Canadian fintech startup Flexiti Financial Inc has agreed to establish a new credit facility with Liquid Capital Corp. The deal will give the company access to an initial $25 million in senior debt. Founded in 2013, Toronto-based Flexiti is a provider of point-of-sale consumer financing in Canada. It said the new capital, along with its receivables warehousing facility, will help the company grow across market segments, and expand into other products and services. Flexiti also said it is planning for an equity financing round in the near future. Liquid Capital is a provider of working capital, asset-based lending and trade finance solutions.
Flexiti Financial (formerly Wellspring Financial) and Liquid Capital Announce Credit Facility to Support Growth of its Consumer Finance Business in Canada
TORONTO, March 15, 2016 /CNW/ – Flexiti Financial (“Flexiti”), a Canadian fintech company offering point -of-sale consumer financing, is pleased to announce that it has entered into an agreement with Liquid Capital Corporation (“Liquid Capital”), a company specializing in providing working capital, asset based lending and trade finance solutions. Under the agreement, Liquid Capital will provide the senior debt for a new credit facility, initially in an amount of up to $25 million, for consumer receivables generated by Flexiti Financial. The facility will be used to finance the warehousing of receivables originated by Flexiti pending their securitization.
Launched in 2014, Flexiti Financial provides retailers, home improvement contractors and healthcare practitioners the ability to offer their customers the option to pay for big-ticket purchases of goods or services either in equal payments or at a later date, making those purchases more affordable to the consumer. Flexiti has built an award-winning technology platform, providing customers with a virtual credit card in minutes, and making the application and approval process quick and easy. Having completed an equity financing of over $5 million in 2014 and a further $4MM in subordinate debt financings in 2015, Flexiti has just secured an additional $2MM in operating capital and will shortly be undertaking an equity raise to support its growing consumer finance business. This new capital, along with its receivables warehousing facility, will position Flexiti to fund its continuing growth across all market segments, as well as a planned expansion into other products and services.
“We are pleased to have formed a funding partnership with Flexiti Financial,” said Sol Roter, President and co-founder of Liquid Capital. “Flexiti’s award-winning technology platform and merchant partnerships have tremendous potential for the origination of quality financial assets. This transaction represents an important addition to the Liquid Capital portfolio and provides an outstanding opportunity to showcase Liquid Capital’s increasing commitment to the asset based lending space.”
Liquid Capital entered into a joint venture with Next Edge Capital Corp. (“Next Edge”) in 2015 to co-fund investments in accounts receivable, trade finance, and Asset Based Lending transactions sourced by and through Liquid Capital’s Principal distribution channel and financed by the Next Edge Private Debt Fund (the “Next Edge Fund”). The Next Edge Fund has now grown to approximately $40MM and will continue to grow as Liquid Capital continues to source quality transactions through its network of originators in Canada and the United States.
“Flexiti Financial is very pleased to announce the establishment of this new credit facility,” said Peter Kalen, Founder and CEO of Flexiti Financial. “We have been looking for a funding partner with access to capital on flexible terms to support our business growth and allow us to build our on-balance sheet asset pool for ultimate securitization purposes. Liquid Capital, through its partnership with Next Edge, provides the strength and the vision we are looking for to move the business to the next level. With this new funding partnership in place, we are confident that our 100% paperless and instant credit card solution can continue to expand quickly in Canada, allowing our nearly 1,000 merchant partners the ability to grow their sales by making large purchases more affordable for their customers.”
INFOR Financial Inc. acted as the financial advisor to Flexiti Financial for this transaction and Raymond James Ltd. acted as the financial advisor to both Liquid Capital and Next Edge.
Flexiti Financial is currently available in British Columbia, Alberta and Ontario, New Brunswick, Newfoundland and Nova Scotia. If you are interested in offering Flexiti financing to your customers, please contact us at email@example.com or call us at 1-855-559-0909.
About Flexiti Financial:
Flexiti Financial, formerly Wellspring Financial, is a Canadian fintech company in the POS consumer lending space, led by an experienced team of executives with extensive knowledge of the retail credit space in Canada, leveraging mobile technology to deliver the fastest application process available in the market. It is the only fintech in the consumer lending space competing directly against large financial institutions by offering a retail private label credit card solution. The technology platform was recognized as market leading, winning ACT (Advanced Card Technologies) Canada’s 2015 Technology Innovation Award for Payments Benefiting Consumers and the 2015 Silver Technology Innovation Award for Canadian Payments Benefiting Merchants.
For more information, visit www.flexitifinancial.com.
About Liquid Capital:
Since 1999, Liquid Capital Corporation has been operating in the factoring and trade finance business. Over that period of time, the company has processed well over $2 billion in accounts receivables and trade finance transactions through both its Canadian headquarters in Toronto and US headquarters in Dallas. The company also has a master franchise relationship in Mexico. Through its 80+ franchised office network, the company locally originates, manages, and funds accounts receivables, asset based lending and trade finance transactions. Further information can be found at www.liquidcapitalcorp.com.
About Next Edge Capital:
Next Edge was formed through a management spin out of the Canadian office of Man Investments Canada Corp. in 2014. The management team opened the Canadian office of Man Group plc. (“Man”) in 2006 and has raised over CDN $1.0 billion since inception.
Next Edge searches the world for investment managers and strategies that aim to deliver robust risk-adjusted performance. The people and approaches we discover may not be well known in Canada, but we think they provide something remarkable – access to what’s next. The yields available today from traditional fixed income investments are at all-time lows. One area where there are still opportunities for significant yield generation with security is Private Debt. Next Edge’s first two offerings in this space – the Next Edge Private Debt Fund and the VPC Specialty Lending Trust seek to capitalize on this opportunity. Our clients appreciate seeing compelling new approaches, even though some are complex or are limited in capacity. For more than a decade, the Next Edge management team has provided access to unique strategies before they have become widely known. Further information can be found at www.nextedgecapital.com.
For further information: Flexiti Financial: Peter Kalen, Chief Executive Officer, firstname.lastname@example.org, (416) 583-1861; Liquid Capital: Sol Roter, Liquid Capital Corporation, email@example.com, (416) 222-5599 ext. 8185
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