Ask any business owner what the secret of their smart cash flow management is, and pat comes to the reply – easy access to credit lines. Every business has to depend on some financial support to take care of lowdown in cash flow that can happen anytime. If the dip is momentary, which happens in most cases, a quick infusion of cash by availing the credit lines helps to overcome the crisis.
Almost every business across the industries has some financial arrangement in place that provides the support in times of need. The only exception is the real estate sector where real estate agents who are professionals and run their own business do not enjoy the support of any financial resources. This used to be true until not very long ago when an alternative method of business funding for real estate agents started gaining popularity.
The New Arrangement
Although the financial arrangement is new for real estate agents, in essence, this was in practice in other industry segments. The arrangement is similar to invoice discounting that allows businesses to realize the cash from sales proceeds immediately on executing the sale without having to wait for fulfilling the credit terms.
For real estate agents, the income comes from the commission that they receive on completion or closure of the deal. The closure usually takes some time, as it has to go through a legal and commercial process. Just like invoice discounting, the agent receives the real estate agent cash advance as soon as he or she can produce the sale deal document to the financial company. This does away with the waiting time involved in earning a commission.
Alleviating The Hardship of Delayed Commission
Every industry has its ways of working, and certain norms become deep-rooted that every professional has to follow. Receiving commissions only after deal closure is such a norm that real estate agents have to live with. The commission advance helps them to encounter the delays smartly and keep their business insulated from the financial shocks resulting from throttled cash flow. The arrangement helps real estate agents to learn the tricks of surviving through hard times without any hardship. This gives real estate agents more confidence in availing new business opportunities.
Looking for Advance Commission Provider
The internet is the best place to search to advance commission providers. You can even seek referrals from friends in the trade who have availed the services. Make a comparison of offers of different providers before taking a final call because although the services are similar, the fees structure can be quite different. Look for service providers that declare all fees upfront without anything hidden. The fees can vary between different service providers and anything around 10% for a first time client should be a reasonable offer.
The best bargain would be to pay the fees at closing so that you get the cash without paying anything upfront. However, you should pay back the advance within the agreed period to avoid paying added fees.