Many real estate agents start their businesses on a shoestring. Even when an agent has been able to secure dozens of listings and potential buyers, there are a number of costs agents incur in the time between signing a listing agreement and closing a deal. Fortunately, today’s real estate agents can rely on commission advances from places like Express Cash Flow to ensure the bills are paid on time.
Here are 3 reasons commission advances can work for your business.
Traditional Loans May Be Hard to Attain
Traditional banks and lenders are often leery of loaning money to real estate agents and brokers. As you know, your income can be unpredictable, swinging wildly depending on the local housing market and even the season. Banks know this too, and many are reluctant to lend money to an agent who may have unpredictable income and is unwilling or unable to pledge traditional collateral. This can leave a hungry agent – even one with several deals in the works – in a difficult financial situation.
Running a Business Is Expensive
Though an agent may have an impressive number of deals pending, he or she may find themselves cash short when critical bills come due. Association and board dues can be a hefty expense, as well as access to the local MLS. To make matters worse, these fees generally come due at about the same time. Additionally, one of an agent’s most important expenditures – marketing – is ongoing. Those signs, flyers, open house goodies, and websites are a necessary part of doing business, and they aren’t free.
A Short Term Advance Can Hit the Spot
Traditional loans are great, but as a real estate agent, you don’t necessarily need a long term loan. While some banks will offer loans with repayment terms as little as 90 days, these loans are generally tied directly to an agent’s credit score. Since a credit score doesn’t factor in future income, this may not be the best way to assess a Realtor’s ability to pay back an advance.
Commission Advances are a simple and speedy way to finance your business’s immediate costs. There’s no reason to put off paying your marketing or other business fees until your next deal closes. A commission advance will let you pay those bills today, and continue to grow your business.
Advance commissions in California are a simple and speedy way to finance your business’s immediate costs. There’s no reason to put off paying your marketing or other business fees until your next deal closes. A commission advance will let you pay those bills today.