The Importance of Leveraging Your Working Capital To Grow Your Real Estate Business

Every real estate agency aspires to grow.

While “growth” looks different for every agent and business owner – from team growth, technology growth, revenue growth, office expansions and more – it’s the ultimate business goal to go from where you are to where you want to be.

So, what’s the real estate agency’s roadmap to growth?

In order to grow, you need to invest.

By investing in the core pillars of your business, namely your processes, people and technology, you’re able to expand, increasing your reach, profitability and productivity potential.

To do this, you have to take your working capital and reinvest it into the business.

Working capital is essentially the funds your agency has on hand that is used for your daily operations. When you prudently invest these funds back into your business, you have the capacity to expand, no matter whether you’re a small or new agency, all the way to a well-established and large agency.

Then what’s holding agencies back from growth?

Commissions – or more precisely, the time commissions take to reach your bank account to turn into working capital.

Sales commissions are the number one source of income for the majority of Australian real estate businesses across the country. The problem is that, depending on the particular sale, commissions can be weeks if not months away from the settlement date.

So, even if your agency is making multiple sales a month, you can still find yourself strapped while waiting for commissions to come in months after all the work is long done. If you don’t have working capital, you can’t invest in opportunities like more staff, technology or marketing to grow your agency.

3 reasons why working capital is so important for your Real Estate business

  1. Hiring more sales support staff

Imagine empowering your revenue-generating sales agents to focus more of their time on what they do best by providing a support team to take care of all of the admin of each sale. By recruiting more office staff today, you can free up your agent’s time to secure more listings, which in turn, increases their revenue potential every day.

  1. Adopting the latest real estate industry technology

Real estate tech has come a long way. From listing presentations to CRM systems, automation and AI, your agency can earn excellent results when investing in innovative technology to boost your team’s efforts and make them more efficient.

  1. Better Agency Marketing

Marketing and sales go hand-in-hand. With the right branding, messaging, content and advertising, you can increase local awareness and draw in more leads to increase your suburb market share. However, marketing initiatives like

4 ways to leverage your working capital to grow your real estate agency

When you have more working capital funds on hand today, you’re able to invest in initiatives like:

  1. Hiring more sales support staff

Imagine empowering your revenue-generating sales agents to focus more of their time on what they do best by providing a support team to take care of all of the admin of each sale. By recruiting more office staff today, you can free up your agent’s time to secure more listings, which in turn, increases their revenue potential every day.

  1. Adopting the latest real estate industry technology

Real estate tech has come a long way. From listing presentations to CRM systems, automation and AI, your agency can earn excellent results when investing in innovative technology to boost your team’s efforts and make them more efficient.

  1. Better Agency Marketing

Marketing and sales go hand-in-hand. With the right branding, messaging, content and advertising, you can increase local awareness and draw in more leads to increase your suburb market share. However, marketing initiatives like social media and advertising require having a marketing budget.

  1. Move into a larger office

Growth has a physical presence too! If your goal is to expand your team, then you need to look at bigger offices that meet your team’s needs. This includes furniture and desks, computers, meeting rooms and so on. This way, you can give your growing team more space and make a great impression on everyone who walks in.

This all sounds great.

However, you need that working capital today in the first place to be able to even try any of these. Herein lies the challenge.

The problem with your current Real Estate payment cycle

As a Real Estate agency, you know that you typically have to wait between 30 to 120 days before settlement for your commission to be paid into your account.

This frustratingly long payment cycle can hamstring your agency’s ability to grow and take on new properties or sales, causing you to lose your competitive edge in the crowded marketplace.

That’s why at Commission Flow, we provide you with immediate access to your pending commissions to help give you back financial control of your business and claim your working capital sooner.

Rory Somerville, Managing Director for Ray White Bendigo, is one of the many Real Estate business owners who have experienced immense growth with the help of Commission Flow.

Rory tells us, “We were once a team of 3. Now we’re 33 and we feel Commission Flow has been a large contributing factor to this over the past 24+ months. It allowed us to effectively maintain working capital in our business through the peaks and troughs of weekly settlement periods. We can reinvest it into more staff, technology, marketing and growth.”

How can Commission Flow help you?

Commission Flow is a commission advance service providing Real Estate businesses and agents with a great opportunity to proactively build financial security through more leverageable working capital.

With us, agencies no longer need to wait until settlement to receive their commission. Instead, you can access your funds as soon as you need them, with payment made in as little as 4 hours.

“With Commission Flow, our pending commissions are being paid the same day. This gives us so much control over our finances so we can put the income towards what the business needs now, rather than waiting for settlement to clear,” says Rory Somerville, Managing Director for Ray White Bendigo.

Accelerate your business growth with Commission Flow

At Commission Flow, we empower Real Estate businesses like yours to unlock your future earnings, allowing you to achieve faster business growth by investing your hard-earned working capital into assets such as highly-skilled staff, better technology and more effective marketing.

Learn more or create a FREE no-obligation account with Commission Flow today.

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Nathan Simpson

Nathan Simpson

National Sales Manager

Nathan Simpson is a seasoned sales and marketing professional, and the National Sales Manager of Campaign Flow, a service that allows real estate agents to offer first-class marketing without the hurdles of upfront marketing costs - think Vendor advertising finance made easy.

With an aim to grow and expand the accessibility to easy VAF (Vendor Advertising Finance) in the real estate space, and extensive experience in the real estate industry, Nathan is part of a team dedicated to changing the way agencies do business, by removing their cash flow issues.

To connect with Nathan, click the LinkedIn icon below.