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Advantages of Realtor Commission Advance Financing

Comparing Realtor Commission Advance Financing to Business Loans

Cash flow is the life-blood of every type of business, including real estate agencies. Without adequate cash flow it might be difficult for you to fund payroll or other agency expenses, or the lack of working capital might make it hard for your agency to effectively promote itself to buyers and sellers in order to grow.

Over the course of the life of an agency, there could be many instances where a broker considers the need for real estate agency financing. This need could be met through personal or bank business loans, capital raised from partners or investors, sell-off of assets, use of credit cards or cash advances, and so on.

Each type of financing comes with its own pros and cons. Below you will find information about the benefits realtor commission advance financing offers when compared to other forms of financing, and specifically compared to bank business loan financing.

9 Advantages of Realtor Commission Advance Financing
vs. Bank Business Loans for an Agency

CONSIDERATIONS Commission Advance Bank Loan or Line of Credit
Free to apply X
High approval rate X
Fast process X
Long-term liability X
Impacts credit score X
Low credit score may be a problem X
Compound interest X
Additional collateral required X
Flexible use X


  1. Free to Apply

Your bank may charge an application fee for due diligence, origination fees and service charges to establish your loan or line of credit. Credit cards may also charge annual fees (in addition to interest on unpaid balances). There is no fee to apply for a commission advance, perform due diligence or set up your account, and there are no account maintenance or service fees.

  1. High Approval Rates

Because of its flexibility of use and non-dependence on collateral or credit scores, and because commission advances are simply a tool for unlocking real estate commissions already earned, approval rates are generally very high for this type of financing.

  1. Faster Process

Business loans and lines of credit typically require weeks (or longer) to process. Additionally, there is a significant amount of paperwork to be submitted, including comprehensive lists of agency (and often your personal) assets, bank accounts, credit cards, etc. Even when you believe you have submitted everything, underwriters will often ask for additional documents, explanations or require that you prove you have satisfied previous loans, sold formerly-owned properties, and other items prior to approving (or worse, rejecting!) your business loan application.

By contrast, applying for a commission advance can be completed within a matter of 1-2 business days, or even faster. The online commission advance application can be completed within a few minutes, and will be seen immediately by our team so we can process the request, verify your information and determine the amount of commission advance that might be available to you immediately. Instead of waiting on transactions to close and brokers to make payouts, you can reinvest in your agency right away to:

  • grow more quickly
  • meet payroll or other expenses
  • take care of unexpected costs
  • undertake business-building marketing and advertising initiatives – and more!
  1. No Long-Term Liability

Bank business loans usually come in the form of long-term debt, whether taken as a true business loan or utilization of a business or home equity line of credit. Commission advances are not liabilities. Commission advances unlock assets (commissions earned but not yet received, or “accounts receivable”) without having to wait weeks or months for transactions to close and for brokers to make final payouts.

  1. No Impact to Credit Score

Any time you apply for credit such as a bank business loan (or personal loan), line of credit, credit card, etc., your credit score is impacted. Even having your credit checked can “ding” your business and/or personal credit score.

A commission advance is based on the credit worthiness of the commission being factored, not you or your agency. So there is no impact to your personal or business credit score when you apply for or receive commission advance financing.

  1. Low Credit Score a Non-Issue

Since (your) credit score is a non-consideration, if you have a low business or personal credit score, it won’t impact your ability to factor commissions and receive real estate commission advances.

  1. No Compound Interest

Bank loans, lines of credit and credit cards all entail compounding interest, which adds up and may represent a significant carrying cost over time. With commission advance financing, a one-time fee is your all-in cost of financing.

  1. No Collateral

Banks will nearly always require that you risk some type of business and / or personal collateral when granting a bank business loan, which means you have something material at stake should something unforeseen go awry. With commission advance financing, the commission earned is its own collateral, so you will not be required to  put other collateral at risk to obtain funding.

  1. More Flexibility in Use

Financing available to your agency from bank business loans (or personal loans), lines of credit, investors, etc., often must be used for very specific and limited uses. Conversely, you can use commission advance financing for nearly any type of business purpose, including things like:

Operating Expenses:

  • Lease or mortgage
  • Payroll
  • Office furniture and supplies
  • Bookkeeping, accountant and tax preparation fees
  • Utilities
  • Subscriptions
  • Taxes
  • Computers, equipment and software
  • Unexpected expenses such as the need to make repairs

Advertising and Marketing:

  • Print, digital, TV or radio advertising, directory listings, Zillow, Trulia and similar accounts and ads, social media advertising
  • Event marketing
  • Building a new website refreshing your existing site, maintaining your website with content marketing, updated listings, and so on
  • Graphic design (logo, brand colors, ad copy and layout, etc.)
  • Direct mail marketing, postcards and flyers
  • Email marketing
  • Networking and memberships (Chamber, Rotary or similar groups)
  • Vehicle wraps and clings
  • Agency signage
  • Customer appreciation
  • Branded SWAG and gifts

Professional Expenses

  • Licensing
  • Continuing education
  • Trade shows and conferences
  • Professional memberships
  • Sponsorships
  • Transportation costs including vehicle purchase or lease, repairs, insurance and other expenses

Fast, Secure and Easy

Complete the application process and get approved for commission advances today.

real estate commission advance process

1. Apply online – it’s fast, easy and free.

what is real estate commission factoring?

2. Submit deal details and documentation electronically.

real estate commission financing

3. On approval, receive funds the same or next business day via wire transfer.

commission advances for realtors

4. Speed up cash flow and stay focused on building your business.