Why You Need a Commission Advance

Charlie Brown By Charlie Brown, 16th Jan 2018 | Follow this author | RSS Feed | Short URL http://nut.bz/7wl21scy/
Posted in Wikinut>Business>Accounting & Finance

Your earnings in the form of commissions are what are referred to as ‘receivables’. Your business needs cash constantly in order to remain operational.

Why You Need a Commission Advance

You have heard a lot about salary advances, but have you ever thought about taking a commission advance? If you work in commission based jobs, that is something you may need to consider.

An advance is oftentimes necessary when something unprecedented comes up when you are low on funds.

It is what you run for when all there is in your wallet is lunch money and a few butterflies.

Why is it important?

It is important because you work independently. Your earnings in the form of commissions are what are referred to as ‘receivables’. Your business needs cash constantly in order to remain operational. Commission work depends a lot on the availability of funds. You need to:

 travel in search of new business
 follow up on pending deals
 promote your business
 attend workshops and seminars
 have thefunds to take care ofyour business expenses
 pay taxes on time
 fund marketing activities
 meet your living expenses
 pay office expenses

If or when you find yourself short on funds, your efforts at any of the aforementioned will be frustrated. Instead of borrowing from financial institutions, approach an established company for a commission advance. It is simple, fast and reliable.Banks and private lenders will charge interest and taint your credit record should you fail to pay up in time.

How much will you get?

You will get your share of the commission minus the discount and what is called a holdback. In total, you receive your advance immediately. When the receivable is due, you will receive your holdback.

It is important to have a figure in mind though, depending on what you need the funds for. Buying groceries is one thing. Funding a huge marketing campaign is quite another. You will doubtlessly need more for the latter.

In as much as it is money coming to you, you still want to be disciplined about using it.

How it works

 Create an account.
 A username and password are emailed to you.
 Use them to login and apply for a commission advance.
 Most of the documents the company needs are already in your file. The company will provide the rest.
 Submit the completed document.
 Once your application is reviewed, the advance will be deposited in your account.

Most companies do not run credit checks, but they do expect you to exude professionalism and experience.

What if the commission is delayed?

You have succeeded in getting your commission and have already used up the cash for what was intended. Your deal closed just fine, but the client has failed to pay up.

What happens?

Most companies provide a 30-day window on transactions. It is expected that the payments will be made within this window. If the settlement is not made, then you must assign another commission to the company.

Getting your commission advance will no doubt furnish you with much-needed funds to get your business up and running when you find yourself in a bit of a financial crunch while the bills are calling.

Tags

Commission Advance, Commissions

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author avatar Charlie Brown
Charlie is a content writer

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