OAREX Locks In $50M Bank Debt for Future Digital Payouts

Rhea-AI Summary

On December 14, OAREX secured a $50M line of credit from East West Bank, raising its total credit line to $100M. The capital will enable OAREX to purchase future digital payouts from online businesses, which face long wait times for revenue collection. By offering immediate funding, OAREX allows businesses to reinvest capital rapidly, enhancing their return on ad spend. Established in 2013, OAREX is a leader in financing online businesses, with this credit line exemplifying the backing of East West Bank in the digital market.

Positive

• Secured a $50M line of credit, increasing total credit to $100M.
• Immediate funding allows online businesses to enhance their growth by reinvesting capital quickly.

Negative

• None.

CLEVELAND, Feb. 1, 2021 /PRNewswire/ -- On December 14^th, OAREX closed a $50M line of credit with East West Bank, an FDIC insured institution. This new capital brings OAREX's total line of credit to $100M, with the other $50M secured from Arena Investors of New York in July, 2019.

$100M to Buy Future Digital Payouts

OAREX will use the funds to continue to buy future digital payouts from online businesses. Access to liquidity for a rapidly growing online business is necessary to sustain growth, because their models are capital intensive.

Many internet-based businesses are dependent on capital because of the long payout terms associated with digital revenue. Sometimes, an online business can wait as long as 120 days to collect on sales. That's where OAREX comes into play.

Trade In a Digital Payout, Get Capital Now

When an online business gets paid up front, they can buy more users and traffic, in turn driving more sales. The problem is they have to wait.

With OAREX's future digital payouts product, online businesses can get paid now, and reinvest the same dollar multiple times, instead of waiting 30-120 days. This allows OAREX users to turn the same dollar over and over again, increasing total return on ad spend (ROAS). That means more scale, faster.

How OAREX's Future Digital Payouts Works

Through OAREX, users can realize future digital revenue as earned, on a daily, weekly, or monthly basis, rather than waiting 30-90+ days.

The first step for users is to open an account in 30 seconds or less. Users can then connect digital revenue dashboards to verify data. Within minutes, users get an offer from OAREX, with the first funding in 72 hours or less.

Once a user is on the exchange, OAREX's funding is on-demand and paid within the hour. If a user needs capital, they simply sell the future digital payout and funds appear in their account. OAREX reports all digital revenue and payout data on a daily basis, via its platform.

OAREX Specializes in Funding Internet Businesses

As a Capital-as-a-Service company, OAREX understands the risks associated with online businesses. This allows users on the exchange to get better terms from OAREX, than what they would get elsewhere.

Users can create an account and get started at oarex.com/products/future-digital-payouts. Referral partners, who get paid a user royalty for the life of any referred deals, can sign-up at oarex.com/partner-with-us.

About OAREX Capital Markets, Inc.

OAREX operates a digital revenue exchange where online businesses can exchange future revenue events for capital now. Established in 2013, OAREX has become a worldwide leader in financing for online businesses. East West Bank's investment in OAREX is a testament to its model and the online market as a whole. See oarex.com for more information.

About East West Bank

East West Bancorp is a publicly owned company with total assets over $53 billion and is traded on the Nasdaq Global Select Market under the symbol "EWBC". The Company's wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California.  East West Bank's Structured Finance group provides senior secured lending facilities to specialty finance companies and project finance transactions. For more information about East West Bank, please visit www.eastwestbank.com. 

Arena Investors, LP

Arena Investors is an institutional asset manager with $1.7 billion of committed assets under management as of November 1, 2020, that provides creative solutions for those seeking capital in special situations. The firm brings individuals with decades of experience, a track record of comfort with complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions that cannot be addressed by banks and other conventional financial institutions. Arena Investors' mandate is global, and also unconstrained in terms of asset class and industry. Based in New York City, Arena was formed in partnership with The Westaim Corporation, a publicly traded Canadian holding company focused on the financial services industry. See www.arenaco.com for more information. 

 

SOURCE OAREX Capital Markets, Inc.

FAQ

What is the significance of OAREX's $50M line of credit from East West Bank?

The $50M line of credit enhances OAREX's total funding to $100M, crucial for financing online businesses that face delays in revenue collection.

How will OAREX use the $100M total line of credit?

OAREX will utilize the funds to acquire future digital payouts from online businesses, allowing them to access immediate capital for growth.

When was the $50M line of credit from East West Bank closed?

The line of credit was closed on December 14.

What is the business model of OAREX?

OAREX operates a digital revenue exchange, allowing online businesses to trade future revenue for immediate capital.

How does OAREX's funding process work?

Businesses can open an account, connect revenue dashboards, and receive funding offers within minutes, with on-demand funding available.