The recent financial crises that have rocked the world have left many individuals and companies without any of the resources needed to qualify for a traditional loan. Fortunately the great minds at Equities First have devised an alternative for those unable to obtain funds otherwise. Using a lending model that allows people to use stock as collateral Equities First is giving investors a new way to finance projects and handle debt. This model has allowed Equities First to become a global lender with companies across the world relying on Equities First to help them realize their goals.
The Inner Workings Of The Business Model
Conventionally the majority of loans are classified as marginal loans. These are loans that require the borrower to submit to a number of screening measures before receiving the loan. This usually includes a credit score check and other means of insuring the borrower will have the ability to pay off the loan. The collateral loans Equities First gives out have no need for this. The stock the client provides secures the loan far better than any credit score can. Even better than loans backed by stock collateral often have lower interest rates than margin loans.
Trailblazing Out Of Crisis
Equities First opened for business in 2002. Its unique model allowed the company to eventually expand into a global empire with business in more than 9 countries. There aren’t many others in the lending business with a model quite like Equities First and there are even fewer who do it at the scale of Equities First. Whether they are working with a client in need of financial backing for a commercial venture or an individual in need of assistance for their unique situation there is always assistance ready at Equities First.
Dallas based bank, Nextbank, is teaming up with a Dallas nonprofit mortgage lender. The nonprofit that Nextbank will be working with in the Dallas region is called Dallas Neighborhood Homes. Both Nextbank and Dallas Neighborhood Homes have agreed to help home improve ownership in the blighted south Dallas area.
Working alongside Nexbank and Dallas Neighborhood Homes will be the nationally known charity, Habitat for Humanity. The three organizations are targeting to provide up to 100 different loans for low income folks based in southern Dallas.
Nexbank has pledged to provide up to $50 million dollars in loans for the program so far. Partner organization Dallas Neighborhood Homes will use the $50 million offered by Nextbank to lend directly to low income people in south Dallas. Additionally, counseling on home ownership and mortgages will be offered through the Dallas chapter of Habitat for Humanity. Nexbank has also agreed to pay all title expenses for the new homeowners. The bank has also agreed to pay upwards of $2000 per closing cost of each mortgage that it helps fund.
Nexbank is a small regional bank that mostly serves local clients found in the North Texas region. It was founded in 1922. The headquarters of Nexbank is found at McKinney Avenue in Dallas, Texas. A branch location is found at Luther Lane, also in Dallas.
The bank provides traditional retail services such as checking accounts, savings accounts and CDs. Mortgage lending is a big part of the bank’s businesses. Nexbank is estimated to have over $3.5 billion dollars worth of assets under its management.
Commercial lending and investment banking are additional services offered by Nexbank. The bank can lend out to money to businesses for business loans or to help fund real estate developments. The investment banking branch of Nexbank can provide advisory services as well as restructuring.