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What I Wish Everyone Knew About Commission Based Business



Commission based business is the high-risk business, the positive side of this business is profits are also high without any hard work the only thing is if you have excess money to investment. this is the best way to earn money within the short period for employees and business individuals.

4 Types Of Commission Based Business


  1. Finance Business 
  2. Discount Business
  3. Chit fund Business
  4. Daily Chit Fund Business

Letus discussing topics of commission based business one by one


1.Finance Business: This is the best commission based business. many corporate finance companies and banks are giving the loans and finance. but, some small business people are borrowing money from individuals finances. this happens for many reasons. one of the reason is banks and finance companies are do the long process to approve the loan in some cases it is not possible to approve the loan.

Finance Businesses Are Four Types

1.Daily Finance. Financing the money to daily base small businesses like small shops, daily labours,..etc

For this finance rate of interest are very high may be 30-50 % per annum.

Repayment will be daily base only. here debtor will be paying interest and outstanding due at the same time.

2.Monthly Finance. The rate of interest will be 20-40 %. Here debtor pays interest monthly wise outstanding will be constant you to pay the outstanding amount at a time if you want to close the finance.

3.Vehicle Finance. Corporate companies are giving finance even there is a chance to run vehicle finance.

The rate of interest will 14-18 %. repayment will monthly EMIs interest and outstanding will pay on EMI.

4.Gold. Finance on gold this was safe for the commission based business people because the security is gold is equal to cash. if customer defaults to repay the money.

The rate of interest will low when compare to all above all the finance systems may be 6-10% only it is very cheap.

2.Discount Business:

Most of the people do not know what is the discount business? discount business is also one type of commission bases business is an adjustment the money for a short period. This commission business mostly in between companies and transporters. How? the company does not pay the money immediately when the transporter gave service to a company. so, here the commission agent will pay the money to transporter with some commission.

The rate of interest will be 6-10% per month.

3.Chit Fund Business: This business suitable for employees as a part time job. the chit fund business based on monthly the will be commission will 3-5% per month.

4. Daily Chit Fund Business: This is also just like monthly chit fund but it will be in short period chits. payment will on daily basis mostly suitable customers are shops, bakery, restaurants,..etc.

The rate of commission will be very high in daily chit fund business compare to all the above is 15% per month.

Commission Agent Follow This Steps To Successfully Organise The Business


  1. The own house is mandatory for the debtor.
  2. KYC documents 
  3. Government employee should be necessary
  4. Promissory note with debtor PAN card signature
  5. 3 Empty Cheques
  6. Financing above 10 lakhs collateral compulsory

Disadvantages Of Commission Based Businesses 

Commission based businesses are heavy risk businesses because some of the debtors default to pay the money back that are a headache to commission agents.


I met many commission agents and talked them about advantage and disadvantage of commission based businesses briefly after that I written this article. Please feel free to comment and query thank you.


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