If you are in real estate, you must be aware how long a payment can take especially if you are a broker. Well the good news is that there is a way that you can access your funds more easily, and that is through a commission advance company. The only requirement is that you should have completed your sale and you are good to go. You can access your funds as soon as in 24 hours and that is better than taking a loan as it is money you have earned and you don’t have to pay the interest. There are however many commission advance companies and hence you have to know what to look out for to make sure that you end up with the right company. Some of the factors to consider include:
Every commission advance company normally charges a fee, a discount fee. You should look out to make sure the company does not have any hidden charges as that will basically mean that you will get less money. Hidden fees can come in form of administration fees, minimum fees, application fees, wire fees or reserve holdbacks. You should look out for that so that you don’t get a raw deal.
Mode of operation
A commission advance company should not as you for credit checks rather should be able to give you funding on the basis of contract of sale and a pending commission.
Period of approval
Most of the time you will seek the services of a commission advance company because you are looking for convenience. In this case you should look for a company that has quick approval if possible same day approval. If it takes more than 24 hours to process your application then that may be a sign of a red flag.
For more convenience the company should have a simple application process. The standard mode of application in most companies nowadays is an online application. The ease of the application process may have an influence on how fast you can access funds.
No minimum or maximum
As much as commission advance companies should not have a minimum or a maximum commission that can be advanced, there are those that have. You should be keen to check out so that incase it has a minimum or maximum the amount you want to advance falls in between the bracket. It is however advisable to go for a company that has no minimum or maximum.
The number of deals that can be advanced at a time
Most brokers or real estate agents normally require advancing several deals at the same time. There are some companies that may have limits and this may be inconveniencing especially if you have several deals that you may consider to advance. Normally most well established companies will not impose a limit on the number of deals that can be advanced at the same time. It is therefore important to keep that in mind.