Can Equities Be Used As Loan Collateral?

A lot of small and medium sized businesses have cash flow problems at times. Usually, they will go to a lender who will provide a loan after long, complicated forms are filled out, and a business plan is put in place. The lender needs to know what the loan is for, and has control over the use of the funds.Some of the lenders will accept equities as collateral for loans. The government, however, regulates how much a lender can lend on equities, and the interest rate is usually fairly high. The loan to value ratio on equity loans is low, also.

Equities First AU is a private company, and the government does not regulate private companies in the same manner as they do conventional lenders. The loan to value ratio on equities as collateral at Equities First AU is higher — up to 80 per cent loan to value ratio. The interest rate is much, much lower on equity loans at Equities First, and the borrower can use the money for any purpose they deem necessary. There are no long forms to get in the way, and funding is faster and more convenient.

Equities First is a private company and can help small businesses with emergency loans quickly and easily. Emergencies do occur, and if you have an emergency, taking a month to get a loan is laughable. Equities First AU is there, ready to help. They will listen when others don’t, and they will lend when others won’t.

Leave a Reply

Your email address will not be published. Required fields are marked *