In a world where dazzling high-tech solutions to everyday problems newly occur by the dozens each day, it is somewhat surprising to see a situation where massive value was simply never noticed by anyone for decades. Yet, this is exactly the situation that led to the incredible rise of GreenSky Credit.
The company was founded in 2006 by entrepreneur David Zalik. Zalik had been working for a few years with some of the top home improvement businesses and contractors in the country. But he had noticed that all of these businesses had a serious leak in their models. Customers looking to do home renovations rarely had any kind of real-world contracting experience. Many of these customers ended up being terribly far off on their estimates of what their desired home improvement projects would cost.
It takes a village to raise a stainless-steel kitchen
People who aren’t involved in construction for a living are often shocked by the true scope and cost of home remodeling projects. Customers looking to redo their kitchen may simply add up the cost of the appliances, throw in a few extra thousand on top of that and assume that they are close to the actual price. In fact, when walls need to be knocked out, the insulation costs on a new kitchen alone can run into the thousands. This doesn’t even touch on the village-worth of electricians, plumbers, carpenters and inspectors that will need to spend hundreds of collective hours on the project. When all is said and done, a high-end kitchen remodel that a layperson may have thought would cost $25,000 can easily cost six times that.
GreenSky Credit saw that these types of canyon-like gaps between the estimated cost and the true cost were causing customers to walk away from deals. And this was costing the home improvement sector billions each year.
GreenSky devised an online lending platform that extends instant point-of-sale loans to these customers. With GreenSky, customers that simply don’t have the liquidity to complete their renovation projects are now able to do so with instant loans that can be seamlessly delivered at checkout or at the point of signing a deal with the general contractor.