As you watch the black Mercedes SL550 pull drive past, you may not expect somebody like Davil Zalik to get out of the convertible. The CEO and co-founder of Greensky Credit works in a low-rise office building that is showing some clear signs of aginst in the outreaches of Atlanta. He jokes about the office of his company being like Willy Wonka and the Chocolate Factory, but a lot less glamorous. Really, the main similarity is that not many people go there in person.
GreenSky is one of the most valuable fin-tech companies in the United States at number 3 on the list. The company has been around for the last decade in relative obscurity incubating and is now valued at $3.6 billion. This makes Zalik a billionaire at 43 as the owner of over 50% of the company. The company raised another $3.6 billion last in 2016. With that much money involved, it might be surprising to find out that most of their clients are home remodeling contractors and medical service providers.
GreenSky Credit provides unsecured loans fast through their app or over the phone. While there are a lot of online creditors out there, their services are only for people with excellent FICO scores which also reduces the risk of these unsecured loans. Contractors have access to a lot of homeowners who don’t always have or want to pay all of the money for a job upfront. This makes credit options like theirs beneficial as it gives homeowners time to pay while still receiving the services immediately.
What’s interesting about GreenSky Credit’s business model is that they don’t really carry much risk with their loans. The funding itself comes from a network of lenders around the United States who give a portion of the loan’s balance back to the company. If the loan defaults, they do not receive as much from the bank. They have served more than 1.2 million customers with loans of more than $9 billion in value. It’s a scalable model so only time will tell how far they expand into other industries.