Real estate is a highly volatile business. When the general economy is going strong, the real estate business flourishes. But when the economy starts sinking, the real estate sector tanks too. Income gets reduced or, in the worst-case scenario, stops flowing in entirely. Unfortunately, the expenses do not reduce in the process.
Moreover, Real Estate Agents have to pay the broker fees, license fees, real estate board membership dues, association fees, insurance fees, taxes, and other membership fees, business and marketing fees, referral fees, and there would also be Continuing Education fees.
And these are only related directly to their profession. There would also be multiple subsidiary costs like office supplies and expenses, transportation fees, phone and Internet bills, expenses from client dealings and open houses, IRA deductions, etc.
If you are a broker, you not only have to pay for all of the above but also pay rent for office space, office maintenance, payments to agents under them, franchise fees, and multiple other expenditures that come with running a business.
However, income is not steady, even in good times. After all, there is no guarantee that the client you are serving will finally make the purchase. Yet, you cannot pull back on any expenses on them. Moreover, the real estate business often runs on word-of-mouth. If your rival wins a deal over you, there is every chance the client will recommend them over you too.
A realtor, thus, might be facing financial burdens at any time. After all, running a commission-based business means that either you will abruptly gain a lot of money on a successful sale or have to sit dry until that happens. It is for those dry spells that a little financial push can keep the real estate business moving, especially a small one.
We at Alternative Funding are dedicated to helping with Small Business Loans to Real Estate Businesses. We will use our years of experience to help you choose the most suitable resource depending on your need. Contact us today for your FREE business funding consultation!
The media has always depicted law firms as glitzy dreamlands and lawyers as rolling in cash. Reality is quite far from that. Law firms operate by setting up balance sheet accounts to collect advanced client costs from their clients. However, these accounts may be settled a long time after the costs are accumulated. It can take months or even years to clear the entire sum.
But when it comes to soft costs, lawyers and law firms have it bad. They may face pushback or even outright protests from clients when it comes to these expenses. However, these costs do amount to substantial amounts over the years and unless the money is gradually accrued, it can take a toll on their business.
A positive bankroll, but more importantly, healthy finances, are essential for a law firm to keep operating smoothly. There are multiple expenses, like rent for office space, wages of lawyers, paralegals, and other staff, furniture and stationery costs, monthly bills, court expenses, and even a lot of overhead costs.
Plus, contingency funds for unforeseen events must also be set aside. A lot of law firms often also pay off law student debts of their recruits, albeit as loans. But unless that employee receives their wages, they cannot pay it off either.
Hence, it is not unnatural for law firms, especially smaller ones, to often run into financial problems. Even when their budgeting is solid, cash crunches can appear. If the finances of a law firm are not restored when the deficit is still low, it can even run into bankruptcy. A little help can go a long way for them and help them regain their financial footing.
That is why we at Alternative Funding provides Small Business Loans for Lawyers and Law Firms to cover their expenses while they are still waiting for their fees to be paid. After all, the expenditures will not wait for the client to pay. We have a range of business financing solutions for you to choose from, according to your needs. Contact us today for your FREE business funding consultation!