Franchise Glossary
SBLOC (Securities-Backed Line of Credit)
What is SBLOC (Securities-Backed Line of Credit) in franchising?
A revolving credit line secured by an investment portfolio, including stocks, bonds, and ETFs, without requiring the assets to be sold. SBLOCs offer access to capital at relatively low interest rates and can be a faster, less disruptive alternative to liquidating investments. As a franchise funding tool, they are most useful as an equity injection or working capital supplement for buyers with a significant investment portfolio who want to avoid triggering capital gains taxes by selling.