No matter what your situation — needing immediate funding for real estate, a new business, college tuition, or a vacation home — what’s important is that you choose your lender wisely.

Here are seven key advantages of a securities loan and what makes EFH your best choice.

1. A fast transaction

Providing that all necessary documentation of ownership is supplied and transfers are promptly approved, EFH can have your funds to you within days. If you have an urgent or personal need that requires a very fast turnaround, we’re here to help.


2. Fair share pricing

A method of setting a fair “strike price” (the price per share that determines the value of your collateral) is a key factor in legitimate loans. EFH uses a proven three-day average pricing model for every securities loan. Click here to see an example.


3. Low fixed interest rates

Compared to traditional loans and margin accounts, our securities loans carry a lower fixed interest rate. EFH sets very competitive, simple fixed interest rates which are noncompounding. Current rates range from 3 percent to 5 percent, depending upon the quality of the pledged assets.


4. Nonrecourse

Since pledged shares are the only collateral for the loan, there is no personal recourse to you in the event of default. If your stock is worth less than the value of the original loan you may simply walk away and owe nothing further.


5. Fair loan-to-value (LTV) ratio

EFH offers a fair and competitive LTV ratio, depending on the value of your stock. Our loans have LTVs that give you the best percentage ratio predicated on EFH’s assessment of the amount of risk associated with the asset.


6. Unlimited upside potential

As long as your loan is not in default, you retain the opportunity to benefit from the stock’s upside potential over time. At the end of the loan term, if you repay the loan, EFH returns the same amount of pledged collateral to you, regardless of any price appreciation at that time.


7. Flexible terms

Loan terms range from two to five years, with the average term being three years. Extensions and refinancing options are available. EFH will work with you to structure a loan that fits your time frame.

A note about risks
There may be tax or other risks associated with securities loans for some individuals. You should consult with your tax or legal adviser to help you assess your rights and any such risks.