FlexShopper Inc (FPAY)

History and Background

FlexShopper, Inc. was founded in 2014 and went public via a reverse merger in 2015. It focuses on providing lease-to-own (LTO) options for durable goods through its e-commerce platform. The company has evolved from targeting prime customers to focusing on the underserved non-prime market.

Core Business Areas

• E-Commerce Lease-to-Own: Offers a wide range of durable goods (furniture, electronics, appliances) through a lease-to-own model. Customers make periodic payments over a set term, eventually owning the item.

Leadership and Structure

FlexShopper is led by a board of directors and an executive team. The company operates with a structure typical of small publicly traded companies, focusing on efficient management and growth strategies.

Key Offerings

• Furniture Leasing: Offers lease-to-own options for furniture items. This is a significant revenue driver for FlexShopper. Competitors include Conn's (CONN), Rent-A-Center (RCII), and Aaron's (AAN). Market share data is not publicly available.
• Electronics Leasing: Provides lease-to-own options for consumer electronics. Competitors include Conn's (CONN), Rent-A-Center (RCII), and Aaron's (AAN). Market share data is not publicly available.
• Appliance Leasing: Offers lease-to-own options for appliances. Competitors include Conn's (CONN), Rent-A-Center (RCII), and Aaron's (AAN). Market share data is not publicly available.

Industry Overview

The lease-to-own industry caters to consumers with limited access to traditional credit. It is growing, driven by economic factors and the increasing demand for durable goods. The space is highly regulated.

Positioning

FlexShopper positions itself as an online-first, technology-driven LTO provider, differentiating through its e-commerce platform and target non-prime consumer. The company has a competitive edge through ease of access and a broader array of products than brick and mortar competitors.

Total Addressable Market (TAM)

The total addressable market for lease-to-own is estimated to be $10-12 Billion annually. FlexShopper's position, though niche and digitally focused, targets the non-prime portion of the market and a relatively small market share.

Key Competitors

• CONN
• RCII
• AAN

Competitive Landscape

FlexShopper faces stiff competition from established players like Rent-A-Center and Aaron's. Its online focus differentiates it, but it needs to scale efficiently and manage risk effectively to compete. Conn's also has a significant presence in the space.

Historical Growth: FlexShopper's growth has been linked to its ability to acquire customers and manage credit risk. The historical growth fluctuates with the economic state.

Future Projections: Future growth depends on expansion into new markets, partnerships, and product offerings, but is heavily subject to the state of economy and interest rates.

Recent Initiatives: Recent strategic initiatives may include partnerships with retailers, technological advancements in their e-commerce platform, and attempts to reduce customer acquisition costs.

FlexShopper Inc. is a niche player in the lease-to-own market, focusing on an online e-commerce approach. Its strength lies in its digital platform and focus on the underserved non-prime customer. However, the company faces challenges related to high customer acquisition costs, regulatory risks, and intense competition. Future success will depend on scaling efficiently and managing credit risk effectively given the sensitivity of the consumer segment that it serves.

Data Sources:

• Company filings
• Industry reports
• Financial news sources

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Market share data is based on publicly available information and estimates. Actual results may vary.