About factoring and how it applies to commissions

Factoring is not a loan; it is a specially designed financial service used by businesses large and small to manage their cash flow. It is the buying and selling of account receivables that are due to mature in the near future. The business selling the account receivable receives money from the business buying the account. When the account receivable matures, the buyer of the account receivable is then paid.

In the real estate profession, Agents and Brokers are employed as subcontractors of a brokerage. Thus operating as an independent business and generating account receivables (pending commission payments). These account receivables typically mature in 15 to 90 days. If an agent or broker needs money to cover expenses now, they can utilize Accelerated Commissions’ service to convert their pending commission payments into money.

Money received is used for operating expenses such as continuing education, referral generation, marketing costs, and taxes. The fee for the service is a small percentage of the commission and is tax deductible if used for business expenses. With the ability to accelerate the payment of pending commissions, you can operate more efficiently, plan ahead, consistently advertise, increase listing inventory, successfully market them, and make more money!