A recurring complaint in out of home is how long agencies and big national accounts take to pay. 90-160 days seems to be the norm. MediaMark Factoring has developed a receivables purchase product allowing you to be paid 3 days after you post, thereby eliminating slow paying receivables all together. Billboard Insider talked with Patrick Martucci, MediaMark’s Chairman and CEO to learn more about the product.Tell us about Media Mark and why it was formed.
MediaMark is a specialty finance company that provides liquidity to the out of home industry. It works with all segments of the out of home industry including billboard owners, place-based, airport, transit and mobile out of home.
How does the product work?
We buy agency and national account media contracts. You send us a copy of your media insertion order (or other media contract), a copy of your invoice as a result of that contract, and your proof of post. We both sign a Purchase Agreement, then wire you 90% of the face value of the invoice. In some cases, we notify the payor of an assignment of the receivable, in other cases we simply have the out of home company forward the payment once they have received it.
What are the benefits to the out of home company?
We unlock all the capital that is trapped in the perpetual 30, 60, 90, 120 days AR cycle. This previously idle capital can now be deployed strategically, or taken as cash flow profit. Clients that use our service never have an AR balance again, as all campaigns are paid 3 days after post.
What kinds of receivables are best suited to the product?
National and agency receivables which take several months to pay. We can handle transactions of $1,000-$25 million. Local receivables are not suited to the product because they are typically pay in advance for the month.
Is the transaction non-recourse to the out of home company?
Yes, once MediaMark buys the receivable, the out of home company no longer bears the financial risk of collection or insolvency of the payor.
What can an out of home company do to learn more?
Visit mmfactoring.com or email sseago@mmfactoring.com or call Sandy Seago at 614-361-5137.
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This was soo helpful! Major Gem 💎