The name David Zalik doesn’t mean anything to the average person. If Zalik could maintain that anonymity, then he definitely would remain in the background. However, he founded financial technology company GreenSky Credit in 2006. His company has grown from a small fintech company into one of the darlings of the industry. It’s a profitable company with a bright future, and 2018 could be the best year for the company yet.
A Relatively Unknown Company By Today’s Standards
As a fintech company, most people would expect GreenSky Credit’s name to be plastered everywhere. Zalik started the company over a decade ago and has remained behind the scenes since then. He has resisted going public or taking on major institutional investors to grow the company. In fact, Zalik maintains a majority of the ownership in his company, which is somewhat uncommon among fintech companies.
What Service Does The Company Provide?
GreenSky Credit is a fintech company rather than a lender. The company works with nearly 20,000 contractors across the country. When these contractors visit a homeowner, they offer services for home improvement projects. From there, Zalik’s company connects potential borrowers with banks willing to lend the necessary funds. GreenSky provides up to $65,000 for each home improvement project.
Contractors can secure a loan approval for a homeowner in seconds. For interested homeowners, a contractor takes their information and plugs it into a smartphone app. The app connects with GreenSky Credit and its network of banks. An approval comes in less than 60 seconds, and then homeowners are ready to renovate their homes. Typically, contractors pay GreenSky a commission, and banks pay a service fee as well.
A Great Setup With Very Little Risk
Since GreenSky Credit doesn’t own the loans, the company faces little risk. A default on a loan doesn’t hurt the company as much as the bank. Still, it’s necessary to point out that positive loan performance means the bank provides more money to GreenSky. The company profits from both contractors and the lenders without assuming much risk. A long-term loan provides an ongoing source of revenue for the company each year.
Rumors Of An Initial Public Offering Arise For GreenSky
GreenSky Credit recently made the first steps toward making an initial public offering. The company has been private since its inception in 2006. By going public, Zalik and GreenSky stand to make a lot of money. An IPO isn’t guaranteed but does show how successful the company has been to this point. Annual revenue reached $250 million in 2017 and is expected to hit $400 million for 2018. With such an incredible business model, Zalik’s company stands to keep making more and more money as time goes on.