Here is some information to help you separate truth from falsehood.
Successful Agents Do Not Need A Commission Advance
Nothing could be further from the truth. Even the most successful agents who have enough sales may take out advance commissions from time to time.
Seeking an advance does not mean that you have financial difficulties. Commission advances are designed to help real estate professionals to steady cash flow so they can keep their businesses running and growing.
You Will Be In Trouble If A Deal Falls Through
The real estate business can be unpredictable. Most established advanced commission service providers understand that there are times when sales do not materialize. As such, it does not necessarily mean that you will be in trouble if you have received an advance.
Depending on the commission advance company you are working with, you can agree on a suitable repayment plan. Oftentimes, this will involve paying back the money you owe from a future commission. The company may also charge a small extension fee to make up for the delay in repayment.
Commission Advance Is Expensive
As a real estate business owner, you will want to consider the cost of borrowing before getting an advance. This is why the false notion that advance commission fees are exorbitant has made some agents shy away from seeking this service.
The truth is that fees for commission advances are largely reasonable. Generally, the fee involved will depend on the amount of time for repayment and the size of the advance.
A Commission Advance Can Damage Your Credit Score
This is a common commission advance myth. Considering that a hurt credit score can have a negative impact on your financial future, the misconception can discourage you from getting an advance on your commissions.
However, a commission advance is not a loan. It is simply a financial service that lets you access your earned commission prior to the settlement date. As such, getting an advance will not hurt your credit score. On the contrary, it will help to improve your cash flow, thereby enabling you to make business payments on time.
It Is Always Better to Get a Commission Advance From an in-house Broker
While some brokers allow their agents to take out an advance on their commissions, there are times when working with a third party makes more sense.
Before making a decision, be sure to do your homework. Look at the fees and interest charged, consider what will happen if the sale falls through and think about whether you are required to draw out a contract with the broker.
Your Customers Will Know if You Take a Commission Advance
In the real estate business, so much depends on reputation. This is why you will want to protect your reputation at all costs. The good news is that no one has to know when you take out a commission advance.
When you work with a reputable company, you can apply securely online and get your cash with complete confidentiality. Both your personal information and privacy will stay intact.
Getting a Commission Advance Is Not a Smart Financial Decision
A commission advance is a flexible financial solution that provides a quick and convenient way for agents to meet their financial needs. Also, the advance money obtained can be used for various purposes, such as education, investing, marketing and paying business expenses.
Interested in taking out a real estate commission advance? Make sure you work with a reputable company. Commission Express National has a fast and simple online application process to help you convert your pending commissions into cash. Contact us today to find out more.