FlexShopper, Inc. is a Boca Raton, Florida-based fintech company founded in 2006 that provides lease-to-own solutions for consumer durable goods, operating an e-commerce marketplace (FlexShopper.com) and automated leasing platform partnering with retailers to offer consumer electronics, appliances, and furniture on lease-purchase terms. The publicly-traded company (NASDAQ: FPAY) filed for Chapter 11 protection on December 22, 2025 in Delaware (Case No. 25-12254) after discovering significant internal fraud involving the manufacturing and sharing of fraudulent loan documents that inflated the company's borrowing base, resulting in estimated overborrowing of over $140 million under its $200 million Warehouse Credit Facility. The Warehouse Facility lenders (with Powerscourt Investments 50, LP as agent) issued a notice of default in August 2025 and accelerated approximately $162 million in outstanding debt in September 2025, holding an additional $166 million unsecured validity guaranty claim. A Chief Restructuring Officer was appointed to oversee the case. The Debtors obtained an $8 million DIP facility at 15% interest from ReadySett LLC (a Snap Finance affiliate), which also serves as stalking horse bidder at $8 million plus a $7.5 million payment to warehouse lenders. An auction is scheduled for February 9, 2026 with a sale hearing on February 11, 2026. The case remains pending.
