CHICAGO, Nov. 18, 2015 /PRNewswire/ -- LQD Business Finance, a Chicago-based small business lending firm, has closed a $30 million 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 is a national business finance company that offers small businesses greater options for their financing needs than banks or existing alternative lenders. LQD offers loans of up to $2 million in as little as 5 days to a range of businesses using its proprietary risk management platform LQD Matrix. Experience the LQD difference and focus on what matters, like running your business. For more information visit www.lqdfinance.com.
About Route 66 Ventures
Route 66 Ventures is a private investment firm which makes venture capital and credit investments in emerging financial services companies. The investment team is a group of former operators of successful specialty finance and technology companies, with deep experience in capital markets, risk management, finance, marketing, and strategy formulation. Route 66 is employee-owned with no limited partners, enabling it to take a long-term view of its portfolio, execute transactions rapidly, and make follow-on investments easily. For more information, visit www.route66ventures.com.
SOURCE LQD Business Finance