WITH BANKS IMPOSING inflexible and restrictive lending criteria, it can sometimes be difficult to get cashflow for your agency at the times you really need it. If you are looking for a standby finance line or a working capital facility that can grow in line with your sales, Express Commission may be able to do what the banks can’t. We spoke to Managing Director Richard Fay to find out more.
Tell us a little more about Express Commission.
We provide agencies with a confidential working capital/cashflow solution very quickly (that is, within hours) without loans, financials or hassles. No ‘bricks and mortar’ security is required. The solution is a commission advance based on pending commissions for unconditional sales.
An agency principal might want the cash early for a variety of reasons; for example, to cover unexpected settlement delays and business expenses. Recently we had one client use our services to change franchises and branding, which they would otherwise not have been able to do. It was about a fresh start and we made that possible sooner for this client.
In many cases agency principals are transacting with us to keep their sales force happy by paying sales commissions on exchange; as we know, happy sales people are more productive and successful.
Since we commenced in 2005, we have funded over $100 million in commission advances.
What sort of fees do you charge?
There are no upfront establishment fees or lock-in contracts; our fees are based on the amount advanced and the term, and are paid on settlement.
How do you work with agency principals?
We look at the agency’s entitlement to the commission, rather than taking the approach the traditional lenders do. We don’t ask for detailed business plans, cashflow statements, financials and trading history. We ask for information about the commission and, depending upon the time until settlement, we can advance up to 90 per cent of the commission.
Once the facility is set up, agency principals can use it as they like. They determine when they might require the funding; it can happen any time after a contract has gone unconditional and prior to settlement. It is possible to have multiple commission advances at any one time.
Once the contract has gone unconditional, how soon can commission be accessed?
For existing customers it is super-fast; clear funds are guaranteed to be deposited into the agency’s bank account within four hours, although it can be as fast as two hours. We do take our name “Express Commission” very seriously! Applications for new customers take a little longer, but are generally turned around the same day.
Does it affect relationships with banks?
We consider ourselves to be an additional product to a bank facility or, in some instances, an alternative.
How do agency principals complete an application?
New customers may complete an online application or download an application form. Existing customers simply log onto our site; it’s probably around one minute’s work, or for a really organised person around 30 seconds! We then send them a one-page Commission Advance agreement to sign and return.
Providing everything is in order, the funding is almost instantaneous.
When is the Commission Advance repaid?
Once settlement has occurred, the principal contacts us for the closing figure, which we advise based on the amount of the advance plus our fees.
Is there a limit to the amounts that can be advanced?
One of the many great features of the Express Commission service is that the facility may grow in line with agency sales growth; the more sales commissions pending settlement, the larger the advance facility may be.
To find out more about how Express Commission can help your business visit expresscommission.com.au.