"Using personal guarantees is one of the worst risk decisions you can make as a lender." - Mike Mondelli, CEO of Verdata That's a bold claim from someone who built L2C, sold it to TransUnion for millions, then led their global alternative data strategy across 5 continents. In this episode, Mike reveals why personal credit scores simultaneously underestimate risk AND miss growth opportunities in SMB lending—and what alternative lenders must do about it. The uncomfortable truth: If you're still requiring personal guarantees for every business loan, you're selecting for borrowers who can't qualify with more progressive lenders. You're getting adverse selection and calling it risk management. In this conversation, you'll discover: Why a business owner's 780 credit score won't protect you when their company crashes (and why a 650 won't tell you their business is scaling rapidly)The commercial identity matching nightmare that's costing you deals—and why Verdata is on their 8th generation algorithm to solve itAlternative data sources that actually predict business performance: verified bank data (Plaid), marketplace sales (Shopify/Amazon), consortium lending data, and moreHow companies like Paraffin are already writing loans to Amazon merchants WITHOUT personal guarantees using marketplace data aloneWhy commercial lending regulation will mirror consumer lending within 24 months—and what to build now before you're forced to retrofitThe reality about 90% of US businesses (under $10M revenue): they're thin-file equivalents, and traditional bureau data fails them Mike's background: Founded L2C in 2000 to solve the thin-file consumer credit problem, sold to TransUnion in 2014, led TransUnion's global alternative data strategy across US, Brazil, India, South Africa, and UK markets, then launched Verdata to bring the same innovation to commercial lending—now aggregating data on ~20 million businesses. Why this matters NOW: 82% of business failures cite cash flow problems as the primary reason. Yet most lenders still prioritize backward-looking personal credit scores over real-time business performance data. The lenders building alternative data infrastructure today will capture disproportionate market share in the massive thin-file SMB segment. The question isn't IF this transformation will happen—it's whether your organization will lead, follow, or become irrelevant. Whether you agree with Mike's controversial take on personal guarantees or think he's completely wrong, this conversation will sharpen your thinking about what actually drives performance in SMB lending. In a market where data infrastructure is becoming the primary competitive differentiator, you can't afford to stay comfortable with outdated assumptions. About Mike Mondelli:Mike is CEO of Verdata, a commercial alternative data platform aggregating information on ~20 million U.S. businesses. He founded L2C (acquired by TransUnion, 2014) and led TransUnion's global alternative data strategy for nearly 6 years across US, Brazil, India, South Africa, and UK markets. Website: https://verdata.com/Mike Mondelli: https://www.linkedin.com/in/mikemondelli/ 🎯 Perfect for: Alternative lenders, fintech operators, credit analysts, underwriters, risk managers, and anyone involved in small business financing 📊 Mentioned Companies/Platforms: TransUnion, Verdata, Paraffin, Plaid, Shopify, Amazon, QuickBooks, Xero
