GreenSky Credit continues to expand rapidly amid soaring business. The company now offers its loan products through more than 17,000 retailers across the country. And there have been rumors flying that the company may be looking to complete an IPO sometime in the near future. While some analysts have estimated the current value of the company to be around $5 billion, others have speculated that an IPO could ultimately see GreenSky end up with a market capitalization of more than $10 billion. And all this is the product of a company that was founded just 13 years ago.
A simple but brilliant idea
GreenSky was founded by David Zalik, a lifetime entrepreneur and former child prodigy who had been in business for himself since the age of 14. The idea for GreenSky came to Zalik when he was working with a number of large home improvement retailers and contractors as part of his online consulting business. What Zalik quickly realized was that these companies were losing billions of dollars each year in potential sales due to the fact that retail customers simply didn’t have any means of attaining instant bridge financing.
But Zalik had also been involved in the commercial real estate business for decades. He knew that one of the main ways that most commercial real estate development projects get done is through the developers’ access to frictionless and fast bridge financing. Without it, there would be few commercial real estate projects in the United States that could even get off the ground. Zalik wondered why the same sorts of instant credit facilities couldn’t be made available to retail customers. He quickly determined that the answer was that there was no good answer at all why they couldn’t.
In 2006, Zalik was able to build a high-tech interface that retailers and contractors could access in order to help customers instantly apply for loans for up to six-figure amounts. At the same time, he was able to partner with some of the largest lenders in the country. The result has been a company that now does more than $5 billion in new loans per year, helping customers get their home remodeling projects done.
David Rubenstein sits down with Richard Liu Qiangdong to talk about Jingdong Mall and JD.com. Richard Liu has headed up the booming e-commerce company since it began in 2004. He was also responsible for the foundation of Jingdong Mall in 1998. This business is important because it was the foundation for JD.com. Before Richard Liu Qiangdong was able to talk about these businesses, David Rubenstein wanted to discuss some of his past business ventures.
Richard Liu talks about his attempt to break into the restaurant business. This was a chance for him to truly learn how valuable time is when it comes to growing the business. Unfortunately, when he was trying to grow his restaurant business he was also a business student in college. He did not have the time available to them to fully dedicate himself to that business. Liu believes that this was a contributing factor to its failure.
When he opened Jingdong Mall he approached that business completely different. He committed himself to it 100%. Immediately, Liu Qiangdong saw the results of such dedication. Instead of failure, the visits began to boom. The only negative effects that Richard Liu Qiangdong saw in this business was when SARS started to sweep through China. People became fearful of venturing into public locations. Richard Liu immediately began to think of ways to salvage his business. One of the new ways to do this would be to break into online retail. Visit This Page for related information.
2004 was a big year for Richard Liu. JD.com started selling merchandise to their first customers that year and gained a lot of support throughout China. The reason for this was because Richard Liu Qiangdong believed that if he got into the e-commerce business he did not want to conduct it like other businessmen. He had seen a lot of businesses on the Internet advertising products that were counterfeit and lackluster. He found it to be a very poor way to conduct business. Richard Liu Quiangdong did not want to be a part of that. This was when JD.com service really took off with the public. When customers realize that his company upheld their promises they were hooked.
More about Quiangdong on https://www.crunchbase.com/person/qiangdong-liu