Traditionally, real estate agents and brokers earn a commission when they produce a buyer ready, willing and able to buy a property. Unfortunately, they do not get paid until settlement occurs, often 30, 60, or 90 days in the future. But the ongoing business expenses that must be paid by agents and brokers in order to operate their real estate businesses can be substantial. The problem they face, as with many small businesses, is that while these expenses tend to become due on a steady monthly basis, the cash flow generated on the income side of the business from commission receivables paid at settlement are far more sporadic. Hence the value to real estate agents and brokers of using a business factor such as COMMISSION EXPRESS to manage their cash flow needs in order to meet their ongoing operating, marketing and business development expenses.
COMMISSION EXPRESS businesses provide commission advances to real estate agents and brokers by purchasing their earned but unsettled commissions (accounts receivable) at a discount. It’s a business to business factoring transaction by which a third party (Real Estate Company or Settlement Agent) is directed under the Uniform Commercial Code to pay Commission Express upon settlement, usually within 30 to 60 days from the purchase date.
The prototype, Commission Express of Northern Virginia, has been operating in the Washington, DC metropolitan area since 1992 and has purchased thousands of accounts receivable. That experience enabled us to develop the materials, software and protocols that constitute the COMMISSION EXPRESS system.
COMMISSION EXPRESS businesses apply the general factoring process to the specialty of factoring real estate sales commissions. We purchase these pending receivables on the basis of their quality as an asset and the professionalism of our customers.
COMMISSION EXPRESS customers use our services because the process is easy, fast and reliable. They usually sell their receivables at the time of contract ratification.
After completing an Application Packet, customers submit the necessary documents to COMMISSION EXPRESS for review. When approved, they can come to the COMMISSION EXPRESS offices to get their advance check or we will mail or wire the funds. The process usually takes less than two days.
As a COMMISION EXPRESS franchisee, you will be helping customers manage their cash-flow in exchange for the opportunity to purchase pending receivables at a discount. It is a situation where a reasonable exchange of values takes place, and where everyone has an opportunity to benefit.
|Min. Net Worth:||$250k||Years in Business:||21|
|Home Based:||True||Financial Assistance:||No|
|Lead Assistance:||True||Recession Resistant:||True|