Quantius Insights on Lending - Quarterly Newsletter
Communication matters. It's the bedrock of every successful relationship, business and otherwise. At Quantius, we believe that it's not only about communication and speaking openly, we are also pretty good listeners.
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july 2019: Agile Evaluation - The different stages of deal qualificatioN.
Between the many, yet necessary, steps between origination and qualification, borrowers find themselves anxiously lingering in the uncertain stages of due diligence for months before they learn the fate of their loan application – which, quite often, is a no. A key learning for Quantius has been that borrowers prefer fast disqualification with clear feedback on the drivers.
This allows the client company (i.e. the prospective borrower) to create tangible milestones and have a better understanding of expectations, and may be one reason why Quantius has invested in some companies with whom the relationship started well before the actual investment. So how do we accelerate the qualification process and try to make life easier for our already-stressed out clients?
Q1 & Q2 2019: WHy a good story matters.
One of the questions I get asked most often is what I look for when evaluating a potential lending prospect. My answer surprises a lot of people.
Given my credit background and lens, everyone expects me to state that financials, or some specific ratio, are a key factor. The reality is, what I look for has two essential elements. And it all starts with a good story.
I always start by listening to the story of the company: who they are, where they have been, where they are at now, and where they want to go. It's hearing this complete story that allows Quantius to decide if this particular company's story is one we can buy into.
Q4 2018: MISSION ACCOMPLISHED.
As you look forward to enjoying some quality time with family and friends (and some well-deserved R&R), the Quantius team would like to take this opportunity to extend our best wishes for a wonderful holiday season.
2018 has been a very busy and very good year for Quantius. Here's a quick recap of some highlights, specifically related to the innovative companies we helped grow and expand.
Q3 2018: EXITS.
“Every exit is an entry somewhere else” ~ Tom Stoppard
Adding to our loan exits, Quantius was recently paid out of the second loan we underwrote. With that, here is a special commentary on our perspective of exits by Len Kofman, our Chief Credit Oﬃcer.
Q2 2018: How to evaluate the right bridge to equity.
As we near the half-way mark of 2018, we wanted to share our perspective and insights on one of the main issues facing growing innovative companies: the right time to get equity, versus the right time to get debt. This is a complex topic and the answer is diﬀerent for each company.
Many of the innovative knowledge-based companies we talk to are near, or at, an important inﬂection point: They have created a product and proved that it fulﬁlls a need, yet are challenged to reach the necessary scale.