What is a Commission Purchase Agreement?

Access to capital is an essential need of every business.  When it comes to commission based businesses, getting access to enough cash-flow to cover all of your expenses and obligations isn’t always easy.  Banks do not like to make short term loans and are often hesitant to make longer loans to insurance agents due to fluctuations of cash flow.  This is where a commission purchase agreement from Victory Funding can be of benefit.

A commission purchase agreement is the sale of a portion of your future commissions for a flat, pre-negotiated rate and term.  It is a business to business transaction and therefore not a loan.  This means there are no restrictions on how you may use the money.   Payment is collected in equal installments over the negotiated term (usually 6-12 months), and once the term is reached you are under no further obligation.