Chicago, November 20, 2015
LQD Business Finance, a Chicago-based, technology-enabled alternative lender that provides all and medium-sized businesses with structured loans, has closed a $30MM credit facility with Route 66 Ventures. The credit facility will help LQD accelerate growth and expand lending operations nationally. “We are thrilled at closing this deal, and could not have better partners moving forward than the team at Route 66,” said George Souri, LQD’s CEO.
LQD Business Finance was launched in 2013 to offer structured small business financing solutions, a currently unserved gap in the small business lending market. “Small businesses today have essentially three options: they can try to get a loan from their bank, they can turn to an online cash advance company, or they can use a P2P lender. Each of these options, however, has significant limitations. Since we started development, our intention was to fix the flaws in these early small business lending models and bring a company to market that has a platform which is robust enough to actually replace the bank, instead of just taking share at the margins. We are the only company with a comprehensive small business lending solution, and the Route 66 facility is a major step in helping us fundamentally change the way people think about small business lending,” said Souri.
LQD uses a proprietary risk management and underwriting software called LQD Matrix, which improves upon existing underwriting techniques by considering loan structure and price as fundamental risk factors when assessing the risk of each potential loan. This capability allows LQD to offer more options to small businesses at lower rates, while also enabling the company to manage risk more effectively.
Another advantage LQD touts is its customer acquisition model. According to Souri, “A significant challenge to alternative small business lenders today is customer acquisition cost. We have developed a technology-enabled customer acquisition model that significantly reduces our costs and increases our return on each dollar of CAC invested.”
Jim Rothberg, a Route 66 partner, said LQD is well-positioned to address a gap in the small business loan market, and we’re looking forward to supporting the company’s compelling growth plan. LQD has developed exceptional credit risk management capabilities and a sustainable marketing strategy that enables it to meet the liquidity needs of small businesses in a prudent, cost-effective manner.
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.
Senior Marketing Associate, LQD Business Finance
Phone: (312) 444-0625