Founder and CEO of LQD Business Finance, George Souri, was recently featured at LendIt USA 2017, on a panel entitled “Short Duration/High Yield: Protecting Against Interest Rate Hikes,” part of the Innovation in Lending track. Along with fellow panelists Philippe Marleau of IOU Financial, Ben Gold of QuickBridge Funding, and Ryan Rosett of Credibly, with moderation by Justin Brownhill of SenaHill Partners, George Souri discussed the nuanced definition of short-term and high-risk commercial lending, as well as the range of products currently being offered.
Speaking specifically to a recent industry-wide increase in default rates, led by the current leaders in merchant cash advance and marketplace lending, Souri noted that “the model of the future…is going to require an alignment of interests between the originators and the credit facilities that are coming into place” something that does not, at this point, exist. He added that the reason these default rates have been 3X than what was predicted is that “the original alternative lending model was focused on making the origination process more efficient, and it took the quality of the credit and the rigor of the underwriting process for granted.”
Souri goes on to explain the ways in which LQD is attacking this problem, most notably by bringing to market the financial sophistication necessary to soundly underwrite at scale, as well as the ability to uniquely structure and price each loan individually.
“The next-generation model is going to come back to focus on not just the quantity of loans, but the quality of the loans.”
Watch the Full Panel
About LQD Business Finance
LQD Business Finance is a Chicago-based tech enabled business lender, founded in 2014 on the notion there was a gap in the micro-middle market. LQD Business Finance delivers structured, flexible and transparent financing solutions to lenders up to $10M in 30 days or less. Working with a diverse network of industries from manufacturing and distribution to wholesale trade,technical services and retailers, LQD Business Finance creates custom-tailored financing solutions specific to each customer’s needs to obtain their business objectives and goals.
Media Contact
Alexandra Runjo
Senior Marketing Associate, LQD Business Finance
Phone: (312) 444-0625
E-mail:alexandrarunjo@lqdfinance.com