Flexshopper, Inc. (OTCQB: FPAY) is a financial and technology company that provides consumers with a flexible and easy way to get furniture, electronics, appliances and other popular brand name goods with affordable weekly payments. The company’s unique personal shopping assistant platform allows consumers to utilize a patent pending lease-to-own (LTO) payment method to purchase a full selection of qualifying merchandise from some of the country’s most respected retail and e-commerce providers.
By leasing items within Flexshopper’s expansive LTO network, consumers can acquire the products they want without the need for a long-term commitment. Under the company’s model, the merchandise can be returned at any time with proper notice without penalty, or shoppers can continue to pay for one year and take ownership of the leased items.
According to a report by the Association of Progressive Rental Organizations, the LTO industry served approximately 4.8 million customers throughout North America in 2012, accounting for annual revenue of approximately $8.5 billion. This industry performance has provided Flexshopper with a formidable platform to realize strong financial growth in recent years. In the first quarter of 2015, the company recorded lease revenues of more than $3.6 million, marking a year-over-year increase of over $3.5 million.
“We are pleased with our lease originations in the first quarter,” Brad Bernstein, chief executive officer of Flexshopper, stated in a news release. “[W]e are excited to increase our lease originations on all of our channels which include in retail stores, online with our patent pending lease-to-own payment method and on our ecommerce marketplace.”
In March, Flexshopper secured a debt facility of up to $100 million and a $9.35 million equity raise from Middleman Partners, providing the company with the capital needed to promote accelerated growth through its LTO ecommerce marketplace and payment method in the coming months.
“This debt and financing increases our balance sheet strength and ensures that we are well positioned to execute our strategies of… positioning ourselves as the only LTO platform that can provide retailers and e-tailers with multiple digital channels to increase their sales with LTO consumers,” continued Bernstein.
With the persistent expansion of the LTO industry in recent years, Flexshopper is in a strong strategic position to continue improving its financial results in the future. For prospective investors, the company’s newly acquired capital could provide the means for accelerated growth and sustainable returns moving forward.
For more information, visit www.flexshopper.com
