As a real estate agent, closing sales may take time and leave an interim between your efforts and any eventual compensation you receive. Commission advances provide financial flexibility that helps real estate agents build their business.

Applying for a commission advance requires providing information about the sale with an advance company, including sales price, net commission amount and expected closing date. They then calculate how much of your upcoming commission they can advance (up to 75% in some cases), with any remaining balance paid out when your transaction closes minus fees and any applicable interest charges. Unlike traditional loans which require credit checks or collateral to qualify, commission advances provide more accessible financing solutions for realtors across their careers.

Commission advances can be used to cover expenses that arise with real estate brokerage, such as marketing and advertising expenses. They can also cover transportation costs that add up quickly for agents touring homes for clients; and ongoing licensing or association fees which are usually tax deductible throughout the year.

Commission advances can also be an excellent way of covering quarterly estimated taxes owed as independent contractors, which include Social Security and Medicare taxes due every three months. By having immediate access to some of your earned commission, a commission advance provides immediate help with meeting this expense.

Commission advances can also be used to cover industry and local real estate association fees that may be tax-deductible expenses, including state and local real estate boards fees, Multiple Listing Service dues and membership dues to the National Association of Realtors(r).

If you’re ready to experience the freedom of commission advances, make sure you select a provider with competitive rates and clear terms and conditions. Experienced providers should offer tailor-made solutions tailored specifically to each realtor.

Once you’ve chosen a provider, the application process should be fast and straightforward. If approved, funds could arrive as quickly as 24 hours or less! Plus, top providers offer flexible repayment plans tailored specifically for your budget; providing security while building up your real estate business.