Glossary, all the terms you need to know

What is a Commission Advance Company?
A Commission Advance Company is an organisation that assists Real Estate Agencies with cash flow support via a commission advance facility.

What is a Commission Advance Service?
A commission advance is a financial service whereby you sell a pending sales commission for a fee. In exchange, funds are advanced to you before settlement. It’s not a loan. It’s simply access to the commission you’ve earned without the wait.

What is a Commission Advance?
This is the amount of money that we advance to you upon receipt of a completed commission advance application. Commission Flow will advance against 100% of your real estate sales commission owing plus any vendor paid advertising costs.

What is a Commission Advance Application?
A Commission Advance Application means an application completed by a Real Estate Agency and submitted to Commission Flow requesting a Commission Advance against a pending unconditional sale.

What is the Commission Advance Fee?
A Commission Advance Fee is the amount charged by a Commission Advance Company in order to process a Commission Advance Application.

At Commission Flow, we want to keep your costs down, which is why we calculate our fees, based on an affordable and competitive daily rate. Your fees will be determined on how long it takes you to settle the balance. To calculate the cost of your commission advance fee click here.

What are establishment fees?
Establishment fees are charges the agent incurs when he or she applies for a commission advance facility. It is usually deducted from the first Commission Advance processed. Commission Flow does not charge establishment fees, or early repayment or account management fees.

What is Real Estate Factoring?
Real Estate factoring has the same meaning as a Commission Advance Service, which is a financial service whereby you sell a pending sales commission for a fee.

What is a Real Estate Factoring Company?
A Real Estate Factoring Company has the same meaning as a Commission Advance Company, which is an organisation that assists Real Estate Agencies with cash flow support via a commission advance facility.

What is Cash flow?
The measure of actual cash flowing in and out of a business.

What is capital?
Capital is cash or other assets that a business uses to provide their product or service. Capital can be used to invest in long-term assets such as machinery or equipment or for day-to-day business expenses. With a Commission Flow commission advance facility, the funds you receive can be used for any business purpose you like.

What is working capital?
Working capital is made up of cash and short-term assets and liabilities of the business. Working capital assets are readily converted to cash.

What is Invoice finance?
It is finance offered based on the strength of a business’ accounts receivable. This form of financing is similar to factoring, except that the invoices or accounts receivables remain with the business.

What is a Line of credit?
An agreement allowing a borrower the ability to withdraw money from an account up to an approved limit.

What is an unsecured loan?
Unsecured loans don’t require borrowers to provide collateral or security to the lender. As a result, unsecured loans may often be more convenient or accessible than secured business loans.

What is collateral?
Collateral, also known as security, is cash or another asset such as property or equipment that borrowers supply to lenders to secure a loan. In the event a borrower is unable to repay the loan, the lender takes possession of the collateral. Commission Flow doesn’t require you to provide collateral or security to establish a commission advance facility.

What is an Overdraft facility?
A finance arrangement where a lender allows a business to withdraw more than the balance of an account.

What is Loan to value ratio (LVR)?
Your loan amount shown as a percentage of the market value of the property or asset that will be purchased. The ratio helps a lender work out if the loan amount can be recouped in the event a loan goes into default.

What is the Personal Property Security Register (PPSR)? The PPSR replaces a number of registers of security interests and provides a single national noticeboard of security interests in personal property.

What is a Contract of Sale?
A written agreement outlining the terms and conditions for the purchase or sale of property.

What is a Conveyance?
The legal process for the transfer of ownership of Real Estate.

What are Real Estate Sales Commissions?
This means the monies payable to the Agent by a Vendor in consideration of the services provided by the Agent to the Vendor, pursuant to a Sale Authority and Underlying Contract.

What does Settlement mean?
Means the settlement or completion of the sale and purchase of the Property under the Underlying Contract.

What is Real Estate?
Land and all physical property on, below or attached to the land. Houses, sewers, trees and fences are all Real Estate.

What is a Sale Authority?
Means the agreement signed by the Vendor and the Agent containing the terms and conditions upon which the Agent is to be paid by the Vendor.

What is a Certificate of Title?
A legal document evidencing a person’s right to or ownership of a property.

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17 Things You Need To Know Before You Get A Commission Advance

 

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