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.

2. No Awkward Lender-Borrower Dynamic.

After you sell us an invoice, you’re off the hook. This means that you are not liable to pay us back. Instead, the firm paying on the invoice is liable. So there is no lender-borrower dynamic which could makes you vulnerable if things go South.

3. We’re flexible and convenient.

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

4. We are who we say we are.

Lots of lenders disguise themselves as factors. The distinguishing factor is #1 above – do they take collection risk, or not? 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 carefully, you are liable for non-payments. They don’t take collection risk. Ultimately this is a loan disguised as factoring. Also look for a “buy back clause” that allows them to force you to buy back the invoice back, any time they choose. 

5. No Personal Guarantees.

We do not require you to sign a personal guarantee. If things go South, we can’t come after you personally. Your personal assets and family are safe.

A summary of why we’re better.

• As a true factor, OAREX takes collection risk from you.
• We will never put you in a vulnerable, back-against-the-wall position.
• We’re flexible to accommodate your growth.
• We don’t require a personal guarantee.
• Most importantly, we are who we say we are.