Here’s a scenario: you are the broker of a local real estate office and one of your agents comes to you wanting to know about getting a commission advance. You have some options: either a) say no, but that could negatively effect your relationship with the agent, so you think b) offer the service yourself, but that would involve dipping into your own credit lines and in this market, money is tight so you decide to go with option c) refer your agent to one of the many commission advance companies out there…but which one? They are all the same, right? Wrong!
It appears the only similarity between commission advance companies in the United States is that we are all based on the practice of receivables factoring. Beyond that, no two advance companies are the same. As Broker, your biggest concerns over choosing the right company to work with are ones of liability and reputation. Generally speaking, you’re fine signing off on the advance, just as long as neither you nor your Company is ever held liable to repay it if the sale falls through. Secondly, you want to know the Company you’re working with sees you, the Broker, as the rightful owner of the commission and therefore requires your approval prior to funding. Right now in the marketplace, eCommission is the only commission advance company that works this way.