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When the real estate market took a downturn in 2024, and home sales fell to a 30-year low, I had a usually top-selling solo real estate agent come to me for financing advice.
Her deals had slowed, but her business expenses kept coming: marketing, office rent, lead-generation services, brokerage desk fees, MLS membership costs, and more. What could she do to keep her business afloat until things picked back up?
By nature of the commission-based industry, most real estate agents have unpredictable income. Even top sellers have dry spells. What she needed wasn't a long-term or mortgage-style loan, but a flexible source of working capital to use as needed and pay back fairly quickly.
At Clarify Capital, my team and I were able to save her the pain of exploring an overwhelming number of options. In just a couple of weeks, we helped her connect with several top lenders and secure a business line of credit.
This wasn't her only option, but it was the best fit for her. My team and I have helped hundreds of small to midsize businesses (SMBs) figure out their options and get funded, including real estate agents. I'll walk through the most commonly utilized financing options by those in this particular industry, what the most common expenses real estate agents tend to need capital for, and how to apply today for financing if you're ready.
| Best for | Typical amount | Typical term | Rate / estimated cost | Speed to funding | |
|---|---|---|---|---|---|
| Business line of credit | Bridging commission gaps and covering marketing and fees between closings (a draw, repay, repeat system) | $5K to $5M revolving | 6 to 36 months; payments weekly or monthly | APR starting at 6%; only pay interest on what you draw | As fast as same day once approved |
| Term loan (short or long-term) | A defined one-time investment, like a team hire or a CRM and lead-generating system | $10K to $5M | Can do short-term loans or long-term loans | APR from 6% | As fast as same day |
| SBA 7(a) loan | The biggest moves (acquiring a brokerage or buying an office) when you're willing and able to wait for the lowest rate | Up to $5 million | Up to 10 years (working capital, equipment) or 25 years (real estate) | About 9.75% to 13.25% APR (SBA caps the rate at the prime rate plus 3.0% to 6.5%; prime is 6.75% as of June 2026) | As quickly as two weeks (typically 30 to 90 days) |
What Real Estate Agents Use Loans For Most
Real estate isn't all about open houses and Zillow listings. There are several parts to the job that few people talk about; things that real estate agents have to invest in to have long-term success.
The National Association of Realtors says that its members spent a median of $8,010 on business expenses in 2025. These are the five areas real estate agents tend to need help in covering, and which financing options I think are best suited to each.
Marketing and Lead Generation
To keep your pipeline full, you'll want to keep a constant investment in marketing efforts such as Google ads, social media advertising, business cards, direct mail and email campaigns, personal websites, and more. You'll also likely want to buy into some lead generation services (like Zillow Premier Agent, Realtor.com, BoldTrail, etc.).
My financing recommendation: a business line of credit or a term loan
A business line of credit (LOC) is designed for borrowing cash. It gives you access to a pool of funds which you can draw from as needed, pay back, and then re-draw from continuously. You only pay interest on that borrowed portion, not on the unused credit. Instead of relying on a personal credit card for expenses like these, a business line of credit keeps your business and personal finances separate.
A term loan is a loan that's given as a lump sum of money to be paid back over a specific repayment period (whether it's a short-term or long-term loan will determine this) at a set interest rate. Short-term loans are often more costly due to shorter terms and faster access, while long-term loans tend to offer lower interest rates but require a greater commitment.
Brokerage Fee Bridge
Whether or not you closed on anything this month, you may owe monthly fees (depending on your brokerage), like:
Desk fees (monthly charges for office resources and administrative support)
Franchise or brand fees (fees for using a national brokerage's name, marketing, and technology)
Errors-and-omissions (E&O) insurance premiums (professional liability insurance that protects you against claims of negligence)
My financing recommendation: a business line of credit
Team Build-Out
When you're in times of growth, you may find that you can't handle every client, showing, and administrative task alone. You may need to hire (or keep paying if you already have them):
A buyer's agent
An inside sales agent
A transaction coordinator
My financing recommendation: a term loan or a business line of credit
Brokerage Acquisition
Another area where agents need capital is when they're buying a retiring agent's client book, acquiring a brokerage, or purchasing their own office real estate for the first time. For such large moves, you usually need a more substantial loan. A business line of credit won't cut it.
My financing recommendation: an SBA 7(a) loan or a term loan
SBA 7(a) loan is a flexible and partially government-guaranteed loan. They can go up to as much as $5 million and typically require you to put about 10% down. They're known for their great rates and long repayment terms, and are typically quite accessible in terms of qualifying.
Other Miscellaneous Cash Gaps
Think about this: 71% of real estate agents did not close a transaction in 2024.
Income in this industry is always up and down with the market, and you have to plan for how you'll cover your costs during the months without a check. Median income, according to the National Association of Realtors, can swing from as low as $8,000 in an agent's first two years to nearly $80,000 after 16+ years.
A note on credit:
As you can see, I recommend that a lot of real estate agents use business lines of credit to cover many of their smaller cash gaps. A big mistake many agents make is putting business expenses on a personal credit card, which is distinct. Mixing the two caps your borrowing power, puts personal assets on the line, and means your business never builds its own credit. Setting up a business bank account and an entity, then borrowing in the business's name (a business line of credit, not a personal card), will separate the two and protect you and build the track record lenders look for.
Why Real Estate Agents Work With Clarify
Clarify Capital's 5.0 Trustpilot rating is the highest in the industry, and we've placed more than $1 billion across 50,000+ small to midsize businesses (SMBs).
Clarify matches you across 75+ vetted lenders and can get you a written offer in as quickly as 24 hours.
Every applicant works with a U.S.-based lending advisor (not a chatbot or a call center) from application through financing.
Minimum Qualifications
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
How To Apply for Financing with Clarify Capital
Step 1: | Step 2: | Step 3: |
|---|---|---|
| It takes about two minutes. You'll need your business's legal name, EIN, time in business, monthly revenue (or projected revenue), requested loan amount, owner contact information, and a credit authorization. Apply here. | A U.S.-based Clarify Capital lending advisor reviews the application, runs a soft credit pull (no impact to your score), and requests 3 to 4 months of recent business bank statements. For acquisition financing, expect a deeper request: trailing 12 months profit and loss statement (P&L), balance sheet, tax returns, and the target company's financials. | Clarify works with 75+ vetted lenders and matches your profile to the lender most likely to approve you at the best terms. Approved files often get a written offer the same day. You can sign electronically, complete the ACH setup, and the funds will hit the business bank account as soon as that day. |
Fund Your Business, Not Just Your Next Deal
Above all, here's what I want you to take away: Commission-based income in the real estate industry is an up-and-down rollercoaster. The right approach to getting financing structured for those types of bumps. My team and I at Clarify can help you explore the best options, including business lines of credit and terms loans.
Get started and apply today.
Frequently Asked Questions
Here are answers to questions I often get about financing for independent but established real estate agents.
Can a Real Estate Agent Get a Small Business Loan?
Yes. Your ability to qualify will be based on the business's revenue, bank statements, and financial history. With Clarify, we require applicants to have been in business for at least six months and have steady deposits.
How Much Is the Monthly Payment on a $50,000 Business Loan?
Let's say for example purposes that you borrow the $50,000 at a 10% APR. If paid over a three-year term, you'll pay $1613 a month. If you have a 10-year loan at the same rate, your monthly payment would be $661. Shorter repayment terms mean a higher monthly payment but less total interest.
How To Qualify for a $200,000 Business Loan?
To qualify for a loan of this size, you should expect to show time in business, revenue, and credit profile of your business. Larger amounts generally mean more scrutiny and documentation.
How Hard Is It To Get a $1 Million Business Loan?
It's doable if your business is well established and has a strong financial history. This amount will usually mean you need an SBA 7(a) loan. Expect to be able to show strong financials, time in business, and a clear plan for the use of the funds.
Should You Use Business Credit or Personal Credit as a Real Estate Agent?
I always suggest you separate them and use business credit for business expenses, and personal credit for personal expenses. I know it can be tempting to just put everything on one card or account, but doing this will protect your personal assets, raise your business borrowing power, and make accounting at the end of each year much easier.
Can I Secure Financing in Between Closing or During a Slow Market?
Yes, and I'd say that's exactly where something like a business line of credit comes in handy. You can draw what you need as you need it, and pay it back when you close a deal.
Bryan Gerson
Co-founder, Clarify
Bryan has personally arranged over $900 million in funding for businesses across trucking, restaurants, retail, construction, and healthcare. Since graduating from the University of Arizona in 2011, Bryan has spent his entire career in alternative finance, helping business owners secure capital when traditional banks turn them away. He specializes in bad credit funding, no doc lending, invoice factoring, and working capital solutions. More about the Clarify team →
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