Top 5 Reasons for Real Estate Agents to Consider a Commission Advance

By Anna Kinney, Chief Product Officer at Tongo

Being a commission-based professional can be a challenge, especially when monthly expenses and commission payments don’t line up. As a real estate agent, maintaining a steady cash flow is essential for sustaining your business and covering personal expenses. However, the nature of real estate transactions often means waiting for commissions to come through. This is where commission advances can be a lifeline. But when is the right time to consider getting one? Let's explore some situations where agents should seriously consider a commission advance:

  1. Maintaining Consistent Income: Real estate income can fluctuate, with some months yielding high commissions while others are lean. If you prefer a more consistent income stream to cover your monthly expenses, periodic commission advances can help smooth out these fluctuations and provide financial stability.

  2. Covering Business Expenses: Running a real estate business comes with its fair share of expenses—marketing, advertising, office rent, travel, and more. If you find yourself short on funds to cover these essential business expenses, a commission advance can provide the capital needed to keep your operations running smoothly and continue acquiring new clients.

  3. Personal Financial Needs: Real estate transactions can be unpredictable, and so can personal financial needs. Whether it's unexpected medical bills, home repairs, or other emergencies, a commission advance can help you address these financial challenges without dipping into your savings or resorting to high-interest loans.

  4. Investing in Growth Opportunities: Sometimes, opportunities arise that require immediate capital investment to grow your business. This could be expanding your marketing efforts, attending a real estate conference, or investing in additional training or technology. A commission advance can provide the funds needed to seize these opportunities and propel your business forward.

  5. Avoiding Late Payments: Late payments can disrupt your cash flow further and lead to financial strain. By obtaining a commission advance, you can avoid late payments on bills, mortgages, or other financial obligations, maintaining your credit score and peace of mind.

While commission advances can be a valuable tool for real estate agents, it's essential to consider the terms and conditions carefully. Evaluate the fees, repayment terms, and impact on your future commissions before deciding to proceed. Used judiciously, commission advances can help real estate agents navigate financial challenges and seize growth opportunities in their businesses. 

Tongo offers an innovative type of commission advance that’s a line of credit based on your pending commissions. Agents add pending deals in Tongo to open their available limit. That limit can be accessed as needed by instantly transferring funds to a linked bank account or by swiping the Tongo card. It costs as low as 3% per 30 days. Learn more about Tongo’s commission-backed line of credit and get started at gettongo.com

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Navigating Financial Challenges: Real Estate Agent’s Guide to Success

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eCommission vs. Tongo: Comparing Commission Advance Services for Real Estate Professionals