The entire purpose of realtors’ commission advances is to let the agents get their commission whenever they want after signing a contract. They would not require going on waiting until closing to collect their commission. A commission advance actually is supposed to be a monetary transaction that involves realtors selling a part of their outstanding commission at a certain discount obviously, in exchange for instant cash.
You are aware that real estate agents are often required to wait for weeks or sometimes even for months before actual closing takes place. And since these real estate agents would be collecting their commission only at closing, certain financial issues could be cropping up. Fortunately, realtors’ commission advance was introduced for allowing the real estate agents easy accessibility to real cash and now there is no need to wait for cash until closing.
Several real estate agents initiate their businesses with a very small budget. Even though an agent has been successful in securing dozens of listings, as well as, potential purchasers, there would be still quite a number of costs incurred by agents during the period between when he actually signs a specific listing agreement and closes a deal. Fortunately, real estate agents in the present times are able to rely on the commission advances for making sure that all the bills are paid timely. Thanks to professional and reputed organizations such as Commission Express, real estate agents are able to pay all their bills on time even before the official closing takes place.
Here are some of the main reasons why commission advances could make sense for your business.
Conventional Loans Are Difficult to Get
Traditional banks and other conventional financial institutions or lenders are quite hesitant or reluctant to lending money to real estate brokers and agents. This is simply because their income is not stable and could be quite unpredictable. Their income would be depending predominantly on the season and also the local housing scenario. Therefore, banks are quite unwilling to lend their money to real estate agents with unpredictable and unstable financial income and who are not able to provide any traditional collateral. This could be leaving a realtor agent in a financial tight spot despite having several deals in his pocket.
Operating a Business Could Be an Expensive Affair
Often, you would find an agent with quite a few deals pending, yet, he would be short of cash for paying off some of the crucial bills. Board or association fees or bills could involve hefty amounts. Just to complicate issues further, often these heavy bills require being paid at the same time. On top of that, marketing and promotion is an ongoing process necessitating heavy expenses for flyers, signs, open house goodies, and also, websites. All these are an integral part of running the business and they all would be costing good money.Commission advances could come in handy.
An Effective Short Term Advance Is the Best Bait
Conventional loans are really good but real estate agents do not essentially require any long-term loans. While certain banks would be offering loans for only 90 days but these sorts of loans could be impacting your credit score. It is best to rely on commission advances instead.
Commission advances are supposed to be an easy and speedy method of financing your business’s immediate expenses. Moreover, there’s no reason or business sense inunnecessarily putting off payments forall your business or marketing fees untilthe closing of your deal. A commission advance would be effectively allowing you to pay all those bills currently, and help you to keep growing your business. Remember that commission advances are a great way of jumpstarting your business.