FlexShopper amends credit agreement to allow interim financing for working capital

Published 20/08/2025, 22:26
FlexShopper amends credit agreement to allow interim financing for working capital

FlexShopper, Inc. (NASDAQ:FPAY), a $12.65 million market cap company with annual revenues of $139.8 million, announced Wednesday that it has amended its existing credit agreement and related fee letter to permit interim financing for immediate working capital needs. According to InvestingPro analysis, the company has been quickly burning through cash, though it maintains strong liquidity. The amendment was executed on Monday between FlexShopper 2, LLC, a wholly owned subsidiary of the company, and Powerscourt Investments 50, LP, acting as administrative agent and lender.

According to the company’s statement, the changes to the credit agreement and fee letter enable the administrative agent to provide interim financing to FlexShopper 2, LLC. This amendment is intended to fund the company’s immediate working capital requirements.

The credit agreement was originally entered into on March 27, 2024, and has since been amended on April 9, 2025, and April 30, 2025. The most recent amendment, dated Monday, is the third modification to the credit agreement and the first amendment to the fee letter.

Details of the amendment were included as an exhibit to the company’s Form 8-K filing with the Securities and Exchange Commission. FlexShopper’s common stock is listed on the Nasdaq Stock Market under the ticker symbol FPAY.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, FlexShopper, Inc. has been granted a 180-day extension by Nasdaq to file its overdue financial reports, allowing the company until October 13 to submit its 2024 annual report and first-quarter 2025 financial statements. This extension ensures that FlexShopper’s shares will continue trading on Nasdaq during this period. Additionally, FlexShopper has entered into a strategic partnership with ICON Vehicle Dynamics, enabling customers to purchase off-road performance parts through FlexShopper’s lease-to-own financing options.

Significant leadership changes have also occurred, with the termination of H. Russell Heiser Jr. from his roles as CEO and CFO. John Davis, previously the Chief Operating Officer, has been appointed President and assumed the duties of principal executive officer. FlexShopper has engaged North Country Capital LLC for interim management and restructuring advisory services, appointing Matthew A. Doheny as Chief Restructuring Officer.

Furthermore, Denis Echtchenko has resigned from the Board of Directors, with Steven Varner appointed as his successor. The company expressed disagreement with the assessments in Echtchenko’s resignation letter. These developments highlight FlexShopper’s ongoing efforts to navigate leadership transitions and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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