For many wealth managers, private client solicitors, accountants, trustees and STEP practitioners, the most difficult client conversations do not always begin with investment performance, tax planning or succession strategy.

They begin with a much simpler question:

“I need access to capital. What are my options?”

That question can appear straightforward. In reality, it can expose a serious weakness in the advisory relationship.

A client may have significant wealth on paper, but that wealth is often held in ways that are not immediately liquid. It may sit inside an investment portfolio, a family investment company, a trust, a corporate structure, a family office arrangement or a carefully constructed estate planning strategy.

When that client suddenly needs £500,000, £1 million or more, the obvious routes can be unattractive. Drawing dividends may trigger tax. Selling investments may crystallise gains or disrupt a portfolio strategy. Extracting capital from a structure may undermine planning that has taken years to put in place.

This is where many advisers are exposed.

Not because they lack expertise in their own field, but because they may not be aware of the liquidity options available outside traditional income extraction, asset sales or property finance.

That gap can be commercially dangerous.

A Real Example: The £6 Million Business Sale Client

Willow Private Finance was recently approached by an adviser whose client had sold a business for approximately £6 million.

The proceeds had been placed into a company structure. The client then needed access to around £1 million.

The issue was not that the client lacked wealth. The issue was how to access that wealth efficiently.

Taking the funds as dividends was unattractive because of the tax implications. Liquidating investments was also undesirable. The client wanted access to capital without disturbing the wider structure unnecessarily.

The adviser had only recently become aware that Willow Private Finance could access Lombard and securities-backed lending solutions. These facilities can, in appropriate circumstances, allow clients to borrow against qualifying investment assets rather than sell them or extract capital in a tax-inefficient way.

The difficulty was that another wealth management firm had already approached the client. That competitor was offering not just investment management, but also access to an in-house Lombard facility.

That changed the dynamic completely.

The risk was no longer just that the client might lose interest by sitting in cash, although the client had already missed out on around £60,000 of potential interest. The bigger risk was that the adviser could lose the entire £6 million client relationship because another firm could solve a liquidity problem they could not.

For a wealth manager, accountant, solicitor or trusted adviser, this is the part that matters.

Clients do not always move because someone promises a better portfolio return. Sometimes they move because someone else solves the practical problem in front of them.

Liquidity Is Now A Client Retention Issue

High-net-worth clients often have complex financial lives. They may be asset rich, but that does not mean they have convenient access to cash at the point they need it.

A business owner may sell a company and hold proceeds inside a corporate vehicle. A family may hold wealth within trusts or investment structures. An entrepreneur may have substantial investments but need immediate liquidity for a property purchase. A family office may want dry powder for acquisitions without disrupting long-term portfolio positioning.

In these situations, the wrong answer can create several problems at once.

It can trigger unnecessary tax. It can disturb investment strategy. It can force asset disposals at the wrong time. It can delay transactions. And, critically, it can create an opening for a competitor.

This is why securities-backed lending is becoming increasingly relevant to private client advisers. It is not simply a borrowing product. It is a liquidity planning tool.

For a broader explanation of how these facilities work, Willow Private Finance has published a full guide here:
https://www.willowprivatefinance.co.uk/securities-backed-lending-in-2025-how-it-works-and-who-its-for

What Is Securities-Backed Lending?

Securities-backed lending allows eligible clients to borrow against qualifying investment assets without immediately selling those assets.

Depending on the lender, asset type, portfolio composition and borrower profile, lending may be secured against listed equities, bonds, managed portfolios, funds, cash deposits or other acceptable investment assets.

The client retains exposure to the underlying portfolio while accessing liquidity through a loan or credit facility.

This is often referred to as Lombard lending, particularly in the private banking and high-net-worth lending market. Willow Private Finance has covered this in detail here:
https://www.willowprivatefinance.co.uk/lombard-lending-explained-the-2025-uk-guide-for-hnw-clients

The important point for advisers is not that every client should borrow against investments. They should not.

The important point is that where a client already has substantial qualifying assets, securities-backed lending may provide an alternative to forced asset sales, dividend extraction or short-term restructuring.

Why This Matters For STEP Practitioners And Private Client Advisers

STEP practitioners, trustees and private client solicitors frequently deal with families where wealth is structured for long-term preservation, succession planning or tax efficiency.

That structuring can be highly effective. But it can also create practical liquidity challenges.

A beneficiary may need capital. A family may want to assist the next generation with a property purchase. Trustees may need to consider whether selling assets is in the best interests of the trust. A family investment company may hold substantial value, but extracting funds personally may create tax consequences.

In those situations, the question is not simply:

“Can the client afford it?”

The better question is:

“What is the most efficient way to create liquidity without undermining the wider planning strategy?”

That is where securities-backed lending can become relevant.

Willow has written specifically on the integration of securities-backed lending into wealth, tax and estate planning here:
https://www.willowprivatefinance.co.uk/integrating-securities-backed-lending-into-wealth-planning-tax-estate-and-investment-considerations

The Property Finance Connection

One of the most common reasons wealthy clients need liquidity is property.

A client may want to buy a UK property quickly. They may be purchasing before selling another asset. They may be an international client acquiring a UK home. They may be helping children onto the property ladder. They may be buying through a company, trust or family office structure.

Traditional mortgage lending is not always the cleanest route, especially where income is complex, assets are international, or speed is important.

Securities-backed lending can sometimes provide a more flexible route, particularly where the client has a strong investment portfolio but does not want to liquidate it.

For clients using Lombard lending to buy UK property, Willow has a dedicated guide here:
https://www.willowprivatefinance.co.uk/using-lombard-loans-to-buy-uk-property-in-2025

There is also a wider guide on property finance using securities-backed lending here:
https://www.willowprivatefinance.co.uk/property-finance-with-securities-backed-lending-unlocking-liquidity-without-selling-investments

For international clients using global portfolios to support UK borrowing, this article may also be relevant:
https://www.willowprivatefinance.co.uk/cross-border-opportunities-using-global-portfolios-for-uk-securities-backed-loans-in-2025

The Adviser’s Blind Spot

The danger for advisers is not necessarily that they give bad advice.

The danger is that they do not know the option exists.

If a client asks for liquidity and the adviser can only discuss dividends, income, disposals or conventional lending, the client may assume that is the full universe of available options.

But if another adviser introduces Lombard lending or securities-backed finance, that adviser immediately appears more sophisticated, more connected and more commercially useful.

That matters.

For wealth managers, it can mean losing assets under management.

For accountants, it can mean another professional relationship becoming more central to the client.

For solicitors and trustees, it can mean the client or beneficiary starts looking elsewhere for joined-up advice.

For STEP contacts, this is the commercial risk: liquidity needs are often the moment when dormant client dissatisfaction becomes active client movement.

Borrowing Is Not Risk-Free

This is not an argument that every wealthy client should borrow against their investments.

They should not.

Securities-backed lending carries real risks. If asset values fall, the lender may require additional security, partial repayment, portfolio rebalancing or other action. This is commonly known as margin call risk.

Clients must understand the implications of market volatility, loan-to-value limits, liquidity requirements, interest costs and facility terms.

Willow has covered these risks in more depth here:
https://www.willowprivatefinance.co.uk/risks-in-securities-backed-lending-market-volatility-margin-calls-and-how-to-protect-yourself

There is also a dedicated article on margin calls in Lombard lending here:
https://www.willowprivatefinance.co.uk/margin-calls-in-lombard-lending-risk-management-in-2025

This is why suitability, advice and lender selection matter. The role of an experienced finance broker is not simply to find leverage. It is to understand the client’s objective, the structure of their assets, the risks involved, the repayment strategy and whether the proposed facility genuinely fits the wider planning context.

Why Independent Access Matters

One issue with in-house lending solutions is that they can be tied to asset management.

A wealth manager may offer a lending facility, but only if the client transfers investments to that firm. For clients, that may be convenient. For the existing adviser, it can be a major retention risk.

An independent broker can often help advisers protect the client relationship by introducing lending options without requiring the client to move investment management to a competitor.

That distinction is important.

The adviser remains central. The client receives a possible liquidity solution. The investment, legal and tax strategy can remain coordinated. The lending advice sits alongside the existing advisory team rather than replacing it.

For advisers comparing provider types, Willow has explored the difference between private banks and specialist lenders here:
https://www.willowprivatefinance.co.uk/private-banks-vs-specialist-lenders-who-offers-the-best-securities-backed-lending-in-2025

A More Complete Advisory Conversation

The strongest private client advisers are increasingly those who can identify when different disciplines need to be brought together.

A tax adviser does not need to become a finance broker.

A solicitor does not need to become an investment manager.

A trustee does not need to arrange lending directly.

But they should all understand when a liquidity requirement may benefit from specialist finance input.

That awareness can change the conversation from:

“You may need to sell assets or take dividends.”

to:

“There may be lending options against the portfolio or structure. Let’s explore whether they are suitable before making a decision.”

That is a very different client experience.

Final Thought

Wealthy clients rarely judge advisers only on technical knowledge. They judge them on whether they can help solve real problems at important moments.

Liquidity is one of those moments.

When a client needs capital, the adviser who can coordinate the right solution may protect the relationship, preserve assets under management, reduce unnecessary disruption and strengthen their position as a trusted adviser.

The adviser who cannot may leave the door open for someone else.

For STEP practitioners, wealth managers, accountants, trustees and private client solicitors, securities-backed lending should not be viewed as a niche lending product.

It should be understood as part of the modern private client planning toolkit.

Not because it is always the answer.

But because when it is the answer, not knowing about it can be expensive.

Speak To Willow Private Finance

Willow Private Finance works with high-net-worth clients, entrepreneurs, family offices, trustees and professional advisers to explore complex lending solutions, including Lombard lending and securities-backed finance.

Where appropriate, we can help advisers assess whether a client may be able to access liquidity against qualifying investment assets without immediately selling investments or extracting funds in a tax-inefficient manner.

👉 Explore Our Securities-Backed Lending Hub:
https://www.willowprivatefinance.co.uk/securities-backed-lending--everything-you-need-to-know