Ever heard of GreenSky LLC? It is one of the most integrated financial technology companies based out of Atlanta, Georgia. Since its establishment in 2006, the Company is successfully dealing with the provision of technology that enables banks and other merchants to lend money to a wide range of consumers effectively. Most of the clients require loans for home improvement purposes, as well as healthcare and solar projects. Over the years, the company strives to set a gap between its services and those of other start-ups in the industry.
In recent news from The Wall Street Journal, GreenSky is considering getting out of its privatization comfort zone and going public. It has filed for a confidential IPO and aims at raising about 1 billion dollars at a valuation of $5 B. By choosing this direction, the Company’s founding partner and CEO David Zalik will be moving against other firms such as Credit Karma, Uber, and Stripe that do not recognize the existence of public offering. Most private enterprises in Silicon Valley believe that enjoying extensive individual operations is the most desirable state for business.
However, GreenSky can back-off from the IPO deal even after signing the papers with the Securities and Exchange Commission. Doing this gives the firm more time to prepare extensively away from the public eye. While Zalik mainly focuses on establishing close working relationships with banks all the years, many start-ups in the nation that have long put off the relevance of banks terming themselves as better options. Zalik’s vast experience working with various banks, coupled up with his excellent leadership skills has significantly helped the lending giant transfer most of its risks to banks; hence its sustainable growth. For instance, it is implausible for the organization to suffer the consequences of defaults.
GreenSky’s dramatically rose in August following news of partnership deal with American Express. This was after the release of its huge earnings earlier in the month. Thankfully, the situation seems to be back on track due to the favorable rating coverage presented.
For GreenSky, it mainly draws its profits by collecting fees following the successful establishment of loans from its businesses.