Can you Resort to Commission Advance to Become Self-Sufficient in Business Funding?

By on March 23, 2018
Business Funding

The only way to make your business grow is to accelerate the cash flow by focusing on accounts receivables. It is also perhaps the only way of ensuring a steady flow of funds for business, a model adopted by some of the cash-rich companies. However, expediting the due payments is often a tedious task that requires good resources, investment, and infrastructure. You have to follow up closely with the debtors in an organized way, but there is no guarantee that the efforts would bear fruits. It can often turn disappointing although there is hardly anything better that you can do. When you are wondering what could be the way out from the maze, you must look at some other options that could ensure the receivables without reach you fast. Does it not sound interesting? Read on to know more about commission advances that help to collect your dues much earlier than agreed.

Funding with advances

When you strike a deal and await the commission from it, the wait can affect the prospects of funding your ongoing business negatively. Depending on the industry to which you belong, the wait can even stretch up to four years, as it happens for some real estate agents in Canada.  However, it is normal to wait for 60 to 150 days to see the commission reaching the bank. The wait can turn into an ordeal because to keep the business running and maintain a steady flow of revenue; it would necessitate more aggressive selling that can be quite challenging in the face of fund constraints.

Removing the constraints on funding

All the constraints seem to disappear suddenly when you avail the facility of selling the major part of the commission, almost 95%, to the company that offers commission advance. The receivables thus shrink considerably, as you receive the money almost instantly. Now, you can put back the money into the business so that it can move fast along the growth track.

Make commission advance a part of cash flow management

Instead of using the commission advance as and when required, you could build it into your cash flow management. Use it as a strategy to reinforce cash flow so that you can concentrate on business growth without having to bother about chasing debtors or waiting for commissions. A time would come when you would almost forget that one has to wait for some months to earn a commission. It would now be possible to execute deals faster; increase sales and reinvest the money you earn from commissions.  It provides an excellent opportunity for self-financing your business by overcoming the constraints of cash flow.

When you have the power to steer your business with your finances, it makes you more confident of expanding it without taking loans or any external assistance for funding. You generate immense satisfaction on being able to cross the difficult terrains of cash flow management without any assistance from others.  It increases your faith in your abilities and drives you towards achieving goals that until now seemed farfetched.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.