Middlemarch Partners announces its role as the sole advisor and a strategic investor in the completion of an up to $100 million debt facility and a $9.35 million equity raise for FlexShopper, Inc. (OTCQB Symbol: FPAY), an online provider of lease to own (“LTO”) financing and payment solutions for consumers.
The debt financing was secured from funds managed by Waterfall Asset Management, a New York-based credit adviser, and the equity capital from funds managed by Waterfall, Middlemarch Partners, and other strategic investors.
The financing will enable FlexShopper to accelerate its growth in originating consumer leases through its LTO ecommerce marketplace 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 etailers with multiple digital channels to increase their sales with LTO consumers.”
FlexShopper addresses the needs of non-prime consumers. Bernstein added, “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 thirdparty e-commerce sites featuring FlexShopper’s LTO payment method, consumers can activate FlexShopper’s payment button at checkout. 3) In certain retail locations, consumers can use FlexShopper’s automated kiosk to make LTO transactions. Regardless of which channel is selected, 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.
“As a firm that focuses on the specialty finance industry, Middlemarch has supported the growth of many alternative financing companies over the last few years,” said Sasha Grutman of Middlemarch Partners. “We believe FlexShopper is addressing an unmet need for retailers who wish to support America’s non-prime consumers. Flexshopper is quickly establishing itself as an ally of both retailers and consumers, and we expect it to grow rapidly over the next few years.”
Demetris Papademetriou of Middlemarch Partners added, “We are particularly pleased to have secured capital for FlexShopper from Waterfall Asset Management which has a demonstrated track record of helping build leading companies across the specialty finance industry. As merchant bankers, we have elected to invest alongside Waterfall and other strategic investors in this transaction.”
Securities offered through Broadmark Capital, LLC, Member FINRA, SIPC.
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 MIDDLEMARCH PARTNERS
Middlemarch Partners is a merchant bank that works with companies looking for wellstructured and thoughtful solutions to their capital raising, M&A, and strategic partnering needs. Middlemarch is particularly active within the specialty finance, payments, and financial technology sectors where companies require sophisticated equity and debt investment solutions. The firm is capable of supporting venture and growth capital transactions ranging from $15 to $250 million in either debt or equity.