A Look at GreenSky Credit’s Business Model

GreenSky Credit, a financial firm based in Atlanta, is one of the leading companies based on consumer finance marketplace specializing in retail, home improvements, and healthcare loans. It has established itself with customers across all the 50 states. Since its inception, the firm has played a pivotal role in transforming small and medium-sized business and consumer credit while providing a cheaper, persuasive way of access financing. In fact, GreenSky Credit has built its business model on its ability to offer customers credit solutions that greatly improve their sales.

The firm has partnered with reputable banking institutions like Sun Trust Banks and Regions Financial Corp while incorporating its online mobile app to offer lending services to 12,000 customers from different financial backgrounds. Some of the company’s customers include retailers like The Home Depot Inc and individual contractors. GreenSky also deals with retailers who engage in home improvement projects such as roofing, door and window replacement, and flooring among other services. It also provides loans to customers to finance non-insured medical procedures.

Since its inception, the CEO Zalik has slowly but surely created one of the largest privately owned financial technology firm in the country. Although most financial startups have publicly gone against the banking system and positioned themselves as a better option, GreenSky CEO did the opposite. He partnered with banks while running the company smoothly. As such, the banks are the ones that hold loans on their balance sheets. Moreover, GreenSky credit is not exposed to risk of defaults since it profits from the relationship between its clients and the banks.

With a stable working capital from the banking institutions and a steady stream of well-off customers, GreenSky has maintained a profitable curve over the last five year. According to Forbes, the company made an estimated profit of $250 million in 2017. Moreover, Moody’s estimated the firm’s yearly revenue at over $400 million for the year 2018. Despite the IPO allowing Zalik to shed off some shares, he is still the owner with approximately $2.5 billion worth of shares according to Forbes.