Whether a real estate broker can survive in business depends on how quickly he or she can access the commission earning. There are two stages of commission-earning – the first is confirming the commission at the time of signing the property deal and the second is when the money comes to the broker. Since the transaction of property involves a series of commercial and legal activities, it takes considerable time to close a deal. On an average, anything between a month and a half and three months is the average time for deal closure while there are occasions when it can take much longer. Naturally, brokers have to wait until the deal closes to get the money in hand. The longer time it takes for the commission to cash out higher is the stress on brokers.
To overcome the stress, brokers can no fall back upon real estate commission advance Ontario, which is a special arrangement, offered by some financial companies serving the real estate sector that comes as welcome relief. The arrangement has provided a financial lifeline to brokers because this is the first time that they can obtain some financial assistance that was completely lacking earlier. Brokers had to rely on personal finances and to borrow sources within their known circle of well-wishers to arrange for finances. It is normal for brokers to seek funds often because of the prolonged cycle of monetizing commissions and the apathy of traditional financiers in extending help to them.
Get The Money Without Waiting
There used to be a time when brokers used to dream how nice it would be if they got the commission paid as soon as they sign a deal. Today, the dream is a reality, thanks to the advance commission that has made it possible. The financial company that provides the advance commission recognizes the document related to the deal as a commitment for payment of commission and in exchange provides the commission amount as claimed by the broker.
The broker can claim a major portion of the commission but not the full amount and receive almost instant cash with the commitment of paying it back within a month. A grace period of 15 days is also applicable in some cases for repayment. The arrangement provides the elbow room that brokers can use effectively to manage their finances better and keep the business up and running smoothly. The dreaded waiting time for earning cash from commission does not bother brokers anymore.
Preparing For The Bad Times
The specialty of real estate business is that you have to stay prepared to go through lean periods when you earn very little or almost nothing. Again, there would be times when your hands are full of deals that you had never foreseen. The fluctuations of business are so much that it becomes extremely difficult to plan for finances and manage it. The unpredictable nature of the market puts too much stress on brokers who have to live out on their earning of a few months and take care of the business around the year.
Now that the advance commission is available, brokers can reduce the gap in payment, get the cash quickly and spread the earnings across longer tenure that helps to tide over the lean months. The financial arrangement helps to mitigate the effects of the erratic behavior of the real estate market and provides financial stability.
A Stitch In Time
A stitch in time saves nine, so goes the saying and there can be nothing better than an advance commission to prove the truth underlying it. Having quick availability of cash helps to plug any gap in business finance and provides a strong platform for sustaining the business with the promise of growth. Now, brokers do not have to lament for the lack of financial assistance because they can get as much assistance as they want to depend on how aggressively they can strike more deals. More deals mean more commission earning, and by spacing out the deals, it is possible to maintain continuity of earning by overcoming the uncertainties of the market. It is a great way to ensure that you are never in a situation when you have to suffocate for cash.
The business of real estate brokers is cash intensive and getting the cash quickly, perfectly supports the financial needs of the business.
Remember that you have to pay some fees for collecting the cash early but surely, it is much less as compared to the interest that you would have to pay for loans. If you are ready to part away with a small portion of your income and have the ability of pay back the advance within the stipulated time, then there can be nothing better than the arrangement of commission advance.
The time you get to rearrange finances becomes invaluable for your business.