The financial crisis that occurred between 2007 and 2008 also referred as global financial crisis is described by several economists to be the most hurting after the Great Depression of 1930s. The crisis commenced in 2007 in subprime mortgage market within USA and grew into a full-blown global banking menace after the Lehman Brothers investment bank collapsed in September 15, 2008. Extraordinary risks taken by banking institution like Lehman Brothers facilitated in magnifying the financial effect worldwide. Massive bail-outs within financial firms among other palliative monetary & fiscal policies were utilized to resist a likelihood collapsing of globe’s financial system. Nonetheless, the crisis was followed by the Great Recession; world economic downturn. Later, the European debt crisis within the banking system of European countries that utilized the Euro, followed. And for sure, getting a loan from the same institutions has not been an easy task particularly for small business owners. But all is not lost as there are various institutions that offer different types of lending. For now, alternative lending as hit the market with majority of potential investors preferring to acquire stock-based loans from dependable institutions.
Equities First is the company spearheading in offering shareholding lending services with its headquarters based in Indianapolis. The company has a wide experience of 15 years and has been highlighted in providing borrowers with stock loans which come with multiple benefits as compared to traditional loans. The precipitating issue was a great default rate in USA subprime home mortgage industry, a sector that grew following the motivation of the CRA (Community Reinvestment Act), the USA federal law structured to assist the low and moderate income Americans to acquire mortgage loans. Many of these high risk subprime were then packaged and sold, and lastly accruing to Fannie Mae & Freddie Mac (quasi-government agencies). Equities First runs offices in various continents to help every potential investor who might be seeking for quick and affordable working capital.