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4 Competitive Benefits of Real Estate Commission Advances

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The waiting period for real estate commissions can break a lot of businesses. Without sufficient cash flow, real estate is a tough industry for building a stable business. This blog post looks at four reasons why you should take advantage of real estate commission advances!

1. Cash Flow Makes It Easy For Your Business To Grow

Positive cash flow is necessary to help your business grow. Cash is important because you need it’s liquidity to invest in the things that allow your business to run. Without positive cash flow, you’ll find it difficult to pay employees, rent and other necessary operations expenses. When you have a high cash flow, you can use the excess profits to invest in things such as marketing to make your business better. Positive cash flow allows you to invest in the future of your business.

One of the disadvantages of working in the real estate industry is the long delays between selling a house and getting paid your commission. Waiting for deals to close and papers to be finalized can be the difference between being able to continue your business or having to shut down. Taking advantage of a real estate commission advance is an excellent way to ensure your business always has positive cash flow.

2. Unlike Venture Capital, You Retain Control Of Your Company

Real estate business owners desperate for capital often turn to venture capital firms. Deciding to pursue venture capital is never as easy as it seems. The venture is short for adventure which is what you’ll be on trying to find the right investor to work with your company. While you may gain access to capital, it’s usually at the price of losing your vision for your company and your controlling interest. Using real estate commission advances is an excellent way to retain control of your company while having the financial flexibility to invest in your growth.

3. Commission Advances Reduce Your Dependence On Debt

It’s far too easy to become reliant on credit while waiting months for your real estate commissions to clear. It’s very common for real estate business owners to accumulate tons of debt just trying to keep their business open. If you compare the fee on a real estate commission advances to the interest fees on credit cards, you’ll see there is a ton of opportunity to save money by using advances. Using advances also creates a healthy financial environment by making your company less reliant on debt. Real estate agents that run their own business need something to help bridge the gap between commission deposits. Real estate commission advances are a cost-effective way to keep your business in positive the black.

4. Allows You To Invest In Other Areas Of Your Business

Deciding to navigate the period between commission deposits on your own is a double edge sword. Not only do you have to save money but you need to find a way to market yourself otherwise your business will never grow. Using commission advances to your advantage allows you to invest some money in helping your business grow. Real estate competition is tough, so a well thought out marketing plan is necessary. Generally, real estate agents can’t afford marketing while waiting to be paid but using commission advances is a cost-effective solution to a common industry problem.

All in all, it’s not necessary for your business to suffer for months in between commission deposits. Real estate commission advances are a cost-effective financial tool you can use to ensure positive cash flow in your company. Taking advantage of commission advances allows you to use your profits to grow your business. Instead of relying on debt or giving up control of your company for money, try a commission advance!

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