expand their horizons, they employ seasoned staff who have the heart for service. The entire funding process goes a long way in ensuring fueled long-term growth.
Selected Services Provided by NexBank Capital, Inc.
Most institutions turn to NexBank Capital for assistance in servicing loans. They ensure that their quality service runs across all the industries. Some of the services they endeavor in include; individual servicing organization, managerial agent, collateral trustee, and non-investment grade mortgages. NexBank Capital is a time-proven financial institution known to help in boosting revenues and visibility across accounts. Their customers enjoy assured vital treasury functions and competencies.