After the Great Recession, most of the traditional institutions tightened their lending rules to curb more risks that are associated with bad loans. From 2008 to 2011, offering loans to small businesses dropped by 18 percent as the sector suffered greatly. Thus, private ventures suffered due to lack of money to run their functions with many forced to close their doors. Most of the small businesses highly depend on external lending sources before they develop to sustainable levels and more information click here.
Equities First is one of the few companies in the world that mind about SMEs. The company was commenced in 2002, and with 15-years experience, it provides stock-based loans to small business owners and high net-worth individuals seeking for fast and urgent capital. Alternative lending is the modern way of borrowing capital without suffering from the dependency of traditional lending institutions. Not qualifying for traditional loans should not deter you from growing or developing your company. Apart from banks tightening their lending standards, the situation has been made harder by the reduction of inter-bank loans where banks are not ready to loan other lending institutions and learn more about Equities First Holdings.
After the financial era, many businesses and investors were affected in one way or another. But that does not make starting of small businesses impossible. Every potential investor can benefit from Equities First loans where the company uses your publicly traded stock as collateral. The loans come with multiple benefits as borrowers can use their loans according to their need (non-purpose feature) and can also walk away from paying the lender while leaving the collateral held by the company at any time (non-recourse feature) and resume it.
Stock-based loans from Equities First come with a fixed and small percentage of between 3 to 4%. They also have a higher loan to value ratio which is of added advantage to the borrower. You can check this link, http://www.equitiesfirst.co.uk/ for more information about the company.