FlexShopper, Inc. Raises $20 Million of Equity

BOCA RATON, Fla., June 13, 2016

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. 

FlexShopper CEO, Brad Bernstein, stated, "This equity financing bolsters the strength of our balance sheet and ensures that we are well positioned to execute our core mission of enabling lease-to-own consumers to shop online for what they want, where they want, while also providing retailers and e-retailers with multiple digital channels to increase their sales with lease-to-own consumers. We look forward to expanding our offerings to this market, which is a market we estimate to be in excess of $20 billion."

Mr. Bernstein added, "We are also proud to have been recently named by Internet Retailer as the fastest growing consumer electronics e-retailer in the United States for 2015. This is a testament to the exceptional efforts of our employees across all departments. As we continue to penetrate and expand the online lease-to-own market, we will continue to invest in our risk and technology functions for continued optimization of our order processing, marketing and risk strategies to enhance profitability."

FlexShopper offers consumers three distinct ways of obtaining brand name 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; and 3) Consumers can use FlexShopper's automated kiosk in certain retail locations. Regardless of channel, qualifying 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.

FlexShopper raised $20 million in gross proceeds through the sale of $20 million of Series 2 Convertible Preferred Stock, which are convertible at a conversion price of $0.81 for a total of approximately 24.7 million shares of common stock. 

For additional details regarding equity financing, please see the current report on Form 8-K filed by the Company with the Securities and Exchange Commission on June 13, 2016 which may be found at https://www.sec.gov/Archives/edgar/data/1397047/000121390016014168/f8k061016_flexshopperinc.htm .