Commission Express reveals the main advantages of relying on commission advance, rather than personal loan or line of credit to free up some cash for a real estate business.
Fairfax, VA -- (ReleaseWire) -- 06/22/2016 --Commission Express is pleased to see that Washington Post's latest forecast for the year 2016 sees a continued rise in house prices, coupled with lower interest rates for first-time home buyers. This has meant that real estate agents have had only to gain by focusing all their efforts, and seizing their opportunities to sell, spurred by the momentum of this macroeconomic trend.
So, business is booming. But that doesn't mean that realtors have reaped the benefits just yet. All estate agents know that gaining access to their commission can take months, and that may be longer than some are prepared to wait for their hard-earned money. From the time a transaction is settled, and up until the moment it's closed, real estate agents may have operating expenses that outweigh their available liquidity. At this point, Commission Express recommends that realtors weigh their options carefully.
Personal loans can be convenient, but the lender charges interest on the entire amount borrowed, whether the borrower uses the money, or not. They don't require collateral, which makes them available to just about anyone.
A line of credit gives borrowers a source of funds to tap into at their discretion, paying interest only on what they draw out. But it comes with a catch. The lender sets out a maximum limit, and the borrower can't go beyond that. The most common types of line of credit are the credit card and home equity, both of which are readily available and tend to make borrowers use up more money than they really need. Depending on the state of the economy, this may also not be the optimum alternative for those who prefer to pay the lender back fixed amounts consistently, because the interest rate is usually variable. Still, the interest rate tends to be smaller than what banks charge for personal loans.
About Commission Express
Commission Express allows realtors to use their own money, instead. It can take months for funds to come in after a contract is ratified, but a commission advance can be cleared in a matter of hours. Also, the value of the advance can be decided between the realtor and Commission Express, and it can be part or all of the commission earned by the real estate agent. The realtor receives the agreed amount, while lender is reimbursed at settlement.
If you would like to know more, please visit this web address: www.commissionexpress.com.