Ethical Considerations and Best Practices in the Use of Other People’s Money and Managing the Float

The utilization of Other People’s Money (OPM) and managing the float are two critical aspects in the financial management of any business. They can be powerful tools for growth and operational efficiency when used responsibly. However, they also come with significant ethical considerations and risks that require careful management. This post will delve into the ethical considerations and best practices for using OPM and managing the float, strategies for risk management, and building trust with stakeholders.

Ethical Use of OPM and Float – Importance of Transparency

Using OPM—whether it’s from investors, lenders, or through customer prepayments—implies a fundamental trust that those funds will be used responsibly and for the purposes intended. Transparency is key to maintaining this trust. Businesses must ensure that they are open about their financial status, how the money is being used, and the risks involved. This includes clear reporting, regular updates, and honest communication about challenges and setbacks.

Ethical Practices in Managing the Float

The float refers to the time difference between when a business receives payments and when it disburses cash for its obligations. Ethically managing the float means being prudent about the timing of income and expenditures, avoiding manipulation for short-term gain at the expense of long-term stability, and ensuring that all parties understand the timing and reasons for any delays in payments.

Risk Management Strategies

Managing the risks associated with using OPM and the float involves several key strategies:

Clear Financial Planning

Businesses should have a robust financial plan that outlines how OPM will be used, the expected returns, and how the float will be managed. This plan should be based on realistic assumptions and include contingency plans for unexpected financial challenges.


Relying too much on OPM or a large float from a few sources can be risky. Diversification, both in terms of funding sources and how the float is generated, can help mitigate these risks. This might mean having a mix of equity and debt financing or ensuring that no single customer’s prepayment constitutes a large portion of the float.

Regular Monitoring and Adjustment

Risks change over time, as do business needs. Regularly monitoring financial performance, the effectiveness of float management, and the business’s overall financial health is essential. Adjustments should be made as needed to ensure that the use of OPM and management of the float remain aligned with the business’s goals and ethical standards.

Building Trust with Stakeholders

Open Communication

Building and maintaining trust with investors and stakeholders is crucial for any business using OPM and managing a significant float. This involves not just transparency but also proactive communication. Businesses should seek to inform stakeholders about their financial management practices, the performance of investments, and how the float is being managed.

Demonstrating Ethical Leadership

Trust is built on more than just results. Demonstrating ethical leadership—through decision-making, the treatment of employees, and corporate social responsibility efforts—can reinforce stakeholders’ confidence in the business. Ethical leadership shows that the business values more than just profit, which can be particularly important when navigating the complexities of using OPM and managing the float.

Engaging with Stakeholders

Finally, engaging with stakeholders—not just investors but also customers, employees, and the broader community—can provide valuable feedback and insights. This engagement can take many forms, from regular stakeholder meetings to surveys and community events. It’s an opportunity to explain how the business uses OPM and manages the float, to address concerns, and to demonstrate the business’s commitment to ethical practices and long-term sustainability.


The ethical use of Other People’s Money and managing the float are not just about following laws and regulations. They are about building a foundation of trust, transparency, and responsibility that supports the long-term success and sustainability of the business. By adhering to ethical practices, employing risk management strategies, and actively building trust with stakeholders, businesses can navigate the complexities of financial management while upholding their commitments to ethical standards. This approach not only safeguards the business’s reputation but also enhances its ability to innovate, grow, and achieve its goals in a responsible manner.


Mastering the Float: Strategies for Cash Flow Management

In the intricate dance of business finance, mastering the art of “the float” is akin to finding the perfect rhythm that keeps your operations moving smoothly. The float, a concept often shrouded in the complex veils of financial terms, is fundamental to understanding and optimizing your business’s cash flow. This blog post will demystify the float, offer actionable strategies for its effective management, and highlight some exemplary case studies of businesses that have turned float management into an art form.

Float Fundamentals

In financial terms, the float refers to the time difference between when a transaction is initiated and when it is completed, i.e., when the funds are moved and available in the beneficiary’s account. This concept is crucial for cash flow management because, during the float period, money effectively exists in two places at once: it is pending to be deducted from the payer’s account but is not yet added to the payee’s account. Understanding the float is essential for managing your business’s liquidity, ensuring you have enough cash on hand to cover your obligations while waiting for incoming funds to clear.

The float arises in various scenarios, such as with checks, electronic fund transfers, and credit card payments. Each mode of payment has its own typical float time, influenced by processing times, bank policies, and the speed of the payment systems involved. In essence, managing the float effectively means optimizing these time lags to maintain a healthy cash flow.

Effective Float Management

1. Accelerate Receivables

One of the primary strategies in managing your float effectively is to shorten the time it takes for your receivables to clear. This can involve several tactics:

  • Electronic Invoicing and Payments: Encourage customers to pay through electronic means rather than checks. Electronic payments typically have a shorter processing time.
  • Mobile Payment Solutions: Utilize mobile payment technologies that allow for immediate fund transfers.
  • Early Payment Incentives: Offer discounts or incentives for clients who pay their invoices early.

2. Delay Payables Without Penalization

Just as you want to accelerate receivables, delaying payables (without incurring late fees or damaging relationships with suppliers) can also help manage your float more effectively. This can be achieved by:

  • Understanding Terms: Fully leverage the payment terms agreed with suppliers. If a supplier offers a 30-day payment term, use it to maintain liquidity for as long as possible.
  • Electronic Fund Transfers: Schedule payments via EFT at the last possible moment to ensure funds remain in your account until the due date.

3. Maintain a Buffer

Maintaining a buffer of readily available funds can help mitigate the uncertainties of the float. This buffer acts as a financial cushion, ensuring that you can cover obligations even if incoming payments are delayed.

4. Monitor and Forecast

Regular monitoring of cash flow, coupled with accurate forecasting, is vital. Tools and software that provide real-time insights into your financial position can help you anticipate cash flow shortages and adjust your strategies accordingly.

Case Studies

Amazon’s Dynamic Cash Flow Strategy: Inc. is a prime example of a company that has mastered the art of managing the float to its advantage. By turning its cash conversion cycle into a negative number, Amazon effectively gets paid by its customers before it has to pay its suppliers. This strategy not only ensures a constant flow of cash but also allows Amazon to invest in growth opportunities and maintain competitive pricing.

Dell’s Direct Sales Model: Dell Inc. leveraged its direct-to-consumer sales model to manage its float expertly. By collecting payments from customers at the time of order and delaying payments to suppliers until after the computers were built and shipped, Dell maintained a negative cash conversion cycle. This strategy enabled Dell to grow rapidly without the need for significant external financing.

Apple’s Inventory Management: Apple Inc.’s strategic inventory management has allowed it to manage its float effectively. By maintaining minimal inventory and leveraging just-in-time manufacturing, Apple reduces the time gap between paying suppliers and receiving payment from customers. This approach not only minimizes the capital tied up in inventory but also enhances cash flow efficiency.


Mastering the float requires a deep understanding of your business’s cash flow dynamics and the ability to leverage financial strategies to your advantage. By accelerating receivables, judiciously managing payables, maintaining a financial buffer, and employing accurate cash flow forecasting, businesses can optimize their operations and secure a competitive edge. The case studies of Amazon, Dell, and Apple illustrate the profound impact effective float management can have on a company’s growth and financial health. As we navigate the complexities of business finance, let us take inspiration from these examples and strive to master the float in our own ventures.

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Unlocking Financial Strategies: OPM and the Float Across Business Models

In the intricate world of business finance, understanding and leveraging various financial strategies can significantly impact an organization’s growth and sustainability. Two such pivotal strategies are the use of Other People’s Money (OPM) and the management of the ‘float’. These concepts, while distinct, share the common goal of maximizing resources to fuel business operations, growth, and competitive advantage. This blog post delves into the nuances of OPM and the float across different business models, offers sector-specific strategies, and explores adaptations for small businesses and global considerations.

Understanding OPM and the Float

Other People’s Money (OPM) refers to the use of borrowed funds or investment from outside sources to finance business operations, investments, or expansions. This strategy leverages external financial resources to generate profits without committing the company’s own funds upfront.

The Float represents the time difference between when a transaction occurs and when funds are moved or settled. In business, managing the float effectively means strategically delaying outflows of cash while accelerating inflows, thus maximizing the use of available funds for investment or operations before they are due for payment.

Sector-Specific Strategies

Tech Startups: In the fast-paced tech industry, leveraging OPM through venture capital, angel investors, or crowdfunding platforms can provide the significant upfront capital required for research, development, and scaling. The float in tech startups often manifests in customer pre-payments for services or products in development, providing working capital before actual delivery.

Real Estate: Real estate developers and investors use OPM extensively through mortgages and real estate investment trusts (REITs) to purchase properties with a fraction of the total cost coming from their own pockets. The float in real estate involves managing the timing between when tenants pay rent and when mortgages or other expenses must be paid, optimizing cash flow.

Retail: Retail businesses utilize OPM through trade credit, where suppliers allow retailers to pay for goods after they have been sold. The float is managed by minimizing inventory holding times and speeding up the turnover rate, thus reducing the time between paying suppliers and receiving money from customers.

Adapting Strategies for Small Businesses

Small businesses and startups might find accessing OPM more challenging due to a lack of collateral or credit history. However, alternatives like microloans, peer-to-peer lending, and crowdfunding present viable options. For managing the float, small businesses can negotiate longer payment terms with suppliers and offer discounts to customers for early payments, improving their cash flow management.

Global Perspective

Implementing OPM and float strategies requires a nuanced understanding of the economic, regulatory, and cultural environments of different countries. Regulatory frameworks governing lending, investment, and payment terms vary widely, impacting the feasibility and attractiveness of these financial strategies. Additionally, the economic stability of a country influences the cost of borrowing and the risk associated with using OPM. Cultural factors can also affect payment practices and expectations, influencing the management of the float.


OPM and the float are powerful financial strategies that, when used wisely, can propel businesses across various sectors toward growth and success. By understanding the unique aspects and applications of these strategies within specific industries and adapting them to the scale of operation and global context, businesses can optimize their financial operations. Tailoring these strategies requires careful consideration of the business model, industry dynamics, and external environment but can lead to significant competitive advantage and financial efficiency.


How to Use Other People’s Money Wisely in Your Business

Using Other People’s Money (OPM) wisely is a strategic approach in business that involves leveraging external funding to finance growth, development, and expansion projects. This method allows businesses to undertake more significant or more ambitious projects than they could with their own resources alone. Here, we’ll delve into how to identify opportunities to use OPM effectively, explore various sources of OPM, and examine real-world case studies of businesses that have successfully leveraged OPM.

Identifying Opportunities for Using OPM

To effectively utilize OPM, it’s crucial to identify opportunities where this approach can maximize returns while managing risks. Here are guidelines to spot such opportunities:

  • High ROI Projects: Look for projects with a high potential return on investment (ROI) that significantly exceeds the cost of capital. OPM is best used when the returns are predictable and justify the interest or equity given away.
  • Expansion Initiatives: Whether entering new markets or increasing production capacity, expansion often requires significant capital. OPM can provide the necessary resources without depleting your reserves.
  • Innovative Product Development: Developing new products can be capital-intensive. Using OPM for such projects can help mitigate financial risks while pursuing innovation.
  • Leveraging Business Cycles: In industries with predictable business cycles, OPM can be used to scale operations up during peak demand periods without permanently committing your capital.
  • Strategic Acquisitions: Acquiring competitors or complementary businesses can be an excellent way to grow. OPM can finance these acquisitions, allowing for strategic expansion.

Sources of OPM

OPM can come from various sources, each with its advantages and considerations. Here’s a comprehensive list:

  • Loans: Traditional bank loans, lines of credit, and specialized financing (like equipment financing) are common sources. They require repayment with interest but allow you to retain full ownership of your business.
  • Investors: Angel investors and venture capitalists offer capital in exchange for equity. This option is suitable for high-growth potential businesses willing to share ownership and profits.
  • Crowdfunding: Platforms like Kickstarter and Indiegogo allow businesses to raise funds from a large number of people, typically in exchange for early access to products or other rewards.
  • Government Grants and Subsidies: Some government programs provide funds to businesses in specific industries or for specific purposes, like innovation or exporting.
  • Partnerships: Strategic partnerships with other businesses can provide capital and other resources. In exchange, partners may seek a share of profits or a say in business operations.

Case Studies of Successful OPM Use

Tesla Motors: Tesla Motors’ use of government loans is a notable example of leveraging OPM for growth. In 2010, Tesla secured a $465 million loan from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing program. This loan was crucial for financing the development of the Model S sedan. Tesla’s ability to repay this loan nine years early, in 2013, underscored the successful use of OPM to accelerate product development and company growth.

Pebble Technology: Pebble Technology, the company behind the Pebble smartwatch, showcased the power of crowdfunding as a source of OPM. In 2012, Pebble raised over $10 million on Kickstarter, significantly exceeding its initial $100,000 goal. This funding allowed Pebble to launch its product without traditional investor funding, demonstrating crowdfunding’s potential to kickstart innovative projects.

Airbnb:  Airbnb provides an example of using investor funding to scale a business rapidly. Starting with seed funding from Y Combinator in 2009, Airbnb has raised multiple rounds of funding from investors. This influx of OPM has fueled its global expansion, transforming it from a small startup to a dominant player in the hospitality industry.


Using OPM wisely requires a strategic approach, focusing on opportunities with high growth potential, leveraging various funding sources, and learning from successful examples. By identifying the right opportunities, understanding the sources of OPM, and studying real-world case studies, businesses can effectively utilize OPM to fuel growth, innovation, and expansion. The key is to balance the pursuit of ambitious goals with the prudent management of financial risks associated with using other people’s money.


Opening Doors to Success: How Express Cash Flow Fuels Real Estate Dreams

Introduction: The Essence of Real Estate Success

In the fast-paced, challenging world of real estate, success is not just about closing deals; it’s about opening doors for others. It’s about unlocking potential – not only for clients but for the agents themselves. This is where Express Cash Flow, the leading commission advance company, steps in to empower real estate professionals.

Understanding the Real Estate Agent’s Journey

Real estate agents are in the business of making dreams come true. They navigate complex markets, negotiate deals, and most importantly, transform houses into homes for their clients. However, one challenge often overlooked is the financial unpredictability they face. With commission-based income, maintaining cash flow can be a hurdle, impacting an agent’s ability to serve clients effectively.

Express Cash Flow: A Partner in Unlocking Potential

This is where Express Cash Flow shines as a crucial ally. As a leading commission advance company, they offer a straightforward, reliable solution for agents needing immediate access to their earned commissions. This service is more than just financial support; it’s a tool that enables agents to keep opening doors for their clients without financial constraints slowing them down.

How Express Cash Flow Works for You

Express Cash Flow understands the unique needs of real estate professionals. They provide quick, hassle-free access to commission funds, helping agents manage cash flow efficiently. This means agents can invest in marketing, cover operational costs, or even personal expenses without waiting for closing day. It’s a simple, effective way to maintain momentum in a competitive market.

The Bigger Picture: Building Client Trust and Success

With the support of Express Cash Flow, agents can focus on what they do best – helping clients find their perfect home or sell their property at the best value. This financial stability allows agents to invest more time and resources into understanding client needs, market research, and personal development, all of which are crucial for building long-lasting client relationships and a successful career in real estate.

Empowering Agents, Empowering Dreams

By choosing Express Cash Flow, real estate professionals are not just securing their finances; they are also ensuring that they can continue to be the key that unlocks potential for every client. They stand as partners in success, enabling agents to keep moving forward, even in the face of financial unpredictability.

Your Success, Our Commitment

“Success in real estate comes from opening doors for others. Keep unlocking potential!” With Express Cash Flow, this mantra becomes more achievable. They are not just a service provider; they are a partner in your real estate journey, committed to helping you flourish. In a world where timing is everything, Express Cash Flow ensures that you’re always ready to seize opportunities and open new doors, for yourself and for those whose dreams you turn into reality.


Deck the Halls and Sell Them All: Christmas Preparation Tips for Real Estate Agents


As the festive season approaches, it’s an excellent opportunity for real estate agents to connect with clients and make their properties stand out in the wintery market. Whether you’re staging homes for sale or hosting holiday-themed open houses, a touch of Christmas cheer can make all the difference. Here are some top tips and hacks to prepare for Christmas, specifically tailored for real estate professionals.

1. Festive Staging: Less is More

When staging homes during the Christmas season, remember that less is more. A few well-placed decorations can create a warm, inviting atmosphere without overwhelming potential buyers. Opt for neutral holiday decor that appeals to a broad audience. Think simple wreaths, subtle string lights, and a tastefully decorated Christmas tree.

2. Scent of the Season

Nothing says ‘home’ like the smell of freshly baked cookies or pine. During open houses, consider lighting a cinnamon-scented candle or baking some cookies right before visitors arrive. These familiar scents evoke a comforting, homey feeling that can make a property more appealing.

3. Virtual Holiday Tours

In this digital age, offering virtual tours with a holiday twist can be a game-changer. Showcase your listings with 360-degree tours featuring gentle holiday decorations. This approach allows potential buyers to get a feel for the property from the comfort of their own homes.

4. Personalized Holiday Greetings

Reach out to your clients with personalized holiday greetings. This could be a physical card, an email, or a small gift. It’s a thoughtful way to remind them of your services and maintain a warm relationship.

5. Community Involvement

Get involved in local community events during the holiday season. Sponsor a local Christmas event or participate in a charity drive. It’s a great way to network, meet potential clients, and give back to the community.

6. Social Media Sparkle

Use your social media platforms to spread holiday cheer and showcase your holiday-themed listings. Share tips for decorating homes during the festive season, post pictures of your festively staged properties, or create engaging content that resonates with the holiday spirit.

7. Energy Efficiency Tips for the Winter

Educate your clients on how to make their homes more energy-efficient during the colder months. Share tips on insulation, heating maintenance, and cost-effective practices. This information is not only useful but also positions you as a knowledgeable and caring agent.


Christmas is a magical time, and with these preparation tips, you can make it a profitable season for your real estate business. Remember, the key is to strike the right balance between festive and professional, ensuring your clients feel both the holiday spirit and the confidence in your ability to meet their real estate needs.

Happy holidays and happy selling!

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Holiday Tips for Real Estate Agents: Managing Finances and Staying Ahead

The holiday season, while full of joy and celebration, can also be a challenging time for real estate agents. Balancing personal expenses with professional demands can lead to financial stress. However, with the right strategies, real estate agents can navigate this period effectively. Here, we’ll explore tips for managing finances during the holidays and how Express Cash Flow, a leading commission advance company, can be an invaluable resource.

Understanding Seasonal Market Fluctuations
Real estate markets often see fluctuations during the holidays. It’s crucial to understand these trends in your area. Typically, the market slows down, but this can also be a time for dedicated agents to capitalize on less competition. Stay informed about your local market trends and adjust your strategies accordingly.

Budgeting for the Holidays

  1. Create a Detailed Budget: Start by creating a detailed budget for the holiday season. This should include both personal and professional expenses.
  2. Set Aside Savings: If possible, set aside a portion of your commissions in the months leading up to the holidays to cover anticipated extra expenses.
  3. Monitor Spending: Keep a close eye on your spending. Small holiday expenses can add up quickly.

Diversifying Income Streams
The holiday season is an excellent time to explore additional income streams. Consider rental properties, real estate investments, or even part-time consulting. Diversification can provide financial stability during slower periods.

Networking and Community Involvement

  1. Attend Local Events: The holidays offer numerous networking opportunities. Attend local events to meet potential clients and build your network.
  2. Volunteer: Volunteering can be a way to give back to the community while raising your profile.

Leveraging Technology:
Use technology to stay efficient and reachable. Virtual tours, online meetings, and digital marketing can keep your business active even when people are busy with holiday preparations.

Managing Cash Flow with Express Cash Flow:

  1. Understanding Commission Advances: Express Cash Flow provides commission advances, allowing you to receive funds from pending sales immediately. This can be a lifesaver during the cash-strapped holiday season.
  2. How It Works: Apply for an advance on your pending commission, get approved, and receive funds quickly. This can help cover expenses or invest in marketing efforts.
  3. Benefits: The primary benefit is improved cash flow. It can also reduce stress and provide financial flexibility.

Planning for the New Year

  1. Set Goals: The end of the year is a perfect time to set goals for the next year. Reflect on your successes and areas for improvement.
  2. Develop a Marketing Plan: Plan your marketing strategy for the upcoming year. Consider how you’ll adapt to changing market conditions.
  3. Educational Opportunities: Use quieter times to enhance your skills through online courses or certifications.

The holiday season doesn’t have to be a source of financial stress for real estate agents. By understanding market trends, budgeting carefully, diversifying income, and leveraging services like Express Cash Flow, you can enjoy a successful and profitable holiday season. Remember, planning and foresight are key to navigating this festive but challenging time of the year.

Express Cash Flow is committed to supporting real estate agents in their professional journey, especially during the holiday season. With our commission advance services, we offer a practical solution to managing your finances effectively. Happy holidays and here’s to a prosperous new year!


Home Staging for the Holidays: A Guide for Real Estate Agents

Unlocking the Magic of the Season in Every Listing


As the holiday season approaches, real estate agents face a unique opportunity to make their listings stand out. Home staging, especially during the holidays, can transform a property into a welcoming, festive haven that potential buyers can envision as their future home. In this blog post, we’ll explore tips and strategies for effective holiday home staging that captures the magic of the season while keeping the appeal universal.

1. Embrace a Neutral Palette:

While traditional holiday colors are beautiful, remember not all buyers celebrate the same holidays. Opt for a neutral winter theme with subtle touches of reds, greens, or golds. Use simple decorations like white lights and greenery to evoke a warm, festive feel without overwhelming the senses.

2. Highlight Natural Features:

Use the holiday decor to accentuate the home’s best features. A garland draped over a fireplace mantel can draw attention to this cozy feature, while a tastefully decorated tree can demonstrate the potential of a spacious living room.

3. Keep It Cozy and Bright:

The holidays are synonymous with warmth and comfort. Ensure the home is well-lit, especially with shorter daylight hours. Soft throws, plush cushions, and a light scent of pine or cinnamon can create a welcoming atmosphere.

4. Don’t Overdo It:

While it’s tempting to go all out with holiday decorations, less is often more in home staging. Keep decorations minimal to ensure the space doesn’t feel cluttered. The goal is to complement the home’s character, not overshadow it.

5. Create a Sense of Tradition:

A beautifully set dining table can evoke images of holiday feasts and family gatherings. Use elegant, simple table settings to create a scene where buyers can imagine hosting their own celebrations.

6. Remember Curb Appeal:

First impressions matter. A simple wreath on the front door or white lights along the roofline can make the property inviting from the first glance, without being too personalized or overbearing.

7. Focus on the Fireplace:

If the home has a fireplace, make it a focal point. A tasteful display of candles or a simple garland can highlight this feature as a cozy gathering spot on chilly evenings.

8. Use High-Quality Photos for Online Listings:

Ensure that the staging translates well into photographs for online listings. Good lighting and professional photography can capture the festive ambiance, making the listing stand out in online searches.


Holiday home staging, when done right, can be a powerful tool in a real estate agent’s arsenal. It’s about striking the right balance between festive cheer and elegant simplicity. Remember, the goal is to help potential buyers see themselves building their own holiday memories in the space. By following these tips, you can create a captivating, inviting atmosphere in your listings that resonates with the warmth and joy of the season.

Happy Holidays and Happy Selling!

What Is A Commission Advance?

Key Takeaways:

  • Commission advance is getting the commission before closing
  • Commission advance is not a loan
  • It is commonly used to bridge the gap between closings
  • The price of commission advance varies wildly depending on how companies’ policy

1. Commission Advance definition:

By definition, a commission advance is a financial service whereby you sell a portion of a pending commission for a fee. In exchange, funds are advanced to you before closing. It’s not a loan. It’s simply access to the commission you’ve earned without the wait! Get your commission whenever you want.

2. Win-Win Pricing:

The fine print may vary, but the essence of each is the same. The first step is getting a property under contracts. Once you’ve done that, congrats, you are now potentially eligible for an advance. So let’s consider how the pricing works.

The one-size-fits-all model: 

Each company has different policy. Many have opted for a simple fixed pricing structure to avoid headaches. The telltale sign is a pricing slider on their website. This has both pros and cons. At first glance, while it seems to provide an easy estimate of how much a commission advance will cost, this one-size-fits-all pricing model leaves no room for negotiation. In fact, top producers can easily enjoy a much lower rates if their productions history is taken into the account. What if a realtor is just having a rough quarter and cannot fit in the pricing model? He/she will be denied immediately.

The Custom Pricing Model: 

Every transaction is different, so why have a one-size-fits-all? Custom pricing model use a risk-based pricing plan to review each commission advance request. That means the production history, details of the transaction, and closing dates, as well as other verifications are taken into consideration to create a tailored solution for that one advance. The question is: why do a lot of work just for a simple advance? It’s simple: once you look deeper into the case, the underwriter can see the agent as a real estate professional, not just a number in a spreadsheet. By adding the human factor to the mix, this model can approve more cases and also lower the rates significantly for top producers. It’s simple, the lower the risk, the better the rates.

Express Cash Flow is one fine example of custom pricing model. Once an application is submitted, ECF proprietary AI Modeling analyzes over 200 attributes to create a custom risk profile for your unique situation. Then, an underwriter will thoroughly assess the case to create a custom pricing model tailored to your needs. Some of the primary attributes to look at are:

  • Your production history
  • Details of the transaction
  • Expected closing date
  • Verification & review of all publicly available information

The result is up to 30% reduction in advance fee and a faster processing time since everything is automate in the beginning and the underwriter only need to review the information at the end.


3. Get your money faster!

If you are approved, you’ll be presented with an offer of an advance on your commission. You will receive the commission advance agreement via DocuSign that you and your broker will sign (or by you, if you are your own broker). You will be funded within hours via wire and not ACH. A good commission advance company will be able to fund you the same day. You should expect simple paper work, no credit checks, and most importantly, no massive stack of loan documents to sign. At Express Cash Flow, the entire process from Application to Funding can take place within 4 hours. There are no partial holdbacks like some other companies.


4. Paying back the advance:

Technically, when you get funded, everything is taken care for you. The advance is automatically paid back when the escrow or settlement company closes. The amount is equal to the advance plus the fee. That means you never pay anything out of pocket. You get the much-needed liquidity to grow your business and thrive.


5. What if escrow falls out?

It is nothing to worry about. While doing market research for commission advance, we found out most companies are smart enough to give the advance to those who are likely to close the deal. After all, advance companies want to make money and avoid any foreseeable risk. At Express Cash Flow, after more than $3 billion property worth of advance, we have a 99.5% closing rate of all advances. Our AI underwriting model optimize the process and reduces the risk of deals falling through. Even if the deal falls, you can simply switch your advance to another escrow for a minimal fee (no hefty penalties or immediate payback requirements).

6. How much of my commission can I advance?

You can advance up to 75% of your *net* commission. Your net commission is determined by calculating the total gross commission, and then removing the portion due your broker, plus any office, TC, franchise or referral fees, i.e. the money that would be going into your pocket. So if you have a $500K transaction with a 2.5% commission and are on an 80/20 split, your gross commission would be $500K*2.5% or $12,500. Your net commission would be $12,500*80% or $10,000, and we would be able to advance 75% of that ($7,500). You can take less than this if you’d like, but $7,500 would be the maximum advance amount


 7. Is there a minimum advance amount and a minimum fee?

Yes. Statutory guidelines dictate that the minimum advance amount is $2,500, so you’ll need to be earning a net commission of at least $3,000 in order to qualify for an advance. The minimum fee, which usually applies on advances of up to $5,000 for less than 30 days, is $400. Please note that this for every outgoing wire, so if you want $5,000 for 25 days or $2,500 for 2 days, the fee will still be $400. Proper planning can help you get the most efficiency out of our fee structure.


Summary of Benefits of Using Express Cash Flow:

  • Get to 75% of your commission on the same day
  • No credit checks
  • No out of pocket charge
  • No hold-backs, no hidden fee
  • Agent friendly pricing
  • Personalized service

We know you don’t all need a commission advance, but we could all use a little extra cash every now and then, and we hope you think of Express Cash Flow whenever the need arises.

Apply for commission advance today.