Majority of small business and individual borrowers no longer depend on conventional lending services only. With different happenings around the world changing the financial industry, innovation way of lending services has increased with the aim allowing SMEs owners to continue funding their businesses and keep their activities in operation. One of the factors that majority of analysts claim it contributed to the financial crisis severity of 2007 to 2010, is the signing of Gramm–Leach–Bliley Act into law by US President Clinton in November 1999. The Act prohibited bank holding companies from possessing other financial organizations. The repeal conveniently scrapped the separation that formerly existed between depository banks and Wall Street investment banks offering a government approval stamp for a global risk-taking banking model. Thus, commerce banks and investment banks like Lehman were enforced into direct competition although some analysts thought otherwise and learn more about Equities First.
While, the US Securities & Exchange Commission in 2004 made the net capital rule to be relaxed enabling investment banks to significantly add the level of debt they handled, leading to growth of mortgage-backed securities in backing of subprime mortgages. The SEC claimed that the self-regulation within investment banks added to the crisis. Today, borrowing from banks is not easier as matters used to be some time back. Equities First is a special company that saw things coming and took the chance to cater for the gap. Headquartered within Indianapolis, US and running other nine working facilities around the world, the company has continued furnishing potential investors with stock-based loans.
The loans entail low interest rates of not more than 4% and bare a non-resource and non-purpose characteristics.
Another factor that put banks into unsuspected burden is the relaxation of net capital rule in 2004 by US Securities & Exchange Commission. The rule empowered investment banks to highly add the level of debts they used to handle. Borrowers can now benefit from a company offering innovation lending (stock-based loans) from Equities First (http://www.equitiesfirst.co.uk/).