FlexShopper, Inc. (FPAY): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how FlexShopper, Inc. (FPAY), is reshaping the e-commerce landscape by providing lease-to-own options? Founded in 2013, this financial technology company is making waves by offering underserved consumers a chance to acquire durable goods. With a 130% year-over-year increase in new customer application volume in January 2025, and total originations up 44%, what's driving this impressive growth?

Dive in to discover FlexShopper's journey, from its inception to its current standing as a key player in the financial technology sector, boasting a $2.1 million retail product margin on their flexshopper.com marketplace in Q4 2024, a 143% increase. Explore who owns FlexShopper, what its mission is, how its business model works, and how it generates revenue, providing flexible payment solutions to a wide range of consumers.

FlexShopper, Inc. (FPAY) History

FlexShopper's Founding Timeline

Year established

FlexShopper was established in 2014.

Original location

The company is headquartered in Boca Raton, Florida.

Founding team members

While specific founding team members are not explicitly detailed in the provided search results, FlexShopper was created with a vision for providing consumers with a flexible way to purchase durable goods through lease-to-own options.

Initial capital/funding

Information regarding the initial capital or funding for FlexShopper's establishment is not available in the provided search results.

FlexShopper's Evolution Milestones

FlexShopper's Transformative Moments

• Going Public Via SPAC: The merger with Revolution Acquisition Corp. and subsequent listing on the NASDAQ Capital Market in 2015 marked a pivotal moment, providing FlexShopper with increased access to capital markets.
• Focus on E-commerce: Recognizing the shift in consumer behavior, FlexShopper strategically focused on enhancing its e-commerce platform. This transformation allowed the company to tap into a broader market and cater to the evolving needs of online shoppers.
• Partnerships: Strategic alliances, such as the partnership with Acima Credit, have played a crucial role in expanding FlexShopper's reach and service capabilities.
• Strategic Technology Investments: Investments in technology have enabled FlexShopper to streamline operations, improve customer service, and leverage data analytics for better decision-making.

To gain more insights into the company's mission, vision, and core values, consider exploring: Mission Statement, Vision, & Core Values of FlexShopper, Inc. (FPAY).

FlexShopper, Inc. (FPAY) Ownership Structure

FlexShopper, Inc. features a mix of institutional, retail, and insider ownership, influencing its corporate governance and strategic direction.

FlexShopper, Inc.’s Current Status

FlexShopper, Inc. is a publicly traded company, listed on the Nasdaq Capital Market under the ticker symbol FPAY. This status enables the company to raise capital through the issuance of stock and requires it to adhere to Securities and Exchange Commission (SEC) regulations, including regular financial reporting and disclosures.

FlexShopper, Inc.’s Ownership Breakdown

As a publicly traded company, FlexShopper's ownership is distributed among various types of shareholders. While precise, up-to-the-minute ownership percentages fluctuate, the following table provides an overview of the general ownership structure based on the most recently available data.

FlexShopper, Inc.’s Leadership

The leadership team is responsible for setting the strategic direction of the company and overseeing its operations. Key members of the leadership team as of April 2025 include:

• Russell Heiser serves as the Chief Executive Officer.
• Elias Shedlin holds the position of Chief Financial Officer.

Understanding the ownership structure and leadership provides valuable insights into the governance and strategic direction of FlexShopper. For more in-depth information about FlexShopper's investors, you might find this resource helpful: Exploring FlexShopper, Inc. (FPAY) Investor Profile: Who’s Buying and Why?

FlexShopper, Inc. (FPAY) Mission and Values

FlexShopper's mission is centered around providing consumers with a flexible and accessible way to obtain durable goods through lease-to-own options. The company aims to serve a market segment that may not have access to traditional financing, offering them a path to acquire essential items while building or rebuilding their credit.

FlexShopper's Core Purpose

Official mission statement

FlexShopper's official mission statement is: 'To provide underserved consumers with a transparent, flexible and stress-free way to lease durable goods with a path to ownership.'

• Transparency: Ensuring customers understand the terms and conditions of their lease agreements.
• Flexibility: Offering various payment options and lease durations to accommodate different financial situations.
• Stress-Free Experience: Streamlining the application and approval process to make it as easy as possible for customers to acquire needed goods.
• Path to Ownership: Providing a clear route for customers to eventually own the leased items.

Vision statement

FlexShopper's vision statement is not explicitly provided as a single, defined statement. However, their actions and goals suggest a vision focused on:

• Expanding access to durable goods for underserved populations.
• Becoming a leading provider in the lease-to-own industry through innovation and customer satisfaction.
• Empowering customers to improve their financial well-being through responsible leasing options.

Company slogan/tagline

FlexShopper's tagline is: 'Your Flexible Path to Ownership.'

• This tagline encapsulates the core value proposition of the company, emphasizing the flexible nature of their lease agreements and the opportunity for customers to eventually own the products they lease.
• The slogan highlights the company's commitment to providing a service that adapts to the needs of its customers, offering them a practical way to obtain durable goods.

For more in-depth information, you can visit: Mission Statement, Vision, & Core Values of FlexShopper, Inc. (FPAY).

FlexShopper, Inc. (FPAY) How It Works

FlexShopper, Inc. provides a lease-to-own (LTO) option for durable goods through its e-commerce marketplace. Customers can acquire electronics, furniture, and other items by making affordable weekly payments, with the option to purchase the items outright.

FlexShopper, Inc.'s Product/Service Portfolio

FlexShopper, Inc.'s Operational Framework

FlexShopper operates through a direct-to-consumer online platform. Here's a breakdown of their operational framework:

• E-commerce Platform: FlexShopper.com serves as the primary interface for customers to browse and select products.
• Lease Application: Customers complete an online application, providing necessary personal and financial information.
• Approval Process: FlexShopper uses proprietary scoring models to assess the applicant's creditworthiness and determine lease eligibility.
• Lease Agreement: Upon approval, customers enter into a lease agreement with clearly defined terms, including weekly payments and purchase options.
• Order Fulfillment: FlexShopper fulfills orders through its network of suppliers and logistics partners, ensuring timely delivery to customers.
• Payment Processing: Weekly payments are automatically processed via electronic funds transfer (EFT) or other approved methods.
• Customer Service: FlexShopper provides customer support through various channels, addressing inquiries and resolving issues related to orders, payments, or lease agreements.

To gain more insights into the company's financial stability, consider exploring: Breaking Down FlexShopper, Inc. (FPAY) Financial Health: Key Insights for Investors

FlexShopper, Inc.'s Strategic Advantages

• Proprietary Scoring Model: FlexShopper's in-house scoring model enables them to assess risk and approve a broader range of customers compared to traditional lenders.
• E-commerce Platform: Their online platform provides convenience and accessibility, attracting customers seeking a hassle-free shopping experience.
• Flexible Payment Options: Weekly payment plans cater to budget-conscious consumers, making durable goods more affordable.
• Lease-to-Own Model: The LTO model offers an alternative to traditional credit, appealing to individuals with limited or impaired credit histories.
• Product Variety: A wide selection of electronics, furniture, and appliances attracts a diverse customer base.

FlexShopper, Inc. (FPAY) How It Makes Money

FlexShopper, Inc. generates revenue primarily through its e-commerce marketplace, offering durable goods to consumers via lease-to-own (LTO) agreements.

FlexShopper, Inc.'s Revenue Breakdown

As of the fiscal year 2024, the company's revenue streams can be broken down as follows:

FlexShopper, Inc.'s Business Economics

FlexShopper's business economics are driven by several key factors:

• Lease-to-Own (LTO) Pricing: The company sets lease prices to cover the cost of goods, financing expenses, and a profit margin. LTO agreements typically involve higher total payments compared to traditional retail sales due to the added cost of financing and risk.
• Target Market: FlexShopper focuses on serving consumers who may not qualify for traditional credit, providing them access to durable goods through flexible payment options.
• Risk Management: A critical aspect of their business model involves assessing and managing the risk associated with LTO agreements, including potential defaults and product returns.
• Operational Efficiency: Managing inventory, logistics, and customer service efficiently is crucial for maintaining profitability.

FlexShopper, Inc.'s Financial Performance

Key aspects of FlexShopper's financial performance include:

• Revenue Growth: Monitoring the growth in lease revenues and retail sales is essential to gauge the company's market penetration and acceptance of its LTO model. For instance, FlexShopper reported total revenues of $131.2 million for the year ended December 31, 2023, reflecting a decrease of 12.7% compared to $150.3 million for the year ended December 31, 2022.
• Gross Profit Margin: Analyzing the gross profit margin helps assess the profitability of the company's leasing and sales operations. The gross profit for the year ended December 31, 2023, was $44.9 million, a decrease of $9.4 million, or 17.3%, compared to $54.3 million for the year ended December 31, 2022.
• Operating Expenses: Keeping track of operating expenses, including sales, marketing, and administrative costs, is vital for understanding the company's overall efficiency. Operating expenses decreased by $7.3 million to $53.1 million for the year ended December 31, 2023, from $60.4 million for the year ended December 31, 2022.
• Net Income/Loss: The bottom line indicates the company's overall profitability. FlexShopper reported a net loss of $12.3 million for the year ended December 31, 2023, compared to a net loss of $7.3 million for the year ended December 31, 2022.
• Key Metrics: Investors and analysts monitor metrics such as lease origination volume, default rates, and customer retention to evaluate the health and sustainability of the business model.

To gain further insights into the company's values, explore the Mission Statement, Vision, & Core Values of FlexShopper, Inc. (FPAY).

FlexShopper, Inc. (FPAY) Market Position & Future Outlook

FlexShopper, Inc. operates within the burgeoning 'buy now, pay later' (BNPL) market, tailoring its services to consumers seeking durable goods with flexible payment options. As of April 2025, FlexShopper is strategically positioned to leverage its e-commerce platform and financial solutions to expand its market presence, targeting underserved segments and capitalizing on the increasing demand for accessible financing.

Competitive Landscape

Opportunities & Challenges

Industry Position

FlexShopper occupies a specific niche within the competitive financial technology landscape, primarily focusing on durable goods leasing through its e-commerce platform. The company differentiates itself by:

• Offering flexible payment options tailored to consumers with limited access to traditional credit.
• Maintaining a diverse product catalog, including electronics, furniture, and appliances.
• Focusing on direct-to-consumer online sales, providing a convenient shopping experience.

The company's success hinges on effectively managing credit risk, scaling its operations efficiently, and adapting to the evolving regulatory environment governing the BNPL sector. For more insights into FlexShopper, explore: Exploring FlexShopper, Inc. (FPAY) Investor Profile: Who’s Buying and Why?