- June 16, 2019
- Posted by: Hanna Kassis
- Category: CashFlow
Long pay terms in digital media and ad tech make good cash flow hard to achieve. There are many ways to manage cash flow. But they all come with their risks. Loans and investors each have their own specific risks. Those risks do not come with OAREX funds. Instead, our funds are risk-free. Here are 4 ways you can “de-risk” your cash flow.
1. Shift Credit Risk To Us
After we buy your A/R, we take the risk of non-payment. If your customers don’t pay us, that’s our loss, most of the time. The only risk we don’t take is dispute risk. That’s when a demand partner contests the amount that should be paid for any reason (bot traffic, install fraud, etc.).
2. Funds Without Debt
By selling your A/R to us, you can get funds without any leverage. Leverage is when you borrow cash to fill your cash flow gap. Think of using your Amex. Sure, you’ll get points. That’s great. But what if a demand partner doesn’t pay? Amex doesn’t take that risk. Now, your one loss – the demand partner non-payment – is leveraged because you still owe Amex. With leverage your potential loss is twice as big but your gain remains the same. That’s a bad trade. Why take such risk?
3. Keep Your Cash Pile
Why use your own cash when you can use ours? By selling your A/R, you can stay liquid. Money in the bank. This gives you the chance to act on opportunity or emergency. The fee you pay us is to preserve your cash pile.
4. Take Profits Off The Table
If you’re using your own cash you likely have profits tied up. Wouldn’t it be nice to get those? By selling us your A/R, you take risk off by getting profits now. Or you can keep using your own cash. With that, you keep your profits tied up in your cash flow.
5. Good Demand Partners Only
Lots of clients use our credit insight to find new demand partners. Even if we don’t buy the A/R, you can use our data to make sure you sign up with good paying firms.