Is Commission Express the right factoring company for you?
Drawing on the concept of factoring, the founders of Commission Express began their company in 1992 as an opportunity for realtors to manage their cash flow more effectively while waiting on settlements. It was so well received that the company began franchising their concept in 1996. Today, Commission Express can be found in most major metropolitan cities across the United States.
Commission advances are designed specifically for real estate companies and the agents and brokers working for them as independent contractors. Funding can be used for a variety of business expenses such as advertising, marketing, overhead, professional seminars, or any number of other expenses related to maintaining business momentum. Verification that Commission Express’ services are being utilized for business purposes only is required.
About Commission Express’ Factoring Program
Applying for a commission advance through Commission Express is a simple process. After creating an account online, documents on a projected settlement are simply sent to Commission Express and a percent of the commission is advanced within 24-48 hours. Upon closing, payment for the commission is remitted to Commission Express by the real estate company or the settlement agent. Once received, the holdback amount is then rebated.
Commission Express’ discount fees are based on the number of days until a projected settlement is to take place. It is generally anywhere from 6% to 16% on 15 to 90 day settlements. The holdback amount is equal to the discount fee rate. For example, if the discount fee is 10%, an additional 10% would be held in reserves, meaning an 80% commission advance would be paid upon submittal of the receivable paperwork. The 10% in reserves would then be returned once full payment has been received by Commission Express. Commission Express offers a 30 day grace period on all transactions in case a closing is delayed. Anything after the 30 day grace period would result in additional fees. In cases where a settlement is cancelled altogether, the advance will be assigned to another commission receivable.