GreenSky credit has become one of the most successful companies within the world of fintech. And it has done this through creating huge value for all of the parties to its transactions.
The company was founded in 2006 by David Zalik, a serial entrepreneur who had been working with some of the biggest companies in the home improvement space. Zalik saw a golden opportunity in the niche market of high-end home remodeling projects. Many of these projects cost in the high-five- to low-six-figure range. And this meant that the vast majority of customers who were looking to carry these projects out were prime to ultra-prime borrowers, with many customers having FICO scores of 800 points or higher.
Putting it together
Zalik knew that these customers would make ideal borrowers for a number of the largest lenders in the nation. In fact, because he had extensive knowledge of the banking industry, Zalik correctly foresaw that he would be able to easily convince some of the largest lenders in the country to partner with him and loan money to these borrowers. He also knew that he would be able to negotiate loan terms that were among the best in the business due to the fact that he would be able to bring his lending partners huge volumes of business.
This turned out to be right. GreenSky now partners with some of the largest and most trusted lenders in the country, including Fifth-Third Bancorp, Region’s Bank and Sun Trust. The company is able to loan amounts of up to six figures on incredible terms. GreenSky loans usually require no payments or interest for the first full year. After that, rates can kick up as high as to 18 percent. But the vast majority of GreenSky customers pay off their loans before the higher rates ever kick in.
At the same time, the company’s customers get a fantastic value by being able to finish their home improvement projects, which often add far more to the value of their homes than the projects themselves cost.