Quick Comparison: Advance vs. Loan
While both provide immediate cash, an inheritance advance and a bank loan are fundamentally different. A bank loan is a debt you are personally responsible for repaying with monthly interest. An inheritance advance is the sale of a portion of your future inheritance; it is non-recourse, requires no credit check, and has no monthly payments. Repayment comes directly from the estate, not your pocket.
| Feature | Inheritance Advance | Traditional Bank Loan |
|---|---|---|
| Repayment | Paid by Estate | Paid by You (Monthly) |
| Credit Check | None Required | Strict Requirements |
| Interest | None (Flat Fee) | Compounding Interest |
| Personal Risk | Zero (Non-Recourse) | High (Debt/Credit Score) |
If you are waiting for an inheritance, you already know that probate can take an average of 17 months. When pressing financial needs arise, your first instinct might be to walk into a bank and ask for a loan. However, for many beneficiaries, a bank loan is either unavailable or carries significant long-term risks that an inheritance advance avoids.
The Challenges of Bank Loans
Banks typically offer two types of personal loans: secured and unsecured. Both come with hurdles for heirs:
- Collateral Requirements: Secured loans require you to pledge an asset (like a car or existing home). If you can’t pay, the bank seizes the asset.
- Credit Score Barrier: Unsecured loans require a near-perfect credit score. If you are currently struggling with debt while waiting for probate, you may not qualify.
- Personal Liability: If the estate takes three years to settle instead of one, you are still stuck making monthly payments. If you miss one, your credit score is damaged.
Why an Inheritance Advance is Different
The most important distinction is that an advance is NOT a loan. It is a “non-recourse assignment.” Here is why that matters for you:
1. No Monthly Payments
With an advance from InheritNOW, you don’t have to worry about a “due date.” We wait for the estate to close, however long that takes. There is no ticking clock and no monthly bill added to your expenses.
2. Approval is Based on the Estate, Not You
We don’t care about your credit score or your employment history. We focus on the value of the estate assets and your legal standing as a beneficiary. If the estate is solid, you are approved.
3. No Risk of Debt
If the estate ends up having less money than projected (due to taxes, unknown debts, or legal fees), InheritNOW takes the loss. You are never personally liable to pay back the difference. This is a level of protection no bank will ever offer.
Which is Right for You?
A bank loan might make sense if you have excellent credit and prefer a long-term repayment structure. However, if you want fast access to funds (often within 24 hours) without taking on new debt or risking your credit, an inheritance advance is the superior choice.
Frequently Asked Questions
No. Because it is a purchase of assets and not a loan, there is no credit inquiry and no reporting to credit bureaus. It has zero impact on your credit rating.
On paper, a bank’s interest rate may look lower than an advance fee. However, when you factor in loan origination fees, compounding interest over a long probate period, and the risk to your personal assets, many heirs find the flat-fee advance to be the more predictable and safer financial move.
Absolutely. Most of our clients choose an inheritance advance specifically because they do not want to—or cannot—meet the strict income and credit requirements of traditional lenders.