OAREX has closed a line of credit for $50M from a group of lenders led by Arena Investors, LP, a New York based global investment firm. The funds will be used to provide funding to high growth digital media firms, allowing them quick access to the cash needed to grow without having to raise VC funds.
Cash Flow Gaps Kill Digital Media Growth
Many digital media firms must wait 30-90 days to receive their revenue, but have to pay expenses up front. This creates a big cash flow gap making it hard to scale. These firms must often use their cash on hand or credit cards to fill the gap because they cannot access capital.
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Quick Access To Capital Is Hard To Come By
Many digital media firms also cannot access capital quickly enough. Banks often deny them for credit and, even if approved, banks don’t move fast enough to meet their needs. Additionally, VC money in the space has dried up in the last few years, leaving few sources of capital to the industry.
OAREX Offers Risk-Free Growth Capital On Demand
OAREX offers digital media firms capital on demand. How? OAREX buys their invoices for cash up front. Clients can sell invoices weekly, monthly or on demand, in order to meet capital needs. With weekly funding, 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.
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OAREX Also Offers Free Credit Data
As a creditor collecting payments, OAREX has receipt data on 150+ digital advertising exchanges and intermediaries. Every three months, OAREX releases a study, which has payment information on each of these firms and the industry as a whole. The report has become the industry benchmark for pay performance.
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 online. Upon accepting the terms, firms can link their dashboards, upload invoices, and sign contracts for funding. The typical turnaround time is 3 business days for first funding, and on demand for future fundings.
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