BOCA RATON, Fla., March 5, 2014 /PRNewswire/ -- For Justin Quintana, general manager at Half-Price Mattress in West Palm Beach, Florida, arranging financing for customers with credit problems was an expensive and time-consuming option. It involved faxes and approval delays that put sales at risk—not to mention the finance company's 6% merchant fee.
"All that changed when we partnered with FlexShopper," said Quintana. "Now we can offer a lease-to-own option to almost anyone who walks in. Customers can apply on their smartphone—I've had customers hand me their smartphone with their FlexShopper approval even before I've finished explaining the service. And FlexShopper doesn't charge me anything."
FlexShopper (OTCQB: FPAY), a new financial technology platform for both online and brick-and-mortar retailers, is changing the game for merchants and customers alike. The company is the first major Web-based finance option for Lease-to-Own (LTO). It takes the LTO business out of the hands of traditional rent-to-own stores and puts it onto the Web browsers and mobile devices of consumers. Now shoppers can get the brand-name furniture, appliances, electronics and other goods they want—at the places they love to shop—in minutes, for affordable weekly payments.
"It's estimated that more than 50 million Americans could use a lease-to-own option for the things they want to purchase—yet only five to six million of those consumers are currently served, primarily by two major rent-to-own retail chains," said Brad Bernstein, president and chief financial officer of FlexShopper. "We believe these shoppers—and this source of retail revenue—can be addressed and expanded dramatically through a Web-based service."
LTO for the Digital Era
With its patent pending online LTO technology, FlexShopper gives consumers freedom of choice. The company plans to partner with online and brick-and-mortar retailers of all sizes, which will enable shoppers to take home name-brand products from all their favorite stores. For merchants, FlexShopper will provide powerful new revenue streams for stores by rescuing sales involving customers who otherwise would not be able to buy. Best of all, FlexShopper delivers the entire purchase amount to the merchant—no commission or discount is deducted.
FlexShopper offers its payment method to the market as a service to retailers, e-tailers and the public, and is easily accessible at the point of sale. The company will also debut its technology in the coming weeks as a plug-in for online e-commerce sites as a PayPal-styled alternative for lease-to-own. Finally, it plans to open its own FlexShopper.com website, where thousands of brand-name products will be available for LTO purchase, in early March. FlexShopper welcomes product feeds from major e-tailers and retailers that would like to increase their sales with this demographic.
Easy Customer Terms
FlexShopper completely automates the process of applying for lease-to-own. Consumers can be approved for a personal spending limit within two minutes via smartphone, tablet or Web browser; all that's required is that the customer be at least 18 years old, have a source of income, and an active bank account or prepaid debit card. No credit check is required; moreover, there are no hidden fees or long-term commitments.
Initial FlexShopper lease terms are short-term. Shoppers have the option of buying their merchandise any time during the first 90 days for the original cash price plus $50. Customers can use their FlexShopper pre-set spending limit to purchase more than one item. At the end of the lease term, if the shopper does not wish to purchase the item, they simply return it.
Upsales Often Result
At Half-Price Mattress, Quintana says he has often experienced upsales of 20-30% through FlexShopper because the company can usually approve the customer for more than the original purchase amount. One customer, he pointed out, purchased a $1,700 sectional from the sales floor, all because of FlexShopper.
"If people are 'on the fence' about a purchase, FlexShopper can be the difference that closes the sale," he stated. "It's like adding gasoline to our sales fire."
About FlexShopper (www.FlexShopper.com):
Based in Boca Raton, Florida, FlexShopper, Inc. (OTCQB: FPAY) is transforming the Lease-to-Own (LTO) Industry from a store-front business to an e-Commerce marketplace/digital payment method. With FlexShopper, LTO consumers are no longer restricted to LTO chains with their limited merchandise. Instead, they can get the merchandise they want—furniture, appliances, electronics, musical instruments, sporting goods, jewelry and much more—from participating name-brand stores and online merchants. Approval takes just minutes. In addition to partnerships with merchants, FlexShopper offers its own LTO commerce site at FlexShopper.com.