GreenSky launches new loan product for elective healthcare

[ad_1]

GreenSky, which partners with doctors, dentists and other health care providers to provide financing to consumers, added a new way to pay for regular borrowers.

Atlanta-based fintech on Tuesday announced the launch of a revolving line of credit of up to $ 25,000. GreenSky previously only offered installment loans; the new product is designed to be better suited to elective healthcare providers who rely heavily on customer loyalty.

For example, dog owners who frequently take their pets to the same vet would only need to apply for credit once.

GreenSky, which went public last year, derives the lion’s share of its revenue from loans made in partnership with home improvement merchants. But the division of the business that focuses on financing healthcare procedures has grown at a rapid pace.

GreenSky had 2,384 partnerships with elective healthcare providers in the third quarter of last year, down from just 155 in the first quarter of 2017, according to a recent presentation.

“Our growth trajectory in elective healthcare transaction volume continued to mirror what we saw early in our home improvement business,” CEO and Founder David Zalik said during the third earnings call. the company’s quarter in November.

In an interview on Tuesday, another GreenSky executive said over time, he expects revolving lines of credit to become a larger part of the company’s healthcare business than installment loans. .

“We’re going to evolve dramatically throughout 2019,” said Dennis Kelly, president of GreenSky Patient Solutions.

Healthcare providers who use GreenSky’s revolving line of credit can customize the terms they offer their customers, Kelly said.

One of their options is deferred interest, in which borrowers owe no interest as long as they repay the principal balance before the end of the promotional period. In other situations, customers may be charged annual percentage rates of up to 29.99%.

GreenSky is not a direct lender but rather a facilitator of loans granted through its banking partners. It plans to transfer the credit risk associated with the new financing product to the banks, which allows it to operate its installment lending business. The company’s banking partners include Regions Financial, Fifth Third Bancorp, BMO Harris Bank, Synovus Financial and Flagstar Bank.

GreenSky share price plunged 37% in a single day in November after the company sharply cut its 2018 profit estimate. The share price has since rebounded 18%.

[ad_2]

About Frank Torres

Check Also

StockNews.com starts covering Salisbury Bancorp (NASDAQ:SAL)

Equity research analysts at StockNews.com began to cover the shares of Salisbury Bancorp (NASDAQ: SAL …

Leave a Reply

Your email address will not be published.