What You Should Know About Commission Advances
In an ideal world, sales commissions are paid monthly. But in the real estate industry, it is common for agents to have gaps between sales. These gaps are either because of clusters in sales or a long contract closing process. Regardless of the reason, these gaps often become a challenge for real estate agents because bills do not sit around and wait.
Enter commission advances:
What is a commission advance, exactly? Basically, it is just that, a commission advance. Processing commissions take time, especially if a contract from a sale takes a while to close. A commission advance vendor gives you the ability to access your commission ahead of the closing. It’s almost like a loan in the sense that you have to pay them back once you finally get your commission, but instead of an interest rate, they have fees for the advances that you make.
Commission advances aren’t for everyone, but if you deem it a necessity to keep your business running, then there are some things that you need to consider. Doing a Google search for commission advance vendors is fine, but it would be wise to prepare a spreadsheet so you can easily compare the vendors that you will find.
Top 5 Things to Consider When Looking for a Commission Advance Vendor:
Online: Almost everyone is online these days, and your commission advance vendor should be no different. Getting access to your commission should be a hassle free experience.
Limits: Some commission advance vendors have limits to the size of the commission that will be advanced. Check for maximums.
Fees: Look for a vendor with reasonable fees. You want to get a commission advance, and not lose all your commission in the process. Also, make sure they are completely transparent with the fees that they will charge you. Hidden charges are a big no-no.
Processing Time: The reason you’re getting a commission advance is because you need your commission in advance. Look for a vendor that will allow you to access your commission in 24 hours or less.
Reviews: While it is good to browse through reviews on your prospective vendors’ website, it is an even better idea to look at third party review sites. This will give you a better picture of the vendors’ performance and whether their customers are mostly satisfied with their services or not.
Once you have all the information on a spreadsheet, you’ll be able to compare their pros and cons and you can choose based on which one you feel will benefit you and your business the most.