For South African estate agents and agencies, cash advances on real estate commission can be a lifeline – making it possible to control cash flow while waiting for property transfers to be registered.
Learn more in the following sections below:
- challenges facing South African real estate agents
- what is an estate agent commission advance?
- when is a cash advance on real estate commission a good idea?
- how to get a cash advance on real estate commission
Challenges for South African estate agents
Being an estate agent is extremely competitive. There are many agencies and independent agents vying for a limited pool of properties for sale.
Even when a sale is secured, the transfer process can be long with unpredictable delays and complications.
This can result in an erratic cash flow for agents. They may have to wait months and sometimes more than a year for their commission.
This is especially hard to deal with as the cost-of-living crisis continues and inflation causes monthly expenses to rise for all South Africans.
How do estate agent commission advances work?
An advance on estate agent commission is essentially a bridging loan. It covers the gap between selling a property and receiving the commission for the sale.
Because the sale is a binding legal process, you can safely borrow money in anticipation of this payment without risking unpayable debt.
Once the commission is paid, the loan is settled. In the interim, you can avoid falling behind on account payments and other living expenses.
When is a cash advance on commission a good idea?
A cash advance on real estate commission is a solution to a temporary cash-flow issue.
This type of loan can help estate agents cover costs while waiting for sale proceeds to come through.
It may also help agencies exploit valuable opportunities to grow, rather than being constrained by a temporary lack of funds.
If you have a solid property sale with no complications and all you need is to wait for the commission to come through, this type of loan is a fast, low-risk funding alternative.
How to secure a cash advance on real estate commission
Our team will guide you through the process and contact the transfer attorney to get the necessary information and paperwork.
If everything is order, your application will be approved and the funds will be transferred to your bank account via EFT.
Once the property transfer is completed, the attorney will settle the loan with us directly.
Why choose Lamna for a cash advance?
Lamna is a trusted and established financial services provider. We have been providing bridging finance to clients across South Africa for many years.
Client borrows R10,000 for 90 days.
Total Cost of Loan
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.
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