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Find A LenderiCommission: Overview
It can be tough for businesses to maintain positive cash flow, even if you’re profitable. This is especially true when clients pay late. Unfortunately, times of cash flow shortages can mean missing out on opportunities or being unable to pay vendors and suppliers.
In the case of real estate professionals, a lack of cash flow can mean being unable to provide the highest level of service to clients. Real estate agents perform several duties and have multiple professionals to pay as part of the selling process. While a hefty commission cheque awaits once the deal closes, agents are typically required to cover all expenses until payday.
Agents can often find themselves waiting two or three months for their commissions after the deal closes, and sometimes longer. And the more business grows, the more bills that have to be paid along the way.
Fortunately, a service like iCommission is available to provide agents with commission advances. This helps maintain positive cash flow and provides industry professionals with the capital needed to ensure that other professionals they work with are paid and that clients continue to receive the high level of service they expect.
iCommission Overview
| Types Of Commission Advances Offered | Resale/Commercial/LeasingPre-Construction Advances |
| Funding Amount | Up to 90% of the net commission before sales tax for residential resale deals and up to 80% for all other deals. Maximum commission advances are capped at $40,000 |
| Cost | $0.60 to $0.75 per $1,000 per day (until closing date) |
| Services Available | Across Canada (Except Quebec) |
| Credit Check Required | No |
Who Is iCommission?
iCommission is a Canadian commission advance company founded by real estate experts. The company offers a unique approach to help agents get access to their commissions upfront to cover expenses and drive business growth.
Rather than waiting for clients to pay their commission fee and cover costs out-of-pocket, real estate professionals can cover the costs associated with serving customers with their earned commissions. This provides agents with reliable and controllable funding.
The company’s mission is to provide industry experts with the financial flexibility required to provide top-notch real estate services and remain competitive in the real estate market.
What Is A Commission Advance?
iCommission’s feature product is its Commission Advance, which pays out a future commission for a flat fee when a real estate transaction is under contract and pending closing. In other words, real estate professionals can receive their commission payout before the deal closes in exchange for a fee.
All you need to do is provide iCommission with a few details about the pending transaction and the commission amount requested. After approval, the funds will be deposited into your bank account shortly after applying.
Two Commission Advance types are available:
- Resale/Commercial/Leasing — Industry experts can receive up to 90% of their share of the commission, up to $40,000 per deal.
- Pre-Construction Advances — Agents can receive up to 80% of their total commissions. Terms and conditions may apply
How Much Does iCommission Cost?
iCommission charges a flat daily discount rate. Currently, depending on the cases, it costs $0.60 to $0.75 per $1,000 advance, per day, until repayment. However, these costs can vary based on the prime rate. The days charged are from the day of funding till the closing date. Plus 10 days to account for delayed processing times.
There are currently no other fees, including administrative fees and reserve holdbacks.
Features Of iCommission
iCommission offers the following:
Instant Payout
Rather than waiting for your commission cheque to come in and dealing with payment delays, you’ll receive your commission instantly with iCommission. This allows you to continue providing clients with excellent service while reinvesting in your business as required.
Competitive Rates
iCommission offers some of the most competitive rates in the industry, providing you with exceptional value. Their transparent pricing model ensures that you receive clear and straightforward service, with no hidden fees or reserve holdbacks with their best rate guarantee.
Value-Added Business Support
iCommission was established by Realtors, for Realtors, with a deep understanding of the industry and the keys to success. We provide comprehensive resources, insights, and opportunities across all aspects of your business – marketing, sales, relationship building, and referral networking – so you can fully leverage our suite of services to elevate your career.
Ultimate Convenience
iCommission’s platform is driven by innovative technology, providing a highly streamlined process that allows you to quickly and conveniently apply for your commission advance online and receive approval within minutes. In as little as an hour later, you’ll have access to your advance.
Who Is A Commission Advance Good For?
A commission advance is ideal for the following:
- Agents Experiencing Irregular Income — Agents may have very busy and profitable months throughout the year, but there may also be times when business is slow. During these dips in sales activity when incoming cash flow may not be enough to keep up with ongoing business expenses, a commission advance may be highly lucrative.
- New Agents — New agents who are in the early stages of building their client base may find commission advances helpful for covering initial expenses and marketing costs while waiting for their first deals to close.
- Agents With Many Deals — Agents who have several deals in the works can use commission advances to ensure they have enough money to cover ongoing business expenses or to reinvest in their business.
Benefits Of A Commission Advance
There are several perks to using iCommission to get an advance on your real estate commissions:
- Better Cash Flow — A commission advance provides immediate access to much-needed funds for industry experts to cover all expenses — including personal finances — before their deals close.
- Reinvest In The Business — There’s always something needed to keep business flourishing, but this takes money. Rather than miss out on opportunities for continued sustained business and scaling operations waiting for commission cheques to come in, a commission advance can provide the funds needed for reinvestment purposes.
- Low Risk — Since commission advances are restricted to deals that are under contract and pending closing, there’s little risk of collecting an advance without actually getting paid a commission from your transaction. If the deal falls through, iCommission may arrange a repayment plan.
What Do You Need To Qualify For A Commission Advance?
To be eligible for a commission advance, you’ll need to meet certain requirements:
- Firm Sale – You can apply for a commission advance when your deal goes firm and all conditions have been waived.
- Bank Account – To receive your commission advance, you’ll need an active bank account for iCommission to deposit your funds once you’re approved.
- Brokerage Registration With iCommission – Your real estate brokerage must be registered with iCommission. Most Canadian brokerages are already registered, but if not, the process is quick and simple.
- Commission Purchase Agreement – Both you and your brokerage will need to sign a commission purchase agreement.
Can You Get An Advance With Bad Credit?
Yes, you can still be eligible for an advance with bad credit, so long as you meet the other requirements. iCommission does not require credit checks, so your credit score is not taken into consideration.
How To Apply For A Commission Advance From iCommission
Applying with iCommission is very easy and is done entirely online. Simply provide the following information to get the process started:
- Name
- Email address
- Phone number
- Transaction address
- Commission advance requested
How Will I Receive The Advance?
If you qualify for an advance, iCommission will send you the funds via Electronic Funds Transfer (EFT). During the application process, you’ll need to provide a void cheque. The void cheque will have the information required to send you the money to your account.
You’ll receive your funds the same day or the next business day depending on when you complete your application.
Final Thoughts
Real estate agents tend to rely on positive and steady cash flow to provide good service to their clients and maintain profitable operations. But if you often find yourself short on cash flow while waiting for your commissions to be paid, then a commission advance from iCommission may be right for you.
