Commission service launches
Within two hours of the time that Steve Erger launched the Web site for the Reno office of Commission Express a few days ago, the company had fielded its first inquiry from a potential client.
The company, a franchise of Virginia-based Commission Express National Inc., operates in a narrow niche: Factoring real estate commissions for agents and brokers who need cash and don’t want to wait until the closing of a transaction.
Commission Express buys the agent’s right to a commission after a sales contract has been signed. It provides the cash, less a discount that typically runs about 8 percent, to the agent in two days or less.
When the transaction closes, Commission Express collects the full amount of the commission.
Erger said the company bases its underwriting decision on the likelihood that a transaction will close and pays relatively little attention to the creditworthiness of the agent.
A longtime banker in the Reno area, Erger launched Commission Express as a side venture along with his wife, Linda. They’re the only employees of the Reno office.
The northern Nevada office, the 40th nationwide for Commission Express National Inc., doesn’t factor other commercial receivables. Erger said the office will handle commissions for commercial real estate transactions only rarely.
The office is at 10775 Double R Blvd. The phone number is 775-241-3773.
On April 1, Nevada Gov. Steve Sisolak formally issued a “Stay at Home” directive for Nevadans and extended closures of nonessential businesses, gambling and school closures to April 30.