FlexShopper, Inc. Secures Debt Facility Of Up To $100.0 Million And Raises $9.35 Million Of Equity

BOCA RATON, Fla., March 12, 2015 /PRNewswire/ -- FlexShopper, Inc. (OTCQB Symbol: FPAY, "FlexShopper"), an online provider of lease-to-own ("LTO") financing and payment solutions for consumers, announced today it has entered into a credit agreement, with a term of two years, providing for up to $100 million of debt financing, a portion of which is uncommitted, from funds managed by Waterfall Asset Management, LLC, a New York-based credit adviser ("Waterfall").  In addition, FlexShopper raised $9.35 million in equity capital from Waterfall, Middlemarch Partners, LLC and other strategic investors.

The financing will enable FlexShopper to accelerate its growth in originating consumer leases through its LTO ecommerce marketplace (www.FlexShopper.com ) and patent pending LTO payment method. 

Brad Bernstein, CEO, stated, "This debt and equity financing increases our balance sheet strength and ensures that we are well positioned to execute our strategies of enabling lease-to-own consumers to shop online for what they want, where they want, and 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. We believe consumers that don't have sufficient credit or cash should have the same online choices and opportunities as everyone else. We look forward to expanding our offerings to this market which we estimate is in excess of $20 billion."

FlexShopper offers consumers three distinct ways of obtaining brand name durable goods on an LTO basis: 1) At FlexShopper's LTO e-commerce marketplace, www.flexshopper.com, consumers can choose from over 80,000 different items including electronics, white goods, furniture, musical instruments, and equipment. 2) On third-party e-commerce sites featuring FlexShopper's LTO payment method, consumers can activate FlexShopper's payment button at checkout. 3)  Consumers can use FlexShopper's automated kiosk in certain retail locations. Regardless of channel, consumers can be approved in minutes for spending limits and may own their items after making 52 weekly payments or by exercising an early payment option which saves them money.

Brad Bernstein, CEO added, "We are very proud of our digital channels, i.e. our marketplace and online payment method, because these channels allow consumers without sufficient cash or credit to get what they want online like everyone else. In addition, retailers' and e-tailers' adoption of these methods, increase their sales. It's a win-win for everybody."

"As an investment adviser focused on alternative financing solutions, we think FlexShopper has very quickly demonstrated a real understanding of what consumers and retailers need in terms of a lease to own finance solution," said Phil Gitler, Managing Director at Waterfall Asset Management.  "We believe our partnership with FlexShopper will enable the Company to scale its operation rapidly, and we expect retailers to benefit from having alternatives to traditional credit to offer their customers."

In connection with entering into the Credit Agreement, FlexShopper raised $9.35 million in gross proceeds through direct sales of 17.0 million shares of FlexShopper common stock to certain affiliates of the Lender and other accredited investors for a purchase price of $0.55 per share. 

For additional details regarding the Credit Agreement and equity financing, please see the current report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 12, 2015 which may be found at http://www.sec.gov/Archives/edgar/data/1397047/000101376215000204/f8k030615_flexshopper.htm . 

Middlemarch Partners, a merchant bank focusing on the financial services industry, served as the exclusive advisor to FlexShopper.  K&L Gates LLP and Mayer Brown LLP provided legal counsel to the FlexShopper and Waterfall Asset Management, respectively.

About FlexShopper

FlexShopper, LLC, a wholly owned subsidiary of FlexShopper, Inc. (FPAY) is a financial and technology company that provides brand name durable goods to consumers on a lease-to-own (LTO) basis through its ecommerce marketplace (www.FlexShopper.com ) and patent pending LTO payment method. FlexShopper also provides LTO technology platforms to retailers and e-tailers to enter into transactions with consumers that want to obtain durable goods, but do not have sufficient cash or credit. FlexShopper also funds the LTO transactions by paying merchants for the goods and collecting from consumers under an LTO contract.

About Waterfall Asset Management Waterfall Asset Management, LLC is an SEC-registered specialist credit adviser focused on High Yield Asset Backed Security (ABS) and loan investments. The firm sources, analyzes, and purchases ABS and loan investments across multiple sectors globally. As of December 31, 2014, Waterfall had approximately $4.3 billion in assets under management.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports of Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact: 
FlexShopper, Inc.
Brad Bernstein, CPA
CEO & President
561-367-1504
[email protected]

SOURCE FlexShopper, Inc.

Related Links

http://www.flexshopper.com