There are two distinct models of business financing – the traditional financing methods based on credit lines and loans and the non-traditional or alternative method of financing comprising of invoice discounting, invoice factoring, etc. Most financing models cater to the majority of businesses but not all. The business of real estate agents does not meet the set criteria for business financing, hence always kept out of the purview of available financing options. The irony is that real estate agents have to experience problems in maintaining smooth cash flow like any other business but do not have any structured financing methods available to them. They too would like have some assured financial support that meets their business needs.
Accepting the fact that the existing financing models do not support the cause of real estate agents, some financial companies have worked out tailor-made solutions for them. Taking into consideration the pain area of real estate agents, the financial companies have realized that the gap between striking a sale deal and earning commission is what bothers the most to real estate agents. The sooner they can receive the commission, which usually takes quite long time, better it is for real estate agents to have the smooth cash flow for the business. The out of the box financial solution consists of paying advance to the agents against any assured sale for which the commission is likely to reach them late.
Any licensed residential real estate agent working with or affiliated with leading real estate companies are eligible for availing real estate commission advance Ontario that provides the perfect solution to the financial problems faced by real estate agents. The contracts that qualify for financial assistance must belong to residential properties only whether it is new construction, condominiums or townhouses and duly signed but wait to close. Unlike any other loans that refer to credit scores, the financial companies that extend the facility to real agents do not check credit scores at all. The contract for sale and the license of the agent are the qualifying documents that the financial companies consider for providing the advance.
Advance amount,fees and disbursement method
The maximum amount of advance payable is $20,000 for a period of 30 days and the financial company offering the arrangement charges some fees that can vary from one company to another. Real estate agents can file online a simple application by providing information about them, the broker involved in the deal and the monetary details of the deal. The financial company underwrites the application in one business day. The agents receive the advance in their checking accounts within an hour of approval. Although the process does not require any registration with the financial company, the brokers attached to the agents have to approve every advance request made by the agent.
The speedy availability of funds without any security or credit checks have provided much relief to real estate agents who can now access easy money to bolster their business.