OAREX v. Them: Why We’re Superior To Lenders

Digital media is pretty new. It’s really only been around for 20 years or so. And it’s quickly evolving. Lots of services have popped up to cater to the space. There’s ad tech, ad exchanges and fin-tech firms like OAREX.

There are a few options to finance your digital media firm. You can borrow against invoices, or you can sell your invoices. Selling an invoice is also known as “factoring”. OAREX allows you to factor your invoices for cash up front. Here are 5 main reasons OAREX is a more superior choice than loans.

5 Reasons OAREX Is Better Than Lenders

1. We take collection risk.

As a factor, we buy invoices from digital media firms. This is our way of funding them. We take the risk that we don’t get paid on the invoice. Lenders don’t take this risk. Instead they hold you liable for any missed payments, just like any other loan. The only risk we don’t take are certain advertiser disputes.

2. No Awkward Lender-Borrower Dynamic.

The firm paying the invoice is liable to pay OAREX. As the seller of the invoice you don’t owe us anything except the invoice itself. So there is no lender-borrower dynamic which could make you vulnerable if we don’t get paid.

3. We’re flexible and convenient.

Because we’re not a lender, we don’t have a “borrowing base”. A borrowing base is a complicated math formula that basically limits your available funds. Instead, we offer up to 80-90% of the invoice value itself. No borrowing base means credit no limits. That means we’ll grow with you as much as you need.  After we get paid, we kick back the balance to you, minus our fee, 30 days later.

4. We are who we say we are.

Many lenders disguise themselves as factors. The distinguishing factor is #1 above – do they take collection risk, or don’t they? Here is one thing to look for: in their contract, they will refer to themselves as the “Buyer”, and you the “Seller”. There will be a clause that says something like, “the relationship between the Parties is that of a Buyer and Seller, and not a Lender and Borrower.” But if you read the full contract carefully, you’re still liable if an invoice doesn’t pay. They don’t take collection risk. Ultimately this is a loan disguised as factoring. Also, you should look for a “buy back clause” that allows them to force you to buy back the invoice from you, any time they choose. 

5. No Personal Guarantees.

Unless there is a very special circumstance, we don’t require you to sign a personal guarantee. No covenants you have to abide by either except you can’t lie, mislead or defraud us (obviously). But it’s important to note, if we don’t get paid on an invoice, we can’t come after you personally. Your personal assets and family are safe.

6 Reasons To Use OAREX

We take collection risk from you.

No lender-borrower dynamic.

No borrowing-base, we grow with you.

No covenants or personal guarantees.

Spend up to 8X more.

We are who we say we are.