How are advanced commissions for realtors different from bank loans?

By: ariya
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It might not be the most unpredictable business, yet it qualifies as uncertain when it comes to commissions and payments. It can be very difficult to control the cash flow during the slower periods. Real estate advance commissions can be a breath of fresh air in the trepid environment dominated by creditors, vendors, pending payments and bills. Any kind of a cash advance can be good enough to pay the overheads of the business and progress further into new markets.

It is a common fact that in your real estate business, your salary depends on your commission. Therefore, waiting for your commission for three months can mean living without any cash flow for three long months. That is neither expected nor welcome. Real estate agents rarely have the emergency savings that they can fall back on during these dry spells.

Advanced commissions vs. bank loans

An advanced real estate commission companies can help you get the commission you deserve, before the day of the actual closure or the payout. You can approach a reliable company with your commission agreement papers, MLS listing details, your proper identification and you can get an advance in record time. Advances in commission are not like bank loans at all. Bank loans and lines of credit can seem like the cheaper option to many agents, but for anyone dealing with cash flow troubles, these institutions are not the most helpful. Banks will ask for collaterals, and they will run through background checks on your loan histories.

No credit score checks

For anyone going through a financially troubled period, keeping their credit scores healthy is next to impossible. When banks sanction loans, they run credit score checks. People with credit scores under 600 will find it difficult to gain the bank’s favor. The advance commission companies do not check credit scores or credit history. You will be selling a part of your commission for a flat fee. They do not need to know your history of loans and credits at all.

Super fast processing

Bank loans can take seven days or longer for approval. Commission advances for real estate agents and realtors usually take less than 24 hours. They take this time to conduct a background check for outstanding liens. Any commission advance company will consider if you will meet your obligations (closing the sale and earning the commission within agreed upon time).

No interests

Bank loans require the lender to pay weekly, monthly or annual interests on the amount. These commission advance companies will charge a flat fee for purchasing a piece of your commission. When you close the sale or when your client finally pays the amount, the company gets the payment automatically. There is no role of interest or upfront fees.

In reality, the application for a commission advance takes only about 10 minutes, and the approval takes less than a day. You can also resort to the advanced commission if you have met with an unexpected high expense. This is the ideal way to an instant cash advance for any real estate agent or realtor going through a dry spell.

 

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