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Debunking the Myth: Real Estate Commission Advances Are Not Loans

Realtor standing in front of home with open house sign.

In the real estate world, cash is king–not only for buyers and sellers, but for your business too.

Real estate agents and brokers rely on a steady cash flow for a variety of reasons–paying bills on time, paying employees, marketing and advertising, and operational costs.

Ideally, real estate agents would close a sale every month on the dot, their commission delivered to their bank account immediately. However, every transaction is different, and the timing of each sales cycle can vary widely. For those times when you are experiencing a lag in cash flow due to to a pending transaction, a real estate commission advance can help by converting a portion of future commissions into upfront cash.

Today we’re dispelling one of the most commonly asked questions:

Are real estate commission advances loans?

What a Real Estate Commission Advance IS

Let’s start with a basic definition of what a real estate commission advance is: a financial service that allows a real estate agent or broker to sell a portion of their pending commission for a fee. In exchange, they receive a portion of their commission funds before closing.

When cash flow is stalled due to a pending transaction, a real estate commission advance allows real estate agents and brokers to stay on top of bills and other ongoing expenses.

Commission advances are simply access to earned commission prior to the settlement date. Whether you are a real estate agent or broker, commission advances allow you and your company to control the necessary cash flow to operate successfully.

What a Real Estate Commission Advance IS NOT

Now that you have a better understanding of what a commission advance is, here’s what it is NOT:

Real estate commission advances are not loans, do not require a credit check, and do not need to be repaid. There are no upfront fees.

Think of it as selling a portion of your commission: In exchange for a flat fee (to be paid once your sale closes), you gain access to your already-earned commission prior to closing.

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 payments or upfront fees.

Learn More About Real Estate Commission Advances

Curious to learn more about real estate commission advances?

Read our Essential Guide to Real Estate Commission Advances, which provides a more detailed explanation of how real estate commission advances work. Be sure to follow the Accel Advance blog to stay up-to-date with the latest developments in the real estate commission advance space.

The Accel Commission Advance Difference

At Accel Commission Advance, we provide flexible cash flow solutions to real estate professionals to help them meet their financial needs. Our friendly staff of funding experts guides each client from application to advance.

If you think our real estate commission advance funding solutions could be the right fit for you, give one of our specialists a call today at 267-534-7611. Or to apply online, simply CLICK HERE to submit an application.