An Overview of GreenSky Credit Services

Fintech company GreenSky has quickly become one of the most successful in its industry. The company recently raised $50 million at a $3.6 billion dollar valuation, and it’s business model allows it to make money without taking on a lot of risk. It is also one that can be scaled in the future as the company moves from focusing on home renovations to other industries.

How GreenSky Works

The contractors that are affiliated with GreenSky are the ones that do most of the marketing to consumers. After a loan is made, the company gets 6 percent of the initial balance from the contractor, but the company is not the one that actually makes the loan. Instead, one of its partner lending institutions will provide the loan proceeds to the borrower. The lending partners then pay GreenSky 1 percent of the balance for the right to service that loan.

Who Does the Company Partner With?

For the most part, GreenSky makes loans to homeowners who want to get a new roof, replace their siding or make other general repairs or upgrades. However, the company plans on expanding its offerings to other professionals who want to offer financing to their customers. According to one of the company’s early investors, getting a contractor to use a relatively new financing product can be difficult. However, once the contractor is onboard, he or she usually won’t stop using it unless there is a compelling reason.

Who Is Eligible for a Loan?

For the most part, borrowers have to have a reasonably high credit score and steady source of income to get approved for financing. Unlike other fintech companies, GreenSky doesn’t use social media data or other data to make a lending decision. This is because the loans have to be acceptable to the banks who are ultimately going to fund them.

https://www.nasdaq.com/markets/ipos/company/greensky-inc-1052127-86689?tab=financials

Sahm Adrangi and Kerrisdale Capital Management

St. Joe organization is facing more problems as Sahm Adrangi of Kerrisdale Capital’s report claims. According to the report, the organization has a lot of shortcomings that may force it to sell itself soon. The company will be discussing conference call. Those who will have time and listen to the discussion; they will be able to learn more about the current situation with St. Joe. The biggest shareholder of St. Joe which has almost a third of the shares Fairholme Fund, is facing some challenges too and is likely to withdraw some of its shares from the company.

The Fund has to abide by the new rules set by SEC, and this is going to make things even worse for St. Joe. Fairholme has been making bad decisions in terms of stock choices for the last few years, and this has made its assets to decline to the lowest levels. Because of this, the fund has to withdraw its position from St. Joe by almost half, something that is going to hurt the other shareholders of the company. This indicates that St. Joe will be treading on shaky ground even if all other operations of the company were running smoothly.

That is not all that St. Joe is facing currently. The organization has its valuation exaggerated. The value of the company is up to a figure that nobody can believe. The organization purchased some desolate land near Panama City Beach with plans to transform the areas. These plans were made more than ten years ago, and so far nothing has taken place in the property. As the shareholders watch and wait to see the actions of St. Joe, they are yet to be shocked because it seems like St. Joe will not be able to develop the land as promised even if it takes a lifetime.

Sahm Adrangi is the founder and CIO of Kerrisdale Capital Management LLC. The company was established in 2009 and specializes in long-term value investments. Sahm Adrangi is famous when it comes to investment banking. Sahm Adrangi is also a frequent speaker at several conferences such as the Activist Investor Conference, the Distressed Debt Investing Conference and others.

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