GreenSky, Inc., was founded back in 2006 and its headquarters are in Atlanta, Georgia. The company is in the financial technology market and partners with banks and other merchants to provide consumers with loans for healthcare, home improvement and other vital purposes through GreenSky credit. The company’s primary customer base is home remodeling contractors and homeowners.
GreenSky credit provides its services through a mobile app which it markets to contractors who in turn introduce it to homeowners as a tool to enable them to apply for loans. The main selling point for the contractors is that it helps them attract more customers to their business. GreenSky credit doesn’t, however, use its capital to finance the loans. Instead, it partners with banks that provide the loans. The contractors and the banks pay a certain percentage of the loan amount to GreenSky. This is a genius business plan since the company transfers most of the risk and work to the other parties and still benefits from both sides.
The company’s CEO and co-founder David Zalik is an Israeli immigrant who was raised in Alabama since he was four years old. He never graduated high school or college. His father was a mathematics professor at Auburn University where Zalik attended part-time classes after turning thirteen and later enrolled full time instead of going to high school. At some point, he started buying computer parts and assembling them to PC’s and then selling them. He later dropped out to focus on his company MicroTech which he later sold when he was twenty-two for a couple of million dollars.
After starting the company in 2006, it wasn’t until around 2013 that the GreenSky credit model that involved contractors began showing some promise. Over the years the company has sold some of its stock to other investors, but Zalik still owns the majority of the company which puts him on the mark of billionaires with a net worth of about 2.5 billion.
The GreenSky Credit provides the loans in a matter of hours in a few simple steps; a contractor is chosen, approved and trained and later chooses the type of loans he wants to offer his customers, he then pitches it to a potential customer and helps them apply and when approved receives an account number. If the customer accepts the terms of the loan, the payment is approved to the contractor by providing the account number and paying a percentage of the amount to the contractor according to their agreement. The contactor then receives the loan within 24 hours.