Commission Advance :
Here's how it works :
1. CommFact advances you a percentage of your
commission before closing, typically 100%.
2. A fee is deducted from that
percentage, based on the number of days remaining
until the scheduled closing date.
3. If the commission amount and
closing date don 't change, you receive the balance
at closing. If closing is delayed, additional
fees may be deducted from the amount reserved.
All companies expect your broker
in charge too verify contracts, and participate
in different ways. Brokers (Principals) are not
responsible for paying the advance if your closing
doesn 't happen, but they are required to withhold
future commissions if you do not repay the funds.
If the deal falls apart, most plans allow you
to transfer your advance, attaching it to another
contract.
Your typical costs range from 0.166% - 0.2% per
day and would have a minimum fee.
All too often we witness a team
performing at its peak for months on end, only
to see it crash into obscurity seemingly overnight.
If sales were good and commissions healthy how
could there have been a problem?
Cash flow or the lack of it is
the killer. Its caused the ruin of far to many Real Estate offices that, in
every other aspect, had great prospects and a
clean bill of health. Companies can, and do, simply
starve to death while they wait for commissions to come in.
At CommFact we recognized
the Real Estate industrys need for effective short
term financing. The solution is CommFact, and
it turns commissions owing into cash within 24
hours, with none of the charges, liens and red
tape that banks traditionally demand.
The essence of cash flow funding is simple, it
represents the sale of invoices for completed
services, in this case, commissions owing, to
a third party, at a discount on the face value.
Its not a LOAN so the credit
rating of the agent is unaffected, and there are
no long-term agreements or balance sheet compromises.
Having commissions owing converted
to cash within 24 hours is a benefit that can
't be overstated.
CommFact rates are very reasonable, calculated
at a modest fee per Thousand Dollars per day. |
