90 days – that’s the average waiting time for a property agent to receive their commission after a deal is closed. We understand how limiting and frustrating the waiting time can be. The uncertainty of not having a steady income means it’s difficult to plan and forecast for your business.
Advancing your commission doesn’t just mean extra cash; it brings greater advantages for yourself and your career. It gives you the confidence to focus on taking the next steps to close a deal and grow your business, rather than worrying about finances.
Whether that’s investing in marketing or having greater income security, a regular and reliable stream of commission provides peace of mind. Here’s why more property agents are advancing their commission.
1. Income Security
Like many commission-based careers, the real estate industry can be unpredictable as it closely follows the cyclical patterns of the domestic and global economy. Having sufficient savings ensures financial security during dry periods.
As an agent, having control of your commission is one of the greatest assurances. A commission advance provides instant access to your income to help meet your needs and your family’s throughout the month.
Pro Tip:
Aim to have sufficient funds to cover your expenses for at least six months. This ensures you can pay your bills and expenses, even if you don’t close any sales
2. Business Expenses
Expenses such as transportation costs and servicing potential clients are necessary for closing a deal. When the demand for regular business expenses is present, waiting to receive commission can get stressful.
With an advance, you can operate your business worry-free by paying your expenses on time and focus on doing what you do best – sell.
3. Invest in Marketing
In real estate, the power of marketing is an agent’s greatest ROI. Publicising your brand and your properties to prospective buyers makes a sale. As home buyers become more digital-savvy and seek for listed properties online, home sellers are choosing agents with a larger advertising budget to reach more prospective buyers.
The best marketing strategies involve consistent activity, rather than an ad-hoc approach with waves of investment. Sustained marketing means having a continuous influx of leads and sales, which in the long run, costs less in terms of time, effort, and money.
A commission advance provides cashflow to invest in ongoing marketing such as building a website, run paid social media promotions to increase your brand awareness, and list properties on marketplaces. In turn, you keep up with a competitive market and grow your business.
Pro Tip:
Track and review your marketing spend and strategies regularly to ensure you have the capacity to convert your leads into sales.
4. Grow your business
While the property industry has its ups and downs, having capital to fund your business strategies brings predictability and certainty.
With financial security, you can plan your finances, set concrete business goals, and create a plan to achieve your sales. Business continuity relies on a healthy cash flow, which can prove challenging when you have to wait up to 90 days or more for your commission.
The option of accessing your commission anytime gives you the assurance that you can commit to more strategic business decisions.
5. Best short-term funding option
Alternatives such as credit card advances or bank loans are expensive and time consuming. These are loans that can incur high interest rates – even the best rates from credit cards in Singapore charge 24% APR (Annual Percentage Rate yearly interest charged on loans). In addition, an initial cash advance fee of at least 5% applies the moment you advance.
The common misconception of commission advance is that it is a loan. It is not! With LytePay, we only charge a one-time processing fee of 3.5% per advance. There’s no interest and no risk – you can only advance the commission that you’ve earned. This prevents getting trapped in a “spiral of borrowing”, unlike bank or credit loans.
Best of all, you will receive your commission advance within three days. Whether you need better cashflow for your business, personal expenses, or for a dream vacation, LytePay’s got you covered.
Take the first step towards greater income security with LytePay. Sign up for free today.