Woe is me: this is what could be heard falling out of the mouths of investors when they were categorically denied access to their funds because they are tied up in a long-term investment vehicle that lacks liquidity. There is now a solution to this situation in the form of a non-purpose loan. Although there is some disclosure involved, mainly as to what the loan will be used for, investors rejoice over not having to sell assets, that are likely performing, which is also why they don’t want to sell them, in the event liquidity needs to be established. Equities First, which considers itself to be “a secure, efficient, alternative source of capital,” understands this niche market very well.
Investors need not liquidate their assets, but rather they can call Equities First, have their holdings evaluated, and they can obtain a non-purpose loan against the value of their holdings. This is the greatest way to establish liquidity, in the event it is needed, so as to put your money to work, basically twice. Anyone who has suffered through being on margin, and also holding long-term assets, knows full-well what anguish can result from not having access to those funds.
A firm like Equities First answers a lot of questions for investors, and helps them to get access to funds that have been relegated to a state lacking liquidity. It helps to have a place to turn, and in a lot of ways, this might be a way in which to make even more money on your non-liquid dollars by using a non-purpose loan, so as to make additional investments. The bottom line is this will help you maximize your portfolio returns while leveraging those values without having to sell-out a position.Lamenting a sell-out, because of financial distress, is the sorrow of many investors.
Before non-purpose loans, however, that was all that could be done. Add to this, even if you could sell something, it still take 3 days for settlement. Instead of selling a bunch of bonds, exposing yourself to the deleterious forces of interest rate-forced market devaluation, use a non-purpose loan and let your money continue to accrue interest in your holdings. This is smart business.