Real estate development is one of the most cash-intensive businesses around. Major commercial real estate development projects might require hundreds of millions or even billions of dollars in cash infusions years before the first cent is ever made. In this regard, real estate development itself is more akin to venture capital than even other cash-intensive industrial businesses, like petroleum or coal.
But this means that commercial real estate developers, even at the lower end of the spectrum, require a wide range of often-sophisticated financial vehicles that allow them to get their projects done to spec and on time. Among the most important kind of financing available to real estate developers is something known as bridge financing. This is an interim and usually short-term source of financing that allows developers to keep their projects moving forward when other funding sources prove to be insufficient. In essence, bridge financing acts as a sort of credit card for bigtime real estate developers, but with limits in the tens or hundreds of millions of dollars.
Home improvement is just real estate development on a smaller scale
But prior to 2006, there was essentially no equivalent of bridge financing for retail customers that wanted to carry out home improvement projects. Unfortunately, homeowners looking to remodel suffer from many of the same problems that large real estate developers have, just on a smaller scale. In particular, the cost of remodeling even a single room in a modern home can easily run into the tens or even hundreds of thousands of dollars. Yet, there was no way for these homeowners, who often had prime credit scores, to borrow the funds they needed on a short-term basis.
GreenSky Credit changed all of that. GreenSky was the first company to offer a true form of bridge financing at the retail level. With GreenSky loans, customers were now able to be instantly approved for loans up to the six figures. And GreenSky gives customers true instant approval, not just preapproval. In many cases, the funds can be wired into the borrowers account by the end of the day.
GreenSky is helping homeowners get projects completed.