Published on February 16th, 2018 | by Guest0
Identify the Best Financial Company for Advances on Real Estate Commissions with These Tips
Real estate agents have to deal with fluctuating cash flows given the nature of real estate commissions. You have to wait for the deal to close fully before receiving your commission payment. In the mean time, you still have to meet other financial obligations with the cash you have. You may have to wait up to 120 days in some instances.
If you find yourself in a cash flow scrunch, you need to find alternative options to get the money you need to pay your bills. You can get help in the form of commission advance for realtors. This allows you to receive money against the commission, with the amount less the interest you are to pay. After the commission matures, the financial institution giving the advance will recover the amount advanced plus the interest.
This option offers a timely solution in many instances. It helps you get the money you need for advertising, marketing and supporting other business and personal. The experience you will have with the financial institution is important as it will dictate future relations. You need to take your time when selecting the company you will get the advance from.
Researching allows you to find out more about the company before you engage its services. The research should cover the services offered and most importantly the terms of service. This allows you to set the expectations of the service you will receive. It also pays to check the experience others have had with the company as this is a good indicator of what to expect. Knowing more about the company will help you know whether it is the right fit for you. Many companies will not ask for an advance payment and you should go for such. The terms should of course be favorable as you do not need to pay more than you should for the advance you receive.
Always check the small print
The small print is what gives life to the adage ‘the devil is in the details’. Many people have found themselves paying back hefty amounts that exceed the commission they were to receive in the first place. Some companies will charge heavy fines and other hidden costs that will leave you regretting your choice. The rule of the thumb is to go for companies that are upfront about their rates and the amounts that are due to them. You should go for the company offering the lowest possible charges.
Only use this as an emergency resort
This will protect your business from unnecessary losses. Do not take advances on commissions maturing in a short time. Since you will need to pay for the interest, you will suffer heavy losses if you go for this option each time you close a contract. Let the advance be for emergencies only where you need to have the cash at hand. This gives you ready cash but you still need to be disciplined in how you use it.