The quick comparison
| Commission advance | Credit card | Line of credit | |
|---|---|---|---|
| What it is based on | One pending deal | Your credit | Your credit and income |
| Credit check | None at Premier Commission | Yes | Yes |
| Cost | One flat fee, from 5% of the amount advanced | Interest at your card's APR until paid | Interest on the balance, plus any fees |
| Monthly payments | None; repaid from the commission at closing | Yes | Yes |
| How much | Up to 90% of your net commission on residential resales | Your available limit | Your approved limit |
| Speed | Same day when signed by 1 PM ET | Immediate if you have room | Immediate once approved |
When a commission advance makes sense
- You need the money before a specific closing, for a specific purpose: marketing a new listing, staging, estimated taxes, payroll for an assistant.
- Your card or credit line is maxed out, or new credit would hurt your score before a mortgage or business loan.
- You want a fixed, known cost instead of interest that keeps running if the closing slips.
When a card or credit line costs less
If you already have a low-rate line of credit with room on it, and you will pay it off from the commission within a few weeks, the interest may be less than an advance fee. Run the numbers on the same deal.
Run the numbers on the same deal
Example: you need $8,000 and the closing is 28 days away.
- Commission advance: 5% flat fee on $8,000 = $400. You receive $7,600 today. No payments; your brokerage pays us $8,000 at closing.
- Credit card: interest depends on your card's APR and how long you carry the balance. Check your statement for the APR on new purchases or cash advances, which is often higher, and include any cash-advance fee.
- Line of credit: interest at your line's rate for the days the balance is outstanding, plus any draw or annual fees.
Compare the dollar cost for the same amount and the same number of days. Then weigh what the money does for your business in the meantime.
What a commission advance is not
It is not a loan under Premier Commission's agreements: you and your brokerage sell part of a commission you have already earned, and it is repaid from that commission at closing. It does not replace a long-term credit line for a business that needs ongoing working capital.