How Does a Commission Advance Work in Real Estate?

For many real estate agents, the challenge isn’t how much you earn, it’s when you get paid.

Commission income is earned over weeks or months, but expenses like marketing, staging, MLS dues, rent, and taxes arrive on a predictable schedule. A commission advance exists to help bridge that timing gap.

But not all commission advances work the same way.

In this guide, we’ll explain:

• How commission advances work in real estate
• How Tongo’s commission advance differs from traditional models
• Why a line-of-credit–style approach gives agents more flexibility and control

What Is a Commission Advance in Real Estate?

A commission advance allows a real estate agent to access a portion of their earned commission before a deal officially closes.

Instead of waiting for closing day, an agent can use a commission advance to:

• Cover business expenses
• Smooth cash flow between closings
• Reinvest in listings or marketing
• Avoid relying on high-interest credit cards

Once the transaction closes, the advance is repaid directly from the commission proceeds.

At its core, a commission advance is a timing solution, not additional income.

How Traditional Commission Advances Typically Work

Most traditional commission advance providers operate on a deal-by-deal, one-time transaction model.

That usually looks like this:

1. The agent submits a deal under contract
2. The provider reviews the transaction
3. A one-time advance is issued
4. A fixed fee is charged
5. The advance is repaid when the deal closes

While helpful in certain situations, traditional advances often:

• Feel transactional rather than supportive
• Offer limited flexibility
• Charge higher or less transparent fees
• Require starting from scratch each time

This is where Tongo’s approach is different.

How Tongo’s Commission Advance Works

Tongo offers commission advances through an ongoing account designed for commission-based professionals, structured more like a line of credit experience than a one-off loan.

Here’s how it works:

1. Open a Tongo Account

Agents create a Tongo account once.
There’s no cost to open an account and no obligation to use it.

Your account stays open and ready,  even if you don’t submit deals right away.

2. Submit Application Per Deal 

Each time you have a deal under contract, you submit that specific deal through your Tongo account.

For each deal, Tongo:

• Reviews the transaction details
• Determines eligibility
• Sets a credit limit

This ensures advances stay tied to real, earned income, not assumptions or personal credit alone.

3. Draw What You Need, When You Need It

Once approved for a deal, you can transfer funds directly to your checking account, often as soon as the next business day.

Agents commonly use Tongo to cover:

• Marketing and advertising
• Staging and photography
• MLS and brokerage dues
• Client expenses
• Living expenses between closings

You only take what you need, and only pay for what you use.

When the deal closes, Tongo is repaid directly from the commission.

Why Tongo Feels More Like a Line of Credit Than a Traditional Advance

Even though agents apply per deal, Tongo is structured to feel ongoing and flexible, not transactional.

Key differences include:

• Pay Only When You Use It

There’s no cost to keep your account open. Fees apply only when you draw funds.

• For example: Let’s say you’re approved for up to $5,000 on a deal, but you only actually need $3,000 right now.
  
  • Traditional per-deal advance: If you take the full $5,000, fees are typically calculated on the entire $5,000 (because that’s what you advanced).
    Illustrative example: at a 10% fee, you’d pay $500 in fees, even if you realistically only needed $3,000.
  • Tongo (pay only for what you draw): You can be approved “up to $5,000,” but choose to draw $3,000. Fees apply only to the $3,000 you draw, and the unused $2,000 costs $0.
    

• Transparent, Predictable Pricing

Tongo’s pricing is competitive with credit cards, and fees are generally lower than other commission advance companies. 

• Built for Commission Income

Unlike banks or personal credit cards, Tongo is designed around how commission income actually works.

When Does a Commission Advance Make Sense?

A commission advance isn’t about overspending or rushing deals.

It’s about maintaining stability and momentum when timing doesn’t line up.

Agents often use commission advances to:

• Avoid carrying balances on high-interest credit cards
• Keep marketing consistent during slower months
• Reduce financial stress between closings
• Run their business with more confidence

Used intentionally, a commission advance becomes a planning tool…not a last resort.

Commission Advances vs Credit Cards

Many agents rely on personal credit cards to manage cash flow. But credit cards:

• Accrue compounding interest
• Impact personal credit utilization
• Aren’t tied to future commission income

A commission advance through Tongo is:

• Repaid directly from commissions
• Designed specifically for agents
• Aligned with deal timing, not monthly billing cycles

The Bottom Line

A commission advance helps you access income you’ve already earned when timing matters.

Tongo modernizes this concept by offering an ongoing account with deal-by-deal flexibility, transparent pricing, and repayment tied directly to closings.

It’s not about borrowing more.
It’s about bridging gaps smarter.

Submit your deal at https://www.gettongo.com