Advantages of Realtor Commission Advance Financing vs. Bank Business Loans for an Agency
No matter the nature of your business, cash flow makes your agency run smoothly. When you are running a real estate agency, cash flow is even more important because your business is constantly running. Several factors, including advantages of commission loans for realtors or commission advance for realtors as against bank business loans, must be reckoned before making a decision. Here are nine advantages of realtor commission advance financing over bank business loans for your agency.
1.Application Fee Waiver
When you approach a bank for a loan or line of credit, you are charged an application fee right away. Credit card companies are no exception to their annual fees. In contrast, when you apply for commission loans, you do not pay any fee. Realtors have a distinct advantage with commission advance. There are various heads under which a bank may charge application fees, including service, account maintenance, origination, and due diligence. The application fee doesn’t apply at all to the commission loans.
2.The loan is Almost Approved
There are low to nil chances that commission advances are not approved. Your bank loan application may most likely be turned down for several reasons. There are a lot of conditions to meet, even if you do not meet one or two of these, your application is turned down. You do not need to bother about meeting these conditions in case of a commission advance. It is flexible. It is independent of collaterals. No one wants to see your credit score. Approval rates a very high with this type of loan, which may be considered as a tool that lets you retrieve the commission you earned.
Business loans typically take several weeks before getting processed. There are additional hassles of endless paper works. The bank sanctioning your loan would like to see your personal assets, credit cards, comprehensive agency lists, and several different types of papers before your loan is approved or rejected. This process may take several weeks or months with a great degree of uncertainty and losses you may likely incur due to the delay.
In comparison, commission loans can be approved within 24 to 48 hours. The commission advance application for realtors is available online. Look at the application. There are minimal data to be filled in, including your name, address, etc. The entire process can be completed within minutes. As soon as you submit the form, your information is verified, and facts checked. The next day, your advance is approved. You are no longer need to depend on your brokers to make payouts.
4.Access Assets, Not Liabilities
The loan you get from a bank is a liability because it is in the form of long term debt. No matter which form of loan you take, it remains a liability even when it is against some collateral. Commission advance, on the other hand, are altogether different. A commission advance is your asset. You have only taken what belongs to you without having to wait for weeks and months.
5.Credit Score Remains Safe
Your credit score takes a hit each time you apply for credit, whether credit card, line of credit, a personal loan or a business loan. With a commission advance, you are safe from this risk. Your credit score remains unimpacted. There is no change in it. Commission loans for realtors come from their commission, so there is no impact on the individual or business credit score.
6.Poor Credit Score, Not a Challenge
You are unlikely to be approved for a loan or a credit line with a low credit score. The commission advances for realtors do not pose this challenge. Whether your individual or your business credit score is low, no one can stop you from accessing what rightfully belongs to you. Commission advances are factored on real estate commissions.
7.Zero Interest Advance
Lending agencies, including banks, profit from the loan advance made to you. They charge interest and even go on compounding that interest so that you may have to pay back twice or thrice over the initial amount loaned to you. The commission advances for realtors; on the other hand, the cost of financing is almost zero. There are no interests. A nominal one-time fee is all you have to pay.
8.No Need to Pledge
Banks and other lending agencies usually do not want to risk the loans they advance. A standard way to minimize their risk is to make you pledge your collateral against the loan. This is likely to risk your asset should something go wrong. The commission advance for realtors is accessed without having to put collateral at stake. Your commission that you have earned is the collateral.
9.Freedom to Use Your Advance
Bank loans are often purpose-specific. These loans are either for business use or personal use, purchase of a car or a house, or any other purpose specified. The commission advances for realtors are simply advanced, no matter how you want to use them.
There are several sources to apply for commission advance for realtors, but if you are looking for the agency that is fast and easy, quick, rewards you on each advance without any advance limits, Just Commission could be your one-stop destination.