Ask GreenSky Credit founder what makes the best businesses, and he’ll tell you that it is doing deals where everyone walks away a winner. Zalik has taken this message to heart with the founding of GreenSky Credit, a financial technology company that provides the means and the infrastructure for retailers across the country to offer instant point-of-sale loans for items costing up to the hundreds of thousands of dollars.
Zalik first had the idea for GreenSky when he was working on another one of his companies, an e-consulting company called OutWeb. Zalik was working with some of the largest home improvement companies in the country when he noticed that there was a serious leak in their business models. These companies were routinely losing huge deals when customers who had little or no contracting experience ended up severely underestimating the true costs of home renovation projects. These customers were often coming in tens of thousands of dollars short on their desired home remodels. And this created a cash shortfall that they simply couldn’t bridge.
A huge market gap
Zalik’s eureka moment came when he noticed that a large number of these potential home remodeling customers were in the top of the prime borrower category, with FICO scores in the 800-plus range. The problem wasn’t that these customers didn’t qualify for loans. It was that there was no financing vehicle in the given price range. Once home remodeling projects got much more expensing than about $20,000, the only financing options that were available were things like home equity lines of credit and mortgages. But many banks shied away from these types of credit instruments, especially mortgages that were being used for simple home improvements.
GreenSky credit would enable these borrowers to get instantly approved loans at the point of sale for amounts up to six figures. As a result, GreenSky has single handedly added billions of dollars each year to the home improvement market, facilitating the culmination of deals that almost certainly would have otherwise fallen through without the services of GreenSky.
The company continues to rapidly expand into other fields.