LQD Business Finance

What LQD Business Finance does

LQD Business Finance is a Chicago-based, privately held alternative commercial lender operating as LQD Business Finance, LLC since 2015. The company provides custom-structured business loans ranging from $500K to $10M to lower middle-market and SME borrowers across the United States, with disclosed pricing of 12%-19% interest, 6-36 month terms, and 3%-5% origination fees. Its product suite spans ten financing categories — accounts receivable, inventory, purchase order, refinancing, machinery & equipment, growth capital, expansion & acquisition, management buyouts, consolidation & recapitalization, and unitranche financing — unified under a stated promise of broader underwriting than traditional banks or asset-based lenders and closing timelines of 10-30 days, which the company claims is up to 3x faster than conventional lenders.

The firm's technology stack centers on two proprietary, named assets: LQD Matrix, a risk management and backing software, and the LQD Synthesis Score, an underwriting analytics engine that incorporates growth projections and debt-to-equity ratios. These underpin a tech-enabled platform with API technology, automation, and AI applied to credit decisioning. The company additionally developed the LQD PPP Platform during the COVID-19 pandemic in under one month, and in 2021 announced the development of a Bitcoin business lending platform on the Provenance blockchain that would use Bitcoin as lending currency rather than purely collateral.

LQD's go-to-market is sales-led with a self-serve online application on lqdfinance.com, supplemented by a Channel Partner Program that distributes deal flow from brokers and financial advisors through a proprietary 24/7 portal, and dedicated Business Finance Consultants providing direct relationship management. Revenue is generated primarily through interest income and origination fees on originated or supplemented loans, with additional commission economics flowing through the broker channel. The company is founder-led, with George Souri as CEO and Jack Zeng as CTO (promoted in January 2021 from Director of Automation and Special Solutions), and has not disclosed institutional equity rounds beyond a 2015-2016 capital raise led by Route 66 Ventures and Fintech Ventures Fund.

Name

LQD Business Finance

Legal name

LQD Business Finance, LLC

Website

https://lqdfinance.com

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

11–50 employees

Short description

LQD Business Finance is a Chicago-based, tech-enabled alternative lender founded in 2015 that provides custom-structured commercial loans of $500K to $10M to lower middle-market and SME borrowers across the United States, using proprietary underwriting technology and a direct plus broker-channel distribution model.

Ownership category

akta.pro rank

Product category

Commercial Lending

NAICS

Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Supply Chain Finance (Trade Credit, PO/Inventory Financing) (FSAKAGAE)

akta.pro secondary industry

Middle-Market Lending (FSANADAI)

Keywords

• Structured business loans
• Commercial lending
• Alternative lending
• Working capital financing
• Middle market lending

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Technology or R&D, Marketing or Sales, Personnel

Revenue model

1. Business Lending / Interest and Fees: LQD Business Finance generates revenue through interest income and fees charged on its custom-structured commercial loans. Principal amounts range from $500K to $10M with rates between 12%–19%, terms of 6–36 months, and fees of 3%–5%. The company also earns commissions through its channel partner referral program.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels6 records

Core offering

LQD Business Finance provides custom-structured business loans to lower middle-market and small and medium-sized businesses in the United States, with principal amounts ranging from $500K to $10M, interest rates of 12%–19%, terms of 6–36 months, and origination fees of 3%–5%. The company offers nearly 50 different types of financing options including accounts receivable financing, inventory financing, purchase order financing, refinancing, machinery & equipment financing, growth capital, expansion & acquisition financing, management buyouts, consolidation & recapitalization, and unitranche financing, all powered by proprietary underwriting and risk management technology (LQD Matrix and LQD Synthesis) that enables funding within 10–30 days.

Product overview

LQD Business Finance operates as a tech-enabled alternative lender offering a portfolio of structured business financing solutions to the lower middle-market. The core offering consists of ten distinct financing products: Accounts Receivable Financing, Inventory Financing, Purchase Order Financing, Refinancing, Machinery & Equipment Financing, Growth Capital, Expansion & Acquisition, Management Buyouts, Consolidation & Recapitalization, and Unitranche Financing. These products are unified by proprietary technology platforms—LQD Matrix (risk management) and LQD Synthesis (underwriting/scoring)—which enable custom loan structures and faster decisioning. The company also developed the LQD PPP Platform for pandemic relief applications and is building a Bitcoin Business Lending Platform. A Channel Partner Portal provides brokers real-time access to track loan activity.

Differentiator

Problem solved

Functional benefit

Products and services

• Accounts Receivable Financing Allows businesses to leverage outstanding invoices to obtain liquid capital by securing loans with accounts receivable, providing cash flow without waiting for customer payments. Targeted at lower middle-market businesses.
• Inventory Financing Provides loans to purchase inventory upfront, helping businesses stock products for seasonal fluctuations or unexpected growth while preserving working capital. Targeted at lower middle-market businesses.
• Purchase Order Financing Covers the upfront costs of verified purchase orders when businesses lack sufficient funding to fulfill large orders or multiple orders at once. Targeted at lower middle-market businesses.
• Refinancing Configures refinancing solutions that replace existing loans with new ones bearing more favorable terms, potentially lowering interest rates and improving term lengths. Targeted at lower middle-market businesses.
• Machinery & Equipment Financing Supports purchase of new or used assets like vehicles, appliances, and equipment needed to maintain operational efficiency and keep pace with demand and competition. Targeted at lower middle-market businesses.
• Growth Capital Provides financing to sustain daily operations and manage cyclical expenses while pursuing long-term development objectives, keeping revenue streams intact during expansion. Targeted at lower middle-market businesses.
• Expansion & Acquisition Financing Financing for opening new locations, hiring employees, purchasing equipment, and acquiring other businesses to boost portfolio and elevate company operations. Targeted at lower middle-market businesses.
• Management Buyouts Facilitates smooth transition of ownership for management teams ready for buyout, providing funding up to $10M in under 30 days for time-sensitive buyout processes. Targeted at lower middle-market businesses.
• Consolidation & Recapitalization Merges existing debt into a single loan to streamline repayment, potentially lowering interest rates and monthly payments while boosting cash flow and credit scores. Targeted at lower middle-market businesses.
• Unitranche Financing Hybrid loan structure combining senior and subordinated debt with a single blended interest rate, simplifying funding by avoiding multiple debt agreements across various lenders. Targeted at lower middle-market businesses.
• Channel Partner Portal Real-time portal for brokers and channel partners to track customer activity, manage deal submittals, deal flow, and centralized document management across all phases of the loan process. Used by brokers and financial advisors.

Quantifiable outcome

• Funding up to $10.0M in under 30 days, described as up to 3x faster than conventional lenders
• +4 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature5 records

Scale indicators4 records

Recent moves6 records

Expansion highlights4 records

Direct peers

• BlueVine: BlueVine provides invoice financing, lines of credit, and term loans to small and mid-sized businesses via a tech-enabled platform — directly overlapping LQD's AR financing and SMB working capital products.
• OnDeck: OnDeck originates short-term term loans and lines of credit to SMBs using a data-driven underwriting model — comparable to LQD's custom-structured SMB lending with fast decisions.
• Funding Circle: Funding Circle operates a marketplace lending platform providing term loans and lines of credit to small businesses — overlapping LQD's lower middle-market loan products and tech-enabled origination.
• Credibly: Credibly provides working capital loans, merchant cash advances, and small business financing to SMBs — directly comparable to LQD's custom-structured working capital and growth capital products.
• Kabbage (American Express): Kabbage, acquired by American Express, provides lines of credit and working capital to small businesses via a data-driven platform — directly comparable to LQD's tech-enabled SMB lending model.
• Fundbox: Fundbox provides lines of credit and short-term working capital loans to small businesses via a tech-enabled platform — directly comparable to LQD's SMB working capital and short-term business credit products.
• Kapitus: Kapitus provides working capital, term loans, SBA loans, and equipment financing to small businesses — directly comparable to LQD's multi-product SMB lending suite and growth capital offerings.
• Currency (formerly Currency Capital): Currency provides SBA loans, commercial real estate loans, and business financing solutions to SMBs — comparable to LQD in the SMB structured finance segment.
• StreetShares: StreetShares provides term loans and lines of credit to small and veteran-owned businesses via an online marketplace — overlapping LQD's SMB lending focus and digital origination.

Emerging players

• Accion Opportunity Fund: Accion Opportunity Fund provides small business loans to underserved SMBs, including those outside traditional bank criteria — comparable to LQD's mission of serving the underserved lower middle-market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/lqdfinance
• LinkedInlinkedin.com/company/lqd-business-finance
• Facebookfacebook.com/lqdfinance

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about LQD Business Finance