GreenSky Credit has been making waves as one of the most successful fintech startups in recent years. The company has expanded to include more than 17,000 retailers selling its loans and more than $5 billion per year in loan originations. And the company just keeps on growing. GreenSky Credit has now expanded into a number of new markets, including out-patient surgical procedures, aluminum siding and even dentist offices.
Home remodeling still forms core business
But the core of the GreenSky Credit enterprise has always been home remodeling. Specifically, GreenSky Credit is the first company in history to offer a form of instantly approved bridge financing for consumers at the retail level.
This is such an important leap forward for those looking to do high-end home renovations that it is almost hard to believe that it didn’t exist prior to 2006. And it is driven by one immutable truth of the real estate business: Construction is expensive.
One of the most challenging aspects of real estate development at the commercial level has always been the financing of major projects. Cost overruns and cash shortfalls are just part of the game in the real estate development field. That’s why commercial developers have access to sophisticated and flexible bridge financing options that can allow them to push projects through when the financing gets tough. Without bridge financing, a huge number of major real estate projects simply wouldn’t ever get done.
GreenSky Credit saw the same kinds of opportunities, albeit at a much smaller scale, that existed within the consumer home renovation market. At their core, home renovation projects share many features of commercial real estate development, especially the fact that most high-end home renovation projects are expected to add more value to the home than they cost. All of this meant that a consumer-facing bridge financing capability would make a ton of sense.
And the last 13 years have shown that it does make sense. GreenSky Credit continues to grow at a phenomenal pace. David Zalik, the company’s founder, believes that the firm will be doing more than $20 billion per year in new loan origination by the year 2020.