A Business Owner Builds Cash Flow Resilience through SBLOC Liquidity
The workweek of the private business owner rarely includes a day off. One early Sunday morning a business owner found himself reviewing his business accounts and strategizing for the period ahead. Several sizable receivables that he had been expecting for weeks were still outstanding. With looming payroll deadlines and business taxes to settle, he realized the urgent need to secure funding quickly to maintain his business’s momentum.
There had been a few previous occasions where he narrowly avoided withdrawing funds from his investment accounts. He understood that such withdrawals would incur tax consequences and sideline future market participation. Then he recalled his financial advisor mentioning several clients utilizing securities-based lines of credit (SBLOCs). Could this be an option to address his current business needs?
