With the decline and volatility in CPMs since the COVID-19 fallout, we understand the need to become a gross profit hawk. And since our fees a part of a digital media firm’s gross profits, we are accommodating new and existing clients with lowered fees. In lock-step with the Federal Reserve bank cutting interest rates, we’ve lowered our monthly OAREX fees and got rid of all set-up fees.
Summary of OAREX Fees
Free to Sign Up, 0.33% per 10 days, or 0.99% per month.
Here is a summary of what you can expect with OAREX, from the time you open an account to parting ways:
- No underwriting fees – we eliminated fees for background checks and UCC security filings.
- No set-up fees – historically we would charge an extra 1% of the first sale of invoices only. That doesn’t exist anymore.
- 30-Day Draw Fee – 1-2% for the first 30 days after you sell an invoice.
- 10-Day Fee – as low as 0.33% per 10 days, beginning day 31.
- No minimum balance requirements – we rarely enforced this, but have waived it indefinitely.
- No early termination fees – we never had these anyway.
- No exit penalties – we never had this in our contract.
It’s that simple. Sign-up for free and open an account for funding, then like an ATM, cash when you need it.
Breakdown of Pricing Requirements
Our pricing is simple. You will be charged the draw fee, and then after 30 days, the pro-rated price every 10 days, until paid.Also note, the minimum balance is not required to avoid fees; rather, it’s required to keep pricing.
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OAREX Fees – Deal Example
An invoice that is payable net 60, and pays on day 67, you will pay 2.43% (1.1% + 1% + 1/3% = 2.43%). If your deal does not fall into Programmatic Accelerate or Programmatic Baseline, the pricing is determined on a deal by deal basis from 1.99%. This pricing is available in the US and Canada only. Programmatic Accelerate requires $50K minimum monthly revenue from programmatic SSPs and Exchanges.
OAREX Fees – Cash Flow Example
Here is an example assuming Programmatic Accelerate Pricing, and funding at the beginning of each month (vs. daily, weekly or on-demand):
- You have $100,000 in Accounts Receivable
- Net 60 terms.
Timeline of Funds
- Net 0 – you receive $90,000
- Net 60 – we get paid $100,000 by your customer
- Net 90 – we pay out your reserve of $7,900 which is the remainder of the purchase price (or the remaining $10,000, minus our fees of $2,100). Reserve gets paid out on a rolling 30-day basis.
Fees are equal to $2,100 / $100,000 = 2.1% over 60 days (1.05%/mo. avg)
- Draw Fee $1,100 (1.1%)
- Pro-rated Fee of $1,000 (0.33% x 3 = 1%)
10-Day Bucket Examples
Assume the invoice is late – you pay additional 0.33% for each 10-day bucket (not cumulative)
- 1-10 days late = 0.33% x $100,000 = $333 = $2,433 total fees over “70” days
- 11-20 days late = 0.66% x $100,000 = $666 = $2,766 total fees over “80” days
- 21-30 days late = 1% x $100,000 = $1,000 = $3,000 in total fees over “90” days
No tricks or gimmicks. Just know you will always pay the stated Draw Fee, whether the invoice pays tomorrow or in 30 days. Once you fall into the first 10-day bucket (day 31), you will be charged the stated 10-Day fee.
How OAREX Compares
We’ve published a lot of content about why we’re better then VCs, banks, credit cards or your own cash. But here is a breakdown.
For more, check these articles out:
Get an OAREX Term Sheet in 10 minutes or less
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Why Using OAREX is Better Than Your Own Cash
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