Broker’s Partner with Capital Growth

May 13, 2014

Several brokerages provide commission advances to their realtors as a value-added service and an additional revenue stream. It may seem logical since they will receive the initial commission fee from the home transaction, however some are dropping this service in favor of partnering with a professional financing company instead.

Here is why:

  1. Capital — It requires a lot of capital to start. Depending on the size of the brokerage, they may not have so free cash available to use.
  2. Better Use of Cash — Their cash can be better used towards growing the core business instead of expanding periphery services.
  3. Increase Popularity — Commission advances offered directly by the broker tend to be much more expensive than the rates offered by professional finance companies. As a result, they are not as popular as they are elsewhere.
  4. Lower Costs for Realtors — Due to the increased size of finance companies like Capital Growth, we can offer significantly lower rates than advances the broker can directly provide while still offering a professional and streamlined service. While this may not seem like an advantage to the broker, it is. When the realtor is happier, they are more productive and stay with the broker for longer — helping grow the brokerage.
  5. Continued Revenue Stream — Brokers enjoy the additional revenue, however finance companies like Capital Growth also offer the brokers a referral fee or commission in exchange for the business. So the broker continues to earn revenue from this service, even though they are not directly offering it.

Why do Brokerages Partner with Capital Growth?

  1. Frees up the broker’s funds to focus on growing their business, or just withdrawing more cash from the firm.
  2. Make the realtors happier — from lower fees while still receiving a quick and easy commission advance.
  3. Continue to earn revenue from this service, due to Capital Growth’s referral fee or commission. We pay between 10% and 15%, depending on the level of activity.
  4. Partner with a highly professional, efficient, and convenient firm.

Many brokers are partnering with Capital Growth in a bid to grow their core business while still satisfying their realtors and maintaining another revenue stream. Contact us today to learn more.