- September 9, 2019
- Posted by: Hanna Kassis
- Category: Company News
CLEVELAND, OH – On July 22, we closed on a line of credit for $50M, led by Arena Investors of New York. The funds will be used to buy invoices from high growth digital media firms. This gives them quick access to the cash they need to grow, without the need to take on debt or raise VC funds.
Cash Flow Gaps Kill Digital Media Growth
Many digital media firms must wait 30-90 days to get paid, but have to pay vendors up front for service. This creates a big cash flow gap that makes it hard to scale. They often times must use their cash on hand or credit cards to fill a cash flow gap, because they cannot access capital.
Quick Access To Capital Is Hard To Come By
Many digital media firms cannot access capital in the time they need to. Banks often deny them for credit. Even if approved, banks don’t move fast enough to meet their needs time. Additionally, VC money in digital media has dried up in the last few years.
OAREX Offers Risk-Free Growth Capital On Demand
OAREX offers digital media firms capital on demand. How? They can sell their invoices for cash up front, weekly, monthly or on demand, in order to meet their capital needs. With weekly fundings, firms get their most recent 7-days earnings paid out right away. This allows them to spend the same dollar 8x more often than if they used their own cash. For example, the average time to collect on an invoice is 60 days. Without OAREX, firms can only spend the same dollar once every 60 days. With OAREX, firms can spend the same dollar 8x in a 60-day period. This allows firms to grow bigger, much faster. Once a firm sells an invoice, OAREX takes the credit and financial risk that the invoice doesn’t get paid.
Get a Term Sheet from OAREX in 10 Minutes or Less
OAREX now offers term sheets to prospective clients in 10 minutes or less. Firms can apply online at go.oarex.com, upload their customer info, and receive a term sheet via the portal. Upon accepting the terms, firms can link their dashboards, upload invoices, and sign contracts for funding. The typical turn around time is 3 business days for first funding, and on demand for future fundings.
OAREX Offers Free Credit Data
As a creditor, OAREX has receipt data on 150+ ad tech firms. To price invoices they assign a risk score for each one. Every three months OAREX release a study, which has pay info for each firm. The report has become the industry benchmark for pay performance.
Read the full press release here.