As a real estate agent, you now have the option of gaining access to your money, for a fee, as soon as you close a business. That means that you do not have to wait until your client pays for you to receive your commission. You can pay your agents and have the much-needed cash for your business operations.
An advance commission is not a loan and therefore, you will not be subjected to a credit check.
Why is commission advance necessary?
Growing businesses require cash flow. If you have to constantly wait until every business you close is paid for, your business will stagnate. You will spend most of the commission you get settling debts. You may also lose good agents as they will leave. Real Estate Advance Commission is therefore very important.
Dealing with traditional financiers has the following disadvantages:
- Credit record checks
- Waiting period
- Repayment conditions
- Collateral
- Interest rates
When you opt for a commission advance, you do not face any of the aforementioned issues. You can access your cash the same day you apply for it and not have the cloud of repayment hanging over you. Your advance gets paid when your commission is paid.
How is a commission advance different from a bank loan?
- A bank loan requires a creditcheck while a commission advance does not.
- You are not required to pay a fee upfront.
- You pay a flat fee once your commission is purchased.
- You have access to money that is owed to you when you close a business.
- A bank loan gains interest and you end up paying more than the principle. A commission advance does not accrueinterest.
- Once your sale closes, your advance is settled automatically.
Benefits ofcommission advancesover bank loans
- No credit checks.
- The application process for a commission is fast and can easily be done online.
- The application can be reviewed and approved the same day.
- You can get the funds deposited into your account the same day of application.
When should you consider applying for a commission advance?
You can request an advance anytime you need money for your own or business use. Real estate can be a volatile business to engage in. It goes through high and low seasons.
An agent may go through a period when they have not closed any business. In such a scenario, the agent will need some cash to take care of financial obligations. As long as you have a proven work record, getting a commission advance should not be difficult at all.
You may need some cash for rigorous marketing during the low season in preparation for the high sales season.
When unprecedented expenses happen, like home repairs due to an accident, a commission advance can come in handy.
When considering funding options for your real estate agency, real estate advance commission should make the list owing to the benefits that it affords you with regard to keeping your growing business afloat.
