Flexiti Financial (Formerly Wellspring Financial)

Flexiti Financial, based in Toronto, operates as a prominent Canadian point-of-sale (POS) financing provider, structured to enhance sales for retailers by offering flexible payment solutions to consumers. The company was founded in 2013 by Peter Kalen, a seasoned executive with extensive experience in the retail credit card sector at institutions like Sears Financial, President's Choice Financial, and Citibank Canada. Kalen identified a market gap for sales financing, particularly for small to medium-sized businesses, following the exit of several large players from the Canadian market after the 2008 financial crisis. He aimed to address the slow approval times and stringent terms of traditional financing that led to lost sales.

Flexiti's business model centers on providing a seamless, paperless, and omnichannel platform that allows consumers to apply for and receive instant credit approval for financing at the point of sale, both in-store and online. The platform is designed for quick integration with merchant systems and facilitates credit decisions in under three minutes, leveraging mobile ID scanning technology and proprietary algorithms to assess consumer credit risk. The company makes money by providing these financing solutions, which include options like 0% interest promotional periods and equal monthly payment plans. If the promotional balance isn't paid in full by the expiry date, interest accrues at the cardholder agreement's annual interest rate. Its clients are retailers across various sectors, including furniture, appliances, jewelry, electronics, and home improvement, with notable partners like The Brick, Leon's, Staples, and Wayfair.

The core service is the FlexitiCard, a virtual private label credit card that, once approved, can be used repeatedly within the Flexiti network of over 8,000 retail locations without the need for reapplying. This revolving credit line allows customers to make big-ticket purchases more affordable by deferring payments or breaking them into manageable installments. A key differentiator is the high credit approval rate and dedicated customer service, which helps retailers increase sales volumes. In March 2021, Flexiti was acquired by CURO Group Holdings Corp. for approximately C$155 million, a move intended to leverage CURO's financial strength and lending expertise to accelerate Flexiti's growth. Following the acquisition, Flexiti continues to operate as a standalone business. The company has achieved significant milestones, including reaching C$1 billion in its loan book and over C$2 billion in lifetime originations by late 2022.

Keywords: point-of-sale financing, buy now pay later, BNPL, consumer credit, retail financing, private label credit card, instant financing, customer financing solutions, omnichannel financing, merchant payment solutions, Peter Kalen, Canadian fintech, credit approval, sales financing, big-ticket retail, flexible payments, e-commerce financing, in-store credit, consumer lending, FlexitiCard, CURO Group, interest-free financing, payment plans, loan origination