Commission Advance

Here's how it works :

1. Real Factor 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 Real Factor we recognized the Real Estate industry’s need for effective short term financing. The solution is Real Factor, 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.

It’s 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.

Real Factor rates are very reasonable, calculated at a modest fee per Thousand Dollars per day.

Invoice Discounting Benefits : 1. Real Estate Security is not a Standard Requirement. 2. Funds within 24 Hours of invoicing. 3. Maximises Cash Flow. 4. Increase purchasing power, improves supplier relationships. 5. Can enable early payment discounts from suppliers. 6. Allows you to optimise stock levels. 7. Achieves growth without the need to increase capital or dilute equity.

Here's how it works : The client completes work for their customer. The client posts out the original invoices to the customer. The client submits details of the invoice batches to Real Factor Real Factor adds the total of the invoices to the ledger Real Factor funds the invoices at the agreed percentages The client chases payment of the invoices and pays the proceeds into a nominated account. The unfunded percentage of the invoice is paid across to the client less fees.