GreenSky CEO David Zalik makes novel business model work

Business, Businessman, CEO, Company, Entrepreneur, Founder, Home Repair, Investment, Investor, Technology

When entrepreneur David Zalik went on a roadshow back in 2005 to pitch his idea for a fintech company that would extend instant point-of-sale retail loans, he knew that he had stumbled across a gold mine. But the 32-year-old veteran of the business world had a tough row to hoe when trying to convince banks to loan him the capital that he needed to get his new business off the ground.

Zalik visited dozens of banks in the fall of that year, only to be rebuffed by skeptical looks and promises by bankers to talk to their bosses, meetings that somehow never seemed to materialize. Eventually, Zalik came to terms with the fact that it wasn’t so much the concept behind his new company, which would become known as GreenSky Credit. Instead, it was the revenue model that had bankers spooked. Quite simply, it was a business model that had no historic analogue.

All sides gladly pay when everyone wins

But Zalik would end up being proven right. After being rejected by so many banks, the determined businessman decided to liquidate his entire real estate portfolio and finance the company himself. This would turn out to be a good bet. But even Zalik had doubts in the beginning about whether he could really make the GreenSky revenue model work.

GreenSky would ultimately end up making money from all three of the parties to the transaction although it wouldn’t be advertised that the borrowers themselves are actually paying for some of it. The contractors and retailers who pitch GreenSky loans and with whom the GreenSky borrowers are actually purchasing goods and services pay the highest fee, 6 percent of the principal amount. But these entities are more than happy to pay that fee because the loans are going towards business that they almost certainly would never have otherwise had.

And the fact is that the 6 percent fee that the retailer pays is effectively rolled into the loan itself, meaning that it is really the customer who ends up paying it. But the customers or borrowers couldn’t be happier. That’s because they’re getting to complete projects that otherwise would have fallen through. And the banks themselves pay a 1 percent carrying fee on all loan balances originated by GreenSky.

http://greenskycredit.atsondemand.com/

Aloha Construction, Inc. Receives Well Deserved BBB Torch Award

Architect, Architecture, Business, Business Expert, Home Repair

Lake Zurich’s Aloha Construction has received the Better Business Bureau’s prestigious Torch Award for Marketplace Ethics. This incredible honor is presented to companies that demonstrate high ethical practices and social responsibility within their communities. This company has been proudly serving the Lake Zurich and surrounding areas roofing and siding needs for the last decade. The award highlights the ongoing commitment of the company to bettering the community in which they serve.

Since 2008, Aloha Construction has provided excellent service to their customers. The company offers free annual roof inspections and will walk customers through the financial side of the process as well. A quick search of the company reveals many satisfied customers who report quality and efficient work. They continually show their commitment to their customers and willingness to stand by their work by offering their 10-Year Craftsmanship Warranty.

Lead by CEO Dave Farbaky, Aloha Construction strives to give its employees complete training and permanent positions within the company. Workers report an atmosphere of respect for both management and the crew. The company also offers rewards for high performing employees, such as the annual week long all expenses paid resort trip to Maui, Hawaii.

Over the last decade, Aloha Construction has become a charitable pillar within the local community. The company continues to give back to the community by sponsoring many various sports teams over the years while also partnering with charitable organizations. Recently the company partnered with OMNI Youth Services to send a twelve year old boy with congestive heart failure and eleven of his friends to a Chicago Bulls game. The company also continues to be involved with local food drives and churches.

Aloha Construction continues to be a valuable asset in their community by providing exceptional service to their customers, a superior work environment for their employees, and invaluable support to local sports teams and charities.

https://patch.com/illinois/lakezurich/directory/listing/34245/aloha-construction