Alternative Consumer Financing Option
WHAT IS IT We offer a payment plan “in a box” for main street merchants. 2
CONSUMER FINANCING IS INCOMPLETE � Despite our best efforts, some consumers simply can’t get approved for financing � 66MM Americans have a FICO score below 599 You’re losing GOOD customers that are ready and willing at the You’re losing GOOD customers that are ready and willing at the register. register. 3
HOW WE’RE MAKING IT BETTER Consumers apply for store credit (up to 70% of a product’s price). INSTORE FINANCE • funds and account verification • provides consumer support • handles all billing • automates direct withdrawal • full service collections • Algorithms significantly reduce risk of defaults • sends monthly checks to merchant 4
APPROVAL PROCESS After FLEXXBUY InStore Finance identifies a worthy consumer, the consumer pays 30% to 50% down towards the purchase price (covering the your cost of goods) and pays the balance over 9 or 18 months. To qualify for FLEXXBUY InStore Finance store credit consumers To qualify for FLEXXBUY InStore Finance store credit consumers must provide : must provide : � Pay down payment at register � Pay down payment at register � proof of an approved bank account � proof of an approved bank account � a $49 processing fee � a $49 processing fee 5
PROOF IS IN THE NUMBERS In 2013, InStore Finance merchants averaged $144K in added sales (some as high as $775K) Our average merchant recovers 90% of the total sale amount. Our average merchant recovers 90% of the total sale amount. 6
90% PAYMENT SUCCESS RATE ① You collect 30% at the point of sale. ② You earn 100% of all interest. ③ We handle all collections for you. How we collect on your past due customers : How we collect on your past due customers : � email account delinquency notifications � email account delinquency notifications � send monthly collections letters � send monthly collections letters � contact all customers twice a week for 90 days � contact all customers twice a week for 90 days � send to 3 rd party collections after 90 days � send to 3 rd party collections after 90 days 7
FEE STRUCTURE Who Pays… Per Consumer Contract Consumer $49 processing fee Consumer 14.9% or 19.9% (paid to the merchant) Merchant 5% service fee Merchant $100 one time setup fee *We only earn the 5% transaction fee if we are successful collecting the customers monthly payment 8
CONNECTING THE DOTS $2,000 Sale @ 19.90% $600 down payment = goes into your register $49 processing fee = 72 hours later from FLEXXBUY InStore Finance The balance is paid over the next 9 to 18 months. You receive 100 percent of the amount collected less the 5% processing fee 9
CONNECTING THE DOTS $2,000 Customer Purchase Price and 9 Month Payment Plan Store Cost Profit Margin Down Payment Monthly Payments $170 $170 $170 $170 $170 $170 $170 $170 $170 $600 $600 collected at time of Additional $1,530 collected sale over 9-months ** You decide how much to take as a down payment 10 and how many months to extend the payment plan
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