Businesses are faced with a number of varying situations as they move through the business life cycle – from start-up, to growth, to maturity. All these stages tend to have different and specific financial needs.
Advance commission can be used in any stage of the business lifecycle, making it a versatile and practical option for businesses going through change or growth. And it doesn’t just have to be used when you’re facing financial difficulty.
We’ve come up with 6 ways you can use your advance commission that you might not have thought of.
What can $250 do for you?
With rates as low as $250 per transaction, our commission advance service is the fastest, easiest way to get the cash you need to grow your business. You could use it to:
- market your agency online
- invest in some new or additional signage
- design and send open house cards, newsletters and prospect cards
- advertise in the local newspaper
- send thank you gifts to clients
- invest in yourself and your staff with additional training
Or, just use the cash to take care of pending bills, have a holiday, or treat yourself for all the hard work you’ve put in.
These are the most common things that businesses will spend their money on. But what about some other things you probably wouldn’t think of?
Here are some different ways you can use your advance commission payment that will give your business a boost.
1) Raising capital for new businesses
For many small businesses, funding support is one of the biggest hurdles. Many owners, particularly younger entrepreneurs, lack the asset base typically required for traditional funding facilities like banks. Commission advance makes it easier to move the business towards that vital growth phase.
2) Keeping up with rapid growth
Rapid growth for a start-up is every business owners’ dream come true! But how do you keep up with the funds needed for rapid growth? When sales are increased, so are the costs associated with these sales, and if timing of receivables doesn’t match payables, then often the business is exposed to serious cash flow issues. Sometimes these can be enough to close down the business.
Commission advance lets you bridge the ‘cash gap’ between the time you sell a house and when you receive your commission payment on settlement. This allows you to keep up with the rapid growth of your agency.
3) Trading and cash flow difficulties
Having to wait up to 6 weeks to receive your commission owing can cause a reduction in working capital, which can slow your agency down and result in serious trading difficulties. Advance commission allows you to get on with business as normal and grow and maintain your client relationships.
4) Seasonal sales
Most businesses have an element of seasonality in their sales, and real estate agencies are no different. For some it can be make or break the business in terms of annual results. Advance commission can help with supplying cash for wages and other essentials in your quiet periods, before turnover picks up.
5) Agency take-over
During the life cycle of business, employees or managers can be faced with the opportunity to buy out the owners. Often in this circumstance, the buyer may not have enough money for the full buyout. Advance commission, in addition to other sources of finance can provide the funds necessary to buy out existing shareholders in this situation.
6) Acquisitions
If you’re faced with the opportunity to gain other businesses, or even a competitors business, you might not have the money needed to go ahead with the purchase. Advance commission can give you the additional funds you need, as well as reliable cash flow, to ensure a smooth integration of the business.
There are so many things that advance commission can be used for, not just in an emergency when you desperately need to boost your cash flow. If you didn’t know that you could use commission advance for these types of situations, now you do!
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