As GreenSky Credit’s value soars, company expands to more than 17,000 retailers

GreenSky Credit has come from seemingly nowhere to morph into one of the darlings of the fintech sector. The company was founded in 2006 by David Zalik, a former child prodigy with a long track record of successful ventures. Since that time, GreenSky has roundly proven its business model, going from a self-financed startup to become one of the most valuable companies in the fintech industry.

Growth that won’t quit

GreenSky has experienced phenomenal growth in every year of its existence. The company started out focusing on an extremely narrow niche: providing loans to retail customers who were looking to carry out expensive home renovations but who didn’t have the necessary cash on hand. That business model proved to be such a success and the GreenSky platform so scalable and adaptable that the company has since expanded into dozens of new markets. These include everything from elective medical procedures to dental procedures to aluminum siding. But GreenSky still counts loans for home renovations as its main business line.

The secret to the company’s success has been the fact that it creates real value for all parties involved in its transactions. In the case of home remodeling, the typical projects that the company’s finances are value-creating. This means that the total value that the remodeling projects add to the homes tends to far surpass the cost of the project itself. This is especially true because the majority of the projects for which the company generates loans are on high-end homes where improvements are typically rewarded in the marketplace. This stands in contrast to lower-end houses, where investing too much money in improvements to the property can quickly lead to nicest-house-in-the-neighborhood syndrome, a situation that real estate agents strenuously warn against.

But the company’s borrowers are also in the prime category. This means that GreenSky is not only creating great value for its borrowers and its retailers, but it is also creating strong business opportunities for its lenders, who love getting more prime loans on their books. All told, every party to the company’s transactions wins in a big way. And that is a long-term recipe for success that any business can benefit from.