Unlike other similarly-founded companies like Uber, Stripe and Credit Karma, GreenSky Credit, which was founded by David Zalik, is seeking public funding and support much more quickly than other Silicon Valley start-ups. Filing for an IPO that could garner between $1 billion and $5 billion, the company is potentially seeking a route that others have previously put off as long as possible.
GreenSky Credit offers financial assistance for home improvement projects in the form of loans that are actually held by banking partners such as SunTrust and Fifth Third. GreenSky Credits, while at lower risk due to this type of arrangement, still profits due to the banks’ willingness to pay the company for the relationships with clients it can bring to them.
Those looking to apply for a loan with GreenSky Credit can have an answer almost instantly by filling out a form on the company’s mobile app. GreenSky Credit’s system and ease-of-use has been noted by bank founders as being simple and “frictionless.”
The company managed to avoid the need for public funding for nearly a decade due to Zalik’s willingness to use his own Atlanta property as collateral to arrange for his own debt that has since paid off plentifully. In doing so, he managed to maintain nearly all majority ownership of the company, which could potentially change if an IPO is decided on for the company.
GreenSky has also managed to survive recent turmoil for other lending companies relatively untouched. LendingClub, which is another company that offers similar services, has seen falls of 86% since its public debut. Another company, OnDeck, has fallen 82%. This is all due to the fact that LendingClub admits to having given loans to investors that did not match certain criteria they had set in place initially. This took place in 2016 and the companies are still feeling the fallout.
The fate of GreenSky is still unknown should Zalik choose to move forward with an IPO, however there is still a chance he could decide to maintain the privately-funded status of his company for another few years until the need for public funding increases again.