In business, having billions in net worth (through equity) does not mean having liquid cash; liquidity refers to the ability to access funds quickly, which is why ultra-high-net-worth individuals often seek large lines of credit to convert their illiquid assets into usable cash.
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Congratulations, Mr. Newman. There's a $95 annual fee plus a credit limit of $10,000. I think I'm going to need a bit more than that.
>> I can certainly help you with that. How much were we thinking?
>> 50 million.
>> You have $43,000 in your bank account.
>> Google me.
>> Hey, Roger.
>> You are now what we call in the banking industry a UHNWI. You know what that means?
>> No, it means ultra high net worth individual. I understand I think the opportunities. I understand the challenges. Challenges.
>> Yeah. In your case, the challenge is that your business has received billions. But you, Adam Newman, still only have >> $43,000.
Yes.
>> Right. In your bank account. The value of your shares can't be accessed without a liquidity event. So, your primary challenge, Adam, now is liquidity.
>> Make me liquid, Jamie.
>> But a $50 million line of credit, >> I think you need 100 million. And that would give you more optionality.
>> Thanks. Perfect sense.
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