Teachergive Sale 2023

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The wait is over – real estate agents can now prop up their finances with commission advance

>> Jan 17, 2018

Receiving commission upfront is the dream of any real estate agent because their survival depends on it.  The earnings from the commission are what keeps the business running, and any delay in getting commissions can harm the financial prospects of real estate agents. Now that a special financial arrangement for receiving advance real estate commissions is available, it has provided much relief.  Instead of waiting for deal closure to obtain the commission, real estate agents can monetize the commission almost as soon as they strike the deal. With the facility easily available, real estate agents can concentrate better on the business without having to worry about cash flow problems.  

The wait is over

The financial arrangement is similar to bill discounting that provides an advance against the invoice showing the sales proceeds. You receive the advance against the assurance of payment of commission on the closure of the deal or within 30 days of availing the advance whichever is earlier with a grace period of 15 days (negotiable) from the date of closing for paying back the advance. The financial company scrutinizes the details of the deal and on being satisfied with its credibility offers the real estate agent a sum of money, which is either a part or full amount of the advance subject to some maximum limit fixed by the company. 

Encountering business fluctuations effectively

Unlike any other kind of business, real estate agents can never enter into long-term contracts to assure a continued sale. They have to depend on the demand in the market to seize opportunities for sale, and since the demand keeps fluctuating, the income of real estate agents fluctuates too.  There are times when successive sales happen at close intervals, and again there are times when there are no sales for a few months. The erratic nature of sales puts a lot of pressure on the cash flow that real estate agents can efficiently encounter by availing advance commission.

A shot in the arm

Real estate agents are very happy that at last, they have found some means of financial support that they badly needed.  It is never easy for them to avail the conventional financing arrangements. Financial institutions and banks are skeptical about the volatile real estate market and the uncertainty of income of the agents and do not consider them for loans or any other forms of credit lines. The advance commission has provided good support to real estate agents who can now have more elbow room in arranging finances to take care of the day-to-day activities.

The financial company offering the facility of paying advance commission would charge some fees. If the financial constraint is the reason for seeking an advance commission, then you should look for some companies that collect the fees at closing. Moreover, you can look for a longer grace period of 20 to 30 days so that you can payback once the commission comes in.

The commission advance that comes in handy and provides breathing time for re-arranging finances is a significant development in the real estate industry.

1 komentar:

kara January 18, 2018 at 10:48 AM  
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