The US Bankruptcy Court gave an order to FlexShopper, Inc. to obtain DIP financing on an interim basis on December 31, 2025. As per the order, the debtor has been authorized to obtain a term loan credit facility in the amount of $2 million out of $8 million from ReadySett LLC with Powerscourt Investments 50, LP acting as the administrative agent. The DIP loan would carry an interest rate of 15% p.a., along with an additional 4% p.a. interest in the event of default.
As per the terms of the DIP agreement, the loan carries Facility Extension Fee and commitment fee of 1.5% p.a. The DIP facility would mature on 80 days following the petition date, i.e., March 12, 2026. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $25,000 towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing shall occur on January 21, 2026.
