The What and the Why of a Commission Advance

You are in business. You may be a broker or a Realtor, you may be part-time, a newly licensed real estate agent, or a well-established professional with your own team. Whatever your current status, you are in business. Real estate businesses succeed and thrive when they can plan ahead and deliver on those plans safely and consistently. As every successful business person knows, the basic need is reliable cash flow. When you always have the cash available to pay bills and salaries, invest in marketing, and to make the most of a good opportunity you are on the road to long-term success.


That is why a safe and reliable commission advance option is so important. You can wait weeks or months from the signed contract to seeing your commission check. Settlements and closings can get delayed, so for whatever reason, expected revenue won’t arrive. Having a reliable source for cash solves those problems. Delays or not, you may want revenue now to keep moving your business forward. You have, within your future settlement or closing, a marketable, accounts receivable asset. A commission advance service enables you to make the most of it.  Now let’s take a look at the ‘How’ of a safe and reliable commission advance.

The How of a Commission Advance

It is a financial service, a factoring facility if you will. You, basically, sell your future commission at a small discount in exchange for an immediate cash receipt. The principle is the same as a store accepting a credit card payment and, instead of waiting for the month-end to receive the money, their merchant services provider pays the store immediately at a discounted rate. The provider then waits for the customer to pay their credit card bill. It’s that simple. So you can choose the commission advance service provider that is right for you, follow these steps:

  1. You and your broker, depending on your status, agree to sell pending commissions to your service provider.
  2. Search for a service company that is right for your circumstances.
  3. As part of your search, you look at ‘the small print.’ Are there processing, holdback, wire transfer, or other fees?
  4. Does your provider have a local office? Local offices are good because it means the team you work with know your market and local real estate rules, regulations, and standards. They will also know the other real estate offices you will co-broke with, their agents, and their track records.
  5. Check out the provider’s track record. How long have they been in business, how much commission have they advanced over the years, etc.
  6. If you have questions, will you speak to a real person who understands the practicalities or to a ‘virtual agent?’
  7. Find out what will happen if a pending contract gets delayed or canceled. Some services offer a grace period to allow for delays, others may not.
  8. Depending on the length of time from now until you expect to receive the commission, you agree to the discount, or merchant service fee to use that phrase. The sooner you are expected to settle, the lower the service fee.
  9. Know how long it will be from selling your commission to receiving the advance.
  10. Does the provider have a minimum or maximum amount it will advance? If so, know the limits.
  11. When you have your answers, sign up, establish your account, set your password, and when you want to arrange an advance, fill in the form, complete the details, and know your advance will arrive.

Some Final Thoughts

It makes sense to explore enough about your future real estate factoring service to be confident and comfortable. Working with a commission advance service such as Commission Express gives you that confidence and comfort. Commission Express was founded by successful Realtors who spent years setting up all the protocols, creating the forms, and configuring the reports to ensure every client receives exactly what they need and want, and gets their advance delivered within 24 hours, managed by a local office.

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