Are Stock-based Loans the Future of Capital Borrowing?

Ever thought of your stock assets being a basis for borrowing money? That’s a growing trend right now among investors as discovered by Equities First Holdings LLC. So what are the advantages of stock-based loans over conventional loans?


In the current economic climate, banks and other lending institutions are tightening the grip on their borrowing terms. This move has seen many potential borrowers affected and has led to the search for other alternatives. As Equities First Holdings reports, margin loans and stock-based loans seem to be the answer to accessing quick investing capital—and there are advantages to doing this.


First, stock-based loans have a much lower risk when the market is on the downside. Their loan-value ratio is also much higher compared to margin loans; 50% to 75% for stock-based loans and 10% to 50% for margin loans. The stock-based loans are non-recourse meaning the investor is not bound to the stock loan and can walk away from it when they wish.


Additionally, the criteria for qualification are more relaxed with a stock-based loan. The borrower is not subjected to an excruciating vetting process by the financial institution, neither are they asked to detail where the money will be used. So the borrower has everything to gain from using stock-based loans in accessing capital.


Then it’s a wonder why this form of borrowing hasn’t been a popular channel given the idea has existed for years. Well, previously there was a scandal where lenders used borrower’s stocks to invest in the market, and ran away from the aftermath when the market crashed. But today’s lending institutions have more integrity and transparency, a vital prerequisite for stock-based loans to flourish.


About Equities First


Equities First Holdings LLC is a global financial lender that doubles up as a financial researcher. The financial lender has been on the forefront of providing tailor-made loan solutions to their clients. They have also streamlined their lending process, meaning investors have a quicker access to loans with relaxed application rules.Visit their website


The financial lending institution has been in operation for 14 years and has handled thousands of loan transactions for borrowers. They also have offices in 9 different locations globally to reach as many people as possible in need of financial help.




Mike Baur is a Swiss entrepreneur and business person. He is currently the CEO and managing partner and the co-founder of Swiss Start-Up Factory. Baur, a native of Fribourg in Switzerland began his journey in business at a tender age and had a great experience working with Swiss Private Banking for well over two decades. Mike Baur is a Rochester University graduate with an MBA and also has another Executive MBA from Bern University. Mike started his career as a simple commercial apprentice at UBS and climbed his way up the ladder to become the world’s most respected entrepreneurs with his achievements including securing a seat on the Executive Board of a Swiss Private Bank.

Showing great interest in banking and finance as a young man, his interest grew over time and at the age of 39; he quit his job as a banker at Clariden and Sallfort to help start up the Swiss Start-Up Factory (SSUF) together with two partners namely Max Meister and Oliver Walter. His experience in private banking enabled him to make an easy transition to entrepreneurship, and he uses his experience in providing advice and funding to businesses to run the SSUF. Mike Baur is accountable for SSUF’s fundraising and the company’s financial rounds. The company would eventually grow to heights to become the best private and independent ICT startup accelerator in Switzerland.

Started in 2014, the Swiss Start-Up Factory is a Zurich-based accelerator which was founded with a purpose to help upcoming entrepreneurs who specialize in digital technologies. The independent company does not have a board of stakeholders who they have to report to, and they operate as a business which helps to differentiate them from the rest of Swiss business owners running accelerator programs and incubators. With the company, Mike and his partner’s assists startup companies excel by providing them with any resources they may require, allowing them to make their name known worldwide and at the same time, create new models and marketing the modern unknown products or ideas.

The Start -Up Factory runs a three-month accelerator program that helps a startup company become the best they can be within the shortest period possible. The program provides a unique platform for an array of services such as mentoring, coaching, courses in accounting, connections with successful investors and an entrepreneurial network to achieve goals as well as an office space in Zurich. Through this company, Mike Baur helps provide business assistance to those who need it.