GreenSky Credit is first company to deliver true instant bridge financing for retail customers
In the field of commercial real estate development, bridge financing is one of the key credit facilities that keep the industry running. Because real estate is one of the most capital-intensive businesses that there are, it is necessary for projects that are developing multi-million-dollar properties to have access to a wide variety of funding vehicles that are able to keep the cash flowing in the event of temporary funding shortfalls or unanticipated expenses. If all commercial real estate developers needed to rely solely on traditional mortgage financing or their own cash reserves, the entire real estate development industry in the United States would quickly grind to a halt.
Bridge financing for consumers
Yet, in today’s increasingly expensive real estate market, private homes are often million-dollar investments. And private homeowners face many of the same costs as professional real estate developers when it comes time to build a new property, renovate an existing one or to add an addition to their homes.
But these consumers have not traditionally had access to the same kinds of bridge financing as commercial developers. This has meant that, just as the commercial real estate development industry relies on bridge financing to get most deals done, billions of dollars per year in private home renovations that could have been done get shelved.
GreenSky Credit is the first company to address this issue. GreenSky provides a form of instant-approval bridge financing at the retail level for homeowners who are looking to do major renovation projects but who simply lack the cash or alternative financing options to do so. GreenSky is able to extend customers truly instant point-of-sale loans for amounts well into the six figures. And it is able to do so with loans that have some of the best terms imaginable.
A typical GreenSky loan involves no interest and no payments for the first full year. After that, higher rates kick in. But the majority of GreenSky customers never see those higher rates because they pay the loan off, in full, before the teaser rates end.