Commission Advances for Real Estate Brokers

Everything Real Estate Brokers Need to Know about Commission Advances

Revenue for real estate brokers tends to vary a lot throughout the year, which can make it a challenge to manage cash flow for real estate brokers. A real estate commission advance for brokers can help brokers manage cash flow by covering overhead like bills and rent, as well as paying salaries and paying for advertising and marketing.

Savvy real estate brokers who want to grow their businesses know the importance of having multiple streams of capital financing available to them. Real Estate Commission Advances for brokers is a fast, flexible, reliable method for financing the future growth of your brokerage.

peaks and troughs of cash flow for real estate brokers

“In the real estate business there are peaks and troughs of cash flow. If you are in a trough, you may need to realize fees in advance of the closing.”

What is a Real Estate Commission Advance for Brokers?

A commission advance for real estate brokers is a financial service that allows a real estate broker (or agents) to sell a portion of their pending commission for a fee. In exchange, they receive a portion of their commission funds within 48 hours (generally) and the rest of what they are owed at closing.

What is the Difference Between a Real Estate Commission Advance and a Bank Loan?

A real estate commission advance is not a loan. You don’t have monthly payments to make and credit checks are not used in the underwriting process.

Unlike a bank loan which accrues daily and monthly interest, commission advance companies purchase a piece of your commission for a standardized, flat fee. When your sale closes, repayment of the advance happens automatically: there are no monthly payment to make.

Why not take out a bank loan?

As a real estate broker, you will want to develop strong relationships with banks. Banks control a lot of the worlds wealth and having a strong relationship with at least one (and preferably more than one) bank will be crucial to your long-term success. But bank loans are not always easy to get, fast to procure, or available if banks begin tightening lending standards.

Also, banks are not often known for their speed. It can take seven days or longer to approve and disburse payment, but the application process for a commission advance is quick and easy to submit online and can be approved and even funded same day. Within 48 hours (generally), your application can be processed, and funds deposited into your bank account by wire transfer or eCheck if you prefer to avoid the wire transfer fee.

It is important for real estate brokers who are on a track for growth maintain multiple financing options including banks, private equity, and real estate commission advance companies.

Credit checks are not necessary for commission advances

Credit checks are another potential hurdle that real estate brokers might face when applying for a bank loan or line of credit. If your debt-to-equity ratio is high (because you have taken out a lot of loans already), banks may not be willing to extend you the amount of credit you require to run your business.

Real estate commission advance companies don’t take credit score into account in their underwriting process. In lieu of a credit check, most commission advance firms conduct a background check which tells them if someone has outstanding liens or historical judgments.

When should I take out an advance on a real estate commission?

Brokers can take out a commission advance anytime they need early access to funds for business reasons.

Here’s a common real-world example: A brokerage that generally handles 120 transactions in a year, on average, hits a slow period where several of their agents haven’t closed on any deals for a couple of months which reduces their inbound cash flow.

The problem is, ongoing expenses and bills still need to be paid, and your bank account might be running low while you are waiting on some closings to go through for you or your agents. Using a real estate commission advance will allow you to get some of your money now to pay bills and expenses, and then you can collect the rest at closing.

Sometimes brokers have unexpected one-time expenses that exceed any savings they have (i.e., buy a new office building, a fix and flip). In these situations, an advance on commissions could help them receive accelerated access to funds they are owed at closing.

Another Example: A broker, knowing that spring and summertime are their peak revenue earning seasons, may want to start ramping up their marketing and advertising efforts a few months in advance to make sure all their agents are booked up. If that brokerage is waiting on several closings, they can take out a commission advance to finance that marketing effort to keep their agents busy all summer and maximize outputs.

Why Use a Real Estate Commission Advance?

A Real Estate Commission Advance from Accel Real Estate Commission Advance enables real estate brokers in the United States to get their money right away instead of waiting for closing which can take anywhere from thirty days to six months. And while you wait, you do not have access to that money for marketing, doing other deals, paying employees, paying contractors, investing in new projects, and growing your business.

Lost time is lost money. Lost time is missed opportunities. Big businesses never hesitate to use “other people’s money” to finance their growth. They take out loans, sell debt, sell shares of their ownership, factor their receivables, and take out futures contracts to hedge against inflation.

But too often small businesses stay small because they think small. They launch their next marketing campaign after they get paid. They don’t take on a new deal until they get paid from the last one. They try to finance their growth with their own money, and as a result, they move much slower. They are timid about business finance. They don’t take risks, and they miss opportunities.

Large companies never hesitate to use “other people’s money” to finance their growth. They borrow money, sell debt in the form of bonds, sell shares, and take futures positions to hedge against price fluctuations. Why should small businesses operate differently?

Every day you wait to do your next deal due to lack of funds will set you back because of the time-value of money. You never get that time back. Using a real estate commission advance is a great way to finance future growth and avoid missing opportunities.

How Does a Real Estate Commission Advance Work?

You sell a portion of a pending commission to us for a fee. You receive your advance on your commission, and we are paid what we are owed at closing by the party in charge of the closing.

About Real Estate Commission Advances For Brokers from Accel Real Estate Commission Advance

Accel Real Estate Commission Advance provides flexible financial options to help real estate professionals meet their cash flow needs.

Our priority is to see your real estate business grow by advancing the capital you need when you need it. We are wholeheartedly committed to identifying and meeting the needs of our clients, by developing financial products that not only meet but exceed their expectations.

Frequently Asked Questions About Commission Advance for Brokers

Question: What are the requirements for taking out a real estate commission advance for brokers?

Answer: Brokers need to have been a sponsoring broker for at least 12 months and have at least 5 agents on their team. These are the minimum requirements.

Question: What percentage per deal will you fund?

Answer: For their first advance with us, brokers can fund up to $5,000. Brokers can fund up to 60% of their commission after they have established a relationship with Accel.

QuestionIs there a maximum number of advances they can have out?

Answer: There is no maximum number, but the maximum amount is $5,000 for first time clients, and for clients who have an established relationship, the maximum amount is $15,000 for brokers. This can be from one advance or across multiple advances, pending they’ve met all other qualifications for funding on any additional advances.

Question: What information does a real estate broker need to provide you with (if different than a real estate agent commission advance)?


  • Production history for the broker and the brokerage.
  • Information on additional pending properties or exclusive listings for both the broker independently and the brokerage (in some cases).

Question: How are the fees determined?

Answer: Fees are set based on numerous factors, and each case is assessed individually. Accel offers reduced fees as a broker completes more advances with them and establishes a consistent track record. Accel offers competitive fees as low as 8 percent.

Question: How does a commission advance work?

Answer: Advances will be delivered to your bank account via a wire transfer. Accel gets you paid fast. Especially brokers that have already done business with Accel.

Repayment of the advance happens automatically when your sale closes. The settlement company will receive a commission disbursement authorization signed by your broker instructing them to send a portion of your commission directly to Accel on your closing date.

Every transaction is different, and the timing of each sales cycle can vary widely depending on how long it takes to get an inspection and lender in place, among many other factors. Accel Commission Advance provides flexible cash flow solutions to brokers to help them meet their financial needs.

The Accel Commission Advance Difference

Accel’s friendly staff guides each client from filling out the application all the way through funding the advance. If you think their real estate commission advance solution could be the right fit for you, please call one of their advance specialists at 267-769-0747. Or to apply online, simply click the button below to submit an application.

Ready To Apply for an Advance?