Rent deadlines and payday schedules typically don’t line up, and that can be a problem for both renters and property managers. Between the added stress, late fees, and even eviction processes, the lack of timely rent payments can create extra work and drain time and resources from everyone involved.
Flex is working to change that, tackling a fundamental mismatch that affects renters’ ability to pay their rent on time. Their mission is to provide a more equitable rent experience that enables better cash flow for renters throughout the month.
Flex’s core product, Flexible Rent, provides renters with a line of credit to pay the full rent amount to property managers immediately, while repaying Flex according to a more manageable schedule throughout the month. Flexible Rent also supports long-term financial stability with tools like on-time payment credit reporting, which helps renters build their credit. With this innovative approach, Flex has already helped millions of renters pay their rent on time and avoid late fees and penalties while also helping property management companies reduce vacancy, bad debt, and evictions.
Enabling this model demanded payments infrastructure with precision control, flexible integration, and reliable processing—and Flex needed a partner that could deliver it at scale.
Breaking Free From Payment Limitations
Before working with Lithic, Flex used a payments platform with significant limitations. Their previous provider couldn’t support card payments, leading to manual processes that were clunky, time-consuming, and prone to errors.
Flex’s previous provider also lacked the correct BIN type, a critical challenge that led to transaction declines, merchant acceptance issues, and a frustrating customer experience.
Without real-time controls, Flex had no tools to ensure rent funds were used securely—and, more importantly, for their intended purpose. Without robust reconciliation and reporting, financial operations became bogged down in manual oversight, which slowed growth and increased risk.
The Flex team knew they needed a new partner that could offer:
- API-first architecture to integrate seamlessly into their tech stack
- Custom spend controls and merchant restrictions for fraud protection
- Real-time funding and card issuance for time-sensitive rent payments
- Detailed financial reporting for precise reconciliation and operational oversight
- Flexible fund flows aligned with their internal ledger and servicing systems
- Scalability to support peak periods like the first of the month
In short, the right partner would help Flex prevent fraud, enable secure scaling, and incorporate intelligent workflows directly into their products.
Building a Collaborative Technical Foundation
Flex chose Lithic for the robust infrastructure capabilities and consultative implementation approach that started on day one. Lithic worked cross-functionally with Flex’s product, engineering, and compliance teams throughout the process, ensuring the solution addressed all of their technical and regulatory requirements.
Through this collaborative development process, Lithic created a customized fund flow specifically designed for Flex’s business model. The tailored approach optimized both interchange rates and merchant acceptance—critical factors for maintaining favorable economics while delivering reliable payment experiences.
Flex now has a virtual card infrastructure tailored specifically to rent payments, with every issued card designed for secure, timely transactions. Lithic’s solution delivers:
Instant virtual card issuance with real-time creation when rent is due
- Precise transaction controls with merchant-specific restrictions and exact spend limits
- Funding options to optimize cash flow and eliminate idle balances
- Custom expiration parameters for after use or during predefined payment windows
- Seamless UX integration keeping payment complexity invisible to renters
- Full control over ledgering and servicing logic through integration with existing systems
Lithic optimized this new architecture to support the high-stakes nature of rent transactions, providing both control and reliability. Lithic’s flexible solution has enabled Flex to implement exactly the product they envisioned, with every issued card designed for a single purpose: secure, timely rent payment.
Because controls are embedded directly into Flex’s system, renters enjoy a frictionless payment experience while the backend remains fully auditable, secure, and efficient.
Expanding Market Reach and Operational Efficiency
Partnering with Lithic unlocked significant gains for Flex across the board. They were able to transform both their operations and their customer experience in ways that directly impacted business growth. Thus far, the Flex team has:
Reduced fraud through real-time spend controls and merchant-specific restrictions
- Streamlined financial operations with automated reconciliation and detailed reporting
- Expanded market reach to properties without direct integration, broadening their total addressable market
- Enhanced engineering efficiency by eliminating manual card workflows and payment troubleshooting
- Improved customer trust with consistently reliable, on-time rent payments
- Accelerated onboarding through instant virtual card issuance and reduced friction
- Increased customer retention through improved reliability and service quality
- Boosted margins by reducing support tickets and payment failures
The versatility of their upgraded platform has allowed Flex to offer their game-changing service to more renters with greater precision and scale. Now, with Lithic’s powerful infrastructure in place, they’re positioned to support renters throughout their financial journey. By giving renters more control over their biggest expense, Flex is delivering on their promise to create a more equitable rental experience.