What Is A Commission Advance?
Why should you have to wait for your commission until the closing day to get paid when you could use a commission advance instead?
- No Credit Checks–Look for real estate commission advance companies that don’t require a credit check. Advance companies provide you with funding based on a contract of sale and a pending commission, which you sell to them. Your Purchase and Sales Agreement is the collateral for your advance.
- Same-Day Approval– The approval and underwriting process should be quick with any advance company. The longer process is usually gathering DocuSign signatures and getting confirmation from brokers and escrow companies.
- Simple Application– Advance companies usually have an online application. The advance company you choose to work with should offer a quick application and a very concise and clear list of documents that can be uploaded.
What Do You Need?
The documents for a commission advance are simple:
A. Purchase and Sales Agreement
B. Driver’s License
C. Bank Account Information
D. Broker and Escrow contact information
E. Summary of Closed Transactions
- Multiple Commission Advances – Every advance company is different but usually you can have up to 2 or 3 advances at one time. Some commission advance companies tranche or fund in 2 payments because the agent requests a large advance amount.
- Listing Advance vs. Commission Advance – some companies offer Listing Advances, which is when there is no identified buyer but only a listing agreement with the seller. Traditionally at least 2 or 3 listings in order to qualify for a Listing Advance. A commission advance is when a broker or agent receives a portion of their commission prior to closing.
Find a commission advance company that fits your needs and works with you. Some regional franchises may have different underwriting procedures due to state rules, but most nationwide advance companies like Express Cash Flow provide excellent service. Check them out at ExpressCashFlow.com.
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