5 Uses of Real Estate Commission Advances

In order to stay competitive in the real estate agent you need funds at your disposal at all times for things such as marketing, advertising, and general business expenses. However, sometimes with deals waiting to close you may not have as much capital as you need. When this happens, a real estate agent commission advance can be considered and below are 5 reasons why they are beneficial.

1. Improved cash flow

Businesses require access to funds at all times in order to be able to operate. As a real estate agent, you are always faced with delayed commissions as you wait for deals to close. Delayed funds affect your cash flow which often poses a challenge in being competitive in the real estate industry.

A real estate agent commission advance is an excellent way to improve your cash flow and provide you with funds to pay for your expenses. This is important because sometimes even when one deal has not closed yet you may be expected to front the costs of another one. Commission advances will also ensure you have better control of your cash flow as you will be able to pay it back as soon as a deal closes.

2. Fast approval

Unlike bank loans that take several days to be approved, real estate agent commission advances take just a few hours. Usually all that is required is the application and proof of any sales you have outstanding. If there are no issues with your application, you can sometimes have same-day approval and access to funds is quick.

The commission advance process is very simple and straightforward. You will not be asked to fill out tons of paperwork to be approved and there are no credit checks involved. As a result, you will not have to worry about your credit rating affecting your chances of approval.

3. Staying relevant

As a real estate agent, you are required to stay relevant in order to thrive in the highly competitive real estate industry. To do so, you will need to market your business aggressively. A comprehensive marketing strategy will involve using all marketing channels including emails, websites,  use of local media, and social media platforms just to name a few. This strategy is costly but necessary.

Waiting for your commissions to be processed may mean losing clients to your competitors. A commission advance can help you keep them by providing immediate funds. Also, with a real estate commission advance, you get funds without compromising other operations of your business.

4. Growth of your business

A real estate agent commission advance can help you grow your business. Because the funds are readily available, you can quickly take advantage of all opportunities that may arise. Such opportunities usually offer better profits and therefore aids the growth of your company. However, the expansion of businesses can strain your funds immensely.

Commission advances can provide you with alternative funds to help expand your business. You can pay off debts that may be holding your company back using the funds from the advance and then look at the things you need to expand, such as office space, staff, and utilities.

5. Cost-efficiency

Real estate agents usually have to wait for a long period before they can receive their commission. This is because deals and the transactions involved can take time before they are finalized. This can be a significant inconvenience especially when you get hit with unexpected one-time expenses and miss out on opportunities.

Real estate agent commission advance can help agents from experiencing such costly downtime. They are more affordable compared to payday loans, and no deposits are required to get an advance. The small borrowing cost of your advance is tax deductible since it is viewed as a business expense.