How Can a Commission Advance Help During Covid-19

Posted in: Commission Advance

The COVID-19 crisis has fundamentally changed the way we do business for the foreseeable future.  Even when this crisis is over, the way we are adapting to new methods of conducting real estate transactions is likely to remain. For some businesses these solutions are new, such as online video conferencing or working from home. However, traditional solutions for real estate agents still apply, with one solution being a Commission Advance.

What Constitutes a Commission Advance?

A commission advance is a type of financial service where a real estate agent sells part of their pending commission at a discount and receives their commission prior to closing.  For example, an agent that is set to earn $10,000 at an upcoming closing, might sell that commission receivable for $9,500 in order to get paid in advance. This allows agents to monetize a transaction without having to wait until the sale actually closes and commissions disburse.  Transactions can be delayed by buyers or sellers, with financing, title work, third party escrows, or other brokers, but with a commission advance these delays don’t affect when you receive your commission.  

How does it work?

To understand how a commission advance works, let’s provide an example. Say you stand to make a commission of $8,000 on a real estate transaction closing within 30 days but you decide you want to receive your commission before closing.  You can opt for a commission advance and receive $7,600 for a fee of $400, with the transaction completed and funds in your account the same day. In this example, the discount (or fee) is 5%. 

How can your business benefit from a Commission Advance?

Every real estate agent has their own monthly expenses to pay without having monthly commission income, but commission advances allow agents to control their income schedule.

Most agents have fixed monthly expenses related to their business, but their sales do not close on a fixed monthly schedule.  Agent expenses can include marketing and promotional expenses, MLS expenses, license and membership expenses, taxes, paying a team, automobile repair and maintenance, fuel costs, lease payments, and rent to name a few.

Commission advances allow agents to receive their commissions on their own schedule, without having to wait until closing.  This provides peace of mind to agents that they can access their commission when they need it to fund their continued business growth.

In the current crisis, delays have unfortunately become more common so having our solution available is particularly timely.

Why is a commission advance a better option than alternatives?

Some alternatives to a commission advance are credit cards or bank loans.  While credit cards can be used for purchasing quickly, high interest rates that compound can be very expensive.  In addition, keeping credit card debt can harm an agent’s credit score.  With commission advances, there is no compounding interest rate and there’s no impact on an agent’s credit.

Business or personal loans are another alternative.  While they can be priced well, there’s a significant effort in order to submit applications and supporting documents, which can take weeks or even months before the bank decides whether to make the loan.  With commission advances, decisions are made in a matter of hours and agents can have their transactions funded the same-day with minimal effort.


Commission advances are a unique service available to real estate agents that can help an agent’s business, and with Concord, they are quicker and easier than other financing alternatives. 

Please contact us at or 888-923-8262 if you have any questions about whether our service would work for you.

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