Over the past five years, the credit markets across the United States and the rest of the world have been very conservative. While most lenders will still give away secured loans, those that are looking for unsecured personal loans will find that it is very difficult to qualify for loans today. Those that are approved will also have to accept high-interest rates and fees.
While getting a personal loan can be tough today, those that are looking for financing can still get a loan by working with specialty finance firms. One specialty finance firm that has provided hundreds of loans over the past few years to consumers is Equities First.
Equities First provides a unique type of loan in which a consumer will provide a stock portfolio as a form of collateral. The lender will then take a first-lien position in the stock portfolio, which then allows them to liquidate the stocks portfolio if the loan goes into default. Since the lender has a strong piece of collateral, they are then able to provide a loan with low-interest rates and fees. Further, they are often able to provide a loan commitment up to nearly 100% of the stock portfolio value.
Borrowers of stock-secured loans should also be aware of the benefits of these loans. Beyond the low pricing options, borrowers will also find that they are able to benefit by liquidating their stock without actually selling it, which can have significant tax and investment planning benefits.
When taking out a stock secured loan, the borrower will be able to avoid capital gains taxes. Depending on how long the stock has been owned, a borrower could incur a lot of additional taxes by selling. By taking out a loan instead, the borrower will be able to delay the sale, which could push the ultimate sale into a lower-tax period.
Visit http://www.equitiesfirst.com/team for more.