Liquid Logics began not merely as a business venture but as a culmination of a young boy’s dream and a series of fortuitous events.

In the realm of fintech, particularly in the niche of private lending solutions, Liquid Logics’ story emerges not merely as a company that has transformed the private lending landscape but as a narrative rich with innovation, determination, and a relentless pursuit of growth.

And, filled with ”a series of unintended consequences,” adds Sam Kaddah, Liquid Logics’ president and CEO.

Sam, a visionary entrepreneur, founded Liquid Logics in 2004. His journey from aspiring immigrant to technology innovator encapsulates the American dream. As the company embraces generational transition with the addition of Sam’s son Alex Kaddah as chief data analyst, the narrative expands, seamlessly blending generational wisdom with fresh perspectives and new technological insights.

Prologue: Sam Kaddah’s American Dream

As a kid growing up in Damascus, Syria, Sam Kaddah saw a picture of Disney World and Epcot Center and dreamed he would one day see the magical theme park in person. His goal of traveling to the U.S. became a reality in 1986 when he was offered opportunities to attend college at MIT and Wichita State. Although he considered attending MIT, destiny thought otherwise.

“I ended up at Wichita State because of the ease of the paperwork,” he said, foreshadowing two of the tenants of his future company—speed and simplicity for clients. “It was easy for me to come to the state that was known as a strong center for aviation engineering programs and being the place where Cessna, Boeing, Learjet, and, of course, Raytheon were founded,” he added.

After earning a bachelor’s degree in electrical engineering with a minor in computer science, Sam stayed in Wichita to work for Raytheon. Due to a family health situation, he made an unplanned move to Kansas City, Missouri, where he later became the director of the upper Midwest practice for e-security and e-commerce implementation at EY, covering seven states.

In 2001, Sam transitioned to GE Transportation/Global Signaling, leading the company’s global technology and productivity group. Managing 13 sites across four continents, his days began early with calls to India and continued with meetings spanning Europe, the Americas, and Asia.

These roles expanded his knowledge and expertise with technology and, importantly, with complex system management. He also eventually earned an MBA with a focus on information systems.

A Plot Twist: From Engineering to Finance

Unexpectedly, Sam found himself shifting to the financial industry. His global experience at GE led Microsoft to recruit him for their internal global marketing and sales systems. But during a brief break he took before joining Microsoft, a friend asked him to evaluate his bank’s struggling national lending platform.

“They asked me to come in and as a friend, take a look and just tell them what’s going on, just give them a little bit of advice,” Sam said.

Sam addressed the issues at the bank and then moved on to Microsoft as planned. Despite being offered the CTO position at the bank, he couldn’t see himself working there instead of Microsoft, where he would be running global operations and command a higher salary. “It just didn’t add up,” he said.

But in another twist of fate, shortly into his tenure at Microsoft, the bank decided to outsource the software development and have it sold back to them for an eight-figure number over five years. Sam said that knowing such a large contract for outsourced LOS software was at play, he realized there was an opportunity to start his own company, with the bank as his first client.

Assuming the role of entrepreneur in May 2004 allowed Sam to tackle the inefficiencies he observed in loan origination and servicing. The company’s online lending application allowed loan officers and brokers to complete processes swiftly, even before fintech and SaaS became known terms.

“Our claim to fame at the time was in three and a half minutes, you get an application and approval on the fly,” Sam said.

Riding Out the Conflict

Every great narrative has an element of conflict. Sam’s story is no different. His efforts to establish and scale Liquid Logics met numerous challenges. Transitioning from a secure corporate environment to the uncertainties of a startup required a significant shift in strategy and operations. Sam’s leadership through technological challenges and economic downturns, notably the 2008 financial crisis, underscored his resilience and strategic acumen. Four years into the contract with the bank, the economy shifted, and Sam had to adapt.

“By 2008, we had moved on … and had been succeeding,” he said. “Then the financial collapse happens, and I find myself on the fifth year of the [bank] contract with zero income from my most serious customer and 70 people working for me.” But, he said, “I knew how to turn it around.”

Sam took a chance and adapted the software for smaller banks. “I signed up 33 banks and rebuilt it.”

By shifting the company’s focus from major banks to more agile smaller lenders, he ensured Liquid Logics’ survival and subsequent growth.

A New Cast of Characters

By 2014, Sam had “stumbled” across the private lending industry. “We ended up servicing an industry that had no systems, no processes, and an outdated servicing software,” he said.

Recognizing the need for modern solutions, he developed a comprehensive system that allowed Liquid Logics to drive the private lending industry forward.

Today, Liquid Logics provides next-generation cloud-based platforms primarily for private money lenders. The system was built around the borrower experience, with an emphasis on simplicity and speed throughout the entire loan life cycle, from processing and origination to servicing and fund management.

Another Chapter: Alex Kaddah Brings New Generational Insights

The narrative of Liquid Logics began a new chapter with the entry of Alex Kaddah into the business. With master’s degrees in both data and AI systems, he brings new perspectives on using technology to solve traditional problems.

Alex’s approach, aimed at integrating more AI and machine learning into the company’s products, is focused on enhancing decision-making and operational efficiency. The younger Kaddah’s role signifies not just continuity, but a planned evolution geared toward maintaining the company’s competitive edge in a fast-evolving fintech landscape.

Recurring Themes

Under the Kaddahs’ leadership, Liquid Logics has consistently prioritized technological advancement to enhance user experience. The company’s flagship products, the end-to-end Nova platform and the private-label Loansizer, have set industry standards for efficiency and reliability.

These products embody the Kaddah’s vision of a system that not only addresses current market needs but also anticipates future demands, ensuring that Liquid Logics remains ahead of the curve, largely by continuing to make their products relevant to their clients’ entire operations.

“Technology by itself can stay in a vacuum and doesn’t do much,” he said. “But I coupled it with my Six Sigma and process automation experience from the big corporations. So, we did not create just the technology part; we created a complete workflow system.”

“Part of what makes us special is our clients being partners with us,” added Alex.” We have today 17 systems … and my vision is to continue driving that forward and adding new verticals. … Those are going to be directly under my direction. Obviously, we want to stop short of nothing but the best. If there’s a new technology, we want to incorporate it into our systems as we see it necessary. We don’t want to put out something just to say it’s there, however.”

The Kaddahs, who both played soccer in school, note the game has influenced their approach to business and innovation.

“In a weird way, soccer is organized chaos,” said Sam. There is no standard plan you can follow, so you really want to coach to be flexible, to be able to make changes on the field as you go. So, I look at how I’m coaching and moving things forward with my team here [at Liquid Logics] as putting them on an ever-changing field and allowing them to make decisions back and forth. We can stop for a teaching moment and adjust the play. If we have to adapt daily, that’s OK. And the team reacts it to in a smart way.”

This philosophy has permeated Liquid Logics’ operational attitude, fostering an environment where innovation is continuous and encouraged. The company’s agility in adapting to industry changes has not only helped it thrive but has also established it as a leader in developing solutions that are both innovative and necessary.

Alex, growing up witnessing his father’s commitment and grit in an ever-changing industry, has inherited not just the mantle of leadership but also the intrinsic values of perseverance and adaptability.

Alex views his role as both a privilege and a responsibility, aiming to ensure the company not only adheres to its founding principles of innovation, resilience, and integrity but also evolves to meet future challenges.

“At Liquid Logics, we are constantly evolving,” said Alex. “One of our core beliefs we share is that we’re constantly on the move. You can’t catch us if we keep on moving, and we keep moving that target.”

Looking to the future, both Sam and Alex are focused on expanding the company’s technological footprint, venturing into new markets, and enhancing their offerings to meet the evolving demands of the private lending industry.

“At the end of the day, the private lending space is still driven by human connections and interactions,” said Alex. “We’re just lucky enough to be the link between multiple parties and lenders and helping them have success by virtue of us or through a connection from us to someone else. That’s what really continues our success and drives us forward.”

To Be Continued …

Legacy can take many forms, ranging from the passing along of ethics and core values, or the transfer of wealth, even setting an example that guides the future of others.

Sam quickly dismisses those traditional notions of legacy when asked about his own and how he’d like the next several chapters of the Liquid Logics tale to play out. For him, the concept of legacy transcends the success of Liquid Logics. It’s about creating a lasting impact that will continue to influence the industry long after he has stepped down.

“I don’t know that there’s such a thing as, quote, unquote, ‘legacy.’ But I do think there’s a continuity. As long as there’s a continuity, there’s a thought process where people still remember you. And hopefully they’ll remember what they’ll think of as the ‘primitive’ ways I did things,” he said, “and how the next generation made it actually come into the next century. I may have invented the steam engine, so to speak, but now we have electric cars. … That continuity is what I believe legacy could be.”