OAREX: Empowering Digital Advertising with Financial Flexibility
Like most industries, in digital advertising cash flow is a critical challenge. OAREX (Online Ad Revenue Exchange) offers a unique solution by providing on-demand capital to publishers, ad tech platforms, media buyers, ad agencies and creators. We had the opportunity to speak with Nick Carrabbia, EVP of OAREX, to learn more about how their services are transforming the financial landscape for these stakeholders.
Meeting the Cash Flow Challenge
The advertising sector often struggles with delayed payments, which can severely impact cash flow. Payment cycles can range from 30 to 120 days, and sometimes longer. This delay hampers the ability of businesses to invest in growth and manage day-to-day operations. OAREX addresses this issue by offering upfront payments for future receivables, bringing certainty to cash flow so companies may scale and thrive without financial strain.
The OAREX Process
The process OAREX uses is designed to be seamless and efficient. Here’s a simple breakdown of how it works:
Application - Businesses apply for funding through OAREX's user-friendly onboarding platform. The process takes 10-15 minutes to complete and they can receive a term sheet within 24 hours of applying.
Verification and KYC - OAREX offers transparent rates and terms, with no credit checks or personal guarantees required. After accepting their term sheet, the verification and KYC process begins. Typical turnaround from here is 3-5 business days.
On-Demand Funding - Approved businesses that have completed the onboarding process can begin receiving upfront payments based on their needs. OAREX offers daily, weekly, monthly or as-needed funding schedules and allow their users the freedom to choose a cadence that works best for them. Thus, enabling them to overcome their capital constraints and freely manage operations or invest in growth.
Differentiation and Industry Expertise
OAREX stands out in the market due to their deep industry expertise and flexible approach. Unlike traditional lenders, OAREX understands the unique challenges companies face across the advertising and media landscape. They offer several key advantages:
Industry Knowledge - OAREX's team has extensive experience in traditional and digital advertising, allowing them to tailor solutions across all verticals.
Speed and Simplicity - Much like the application process, OAREX’s general approach is centered around being nimble. Their funding process is quick and straightforward, ensuring businesses can access liquidity without unnecessary delays or restrictions.
Flexibility - OAREX’s unique approach and experience enables them to work with a broader segment of the industry. Additionally, OAREX avoids burdensome terms that are often required by other lenders, such as: personal guarantees, warrants, restrictive covenants, hefty termination penalties and a host of other fees.
Transparency - Trust and transparency are paramount. Their terms are clear and there are no hidden fees. OAREX clients also have access to an asset management platform where they can access data in real-time. Additionally, they freely share their first party data in various industry reports.
Mitigating Risks and Maximizing Opportunities
OAREX also helps businesses manage credit and liquidity risks. When OAREX accelerates an invoice, they also assume some of the credit risk from their client. This protection is a risk that other lenders do not normally take. Additionally, their services enable businesses to capitalize on more growth opportunities. For example, publishers can use OAREX’s on-demand liquidity solutions to scale their return on ad spend (ROAS) exponentially. This is especially valuable during high-demand periods like Q4, when there are many opportunities and liquidity is often the only limiting factor.
Nick emphasized the importance of understanding risk as a double-edged sword. “While risk management is crucial, businesses also need to be prepared to seize opportunities,” he said. “OAREX's non-dilutive liquidity solutions allow our clients to access yesterday's revenue today, providing the financial flexibility needed to grow and succeed in a competitive market.”
Real-World Impact
Nick shared several success stories where OAREX's services have made a significant impact. For instance, a mid-sized intermediary was able to secure new supply partners by using OAREX to accelerate payouts from slow-paying demand partners, bridge their cash flow gaps and offer more aggressive pay terms downstream. Another example involved a publisher who leveraged their OAREX facility to maintain smooth operations during a seasonal dip and when volume picked up they had the infrastructure in place to scale traffic and maximize returns.
For Fastener.io clients, OAREX represents an opportunity to manage cash flow effectively, scale operations, and drive sustainable growth (while also preserving their equity). Their professional, yet approachable, services make them an ideal partner in the journey towards financial stability and overall success in the digital advertising industry. If this sounds like something that would be helpful to you, let us know and we’d be happy to make an introduction to Nick and the team at OAREX.
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