Inheritance and Trust Advances are advances of cash collateralized by a pending inheritance which the distribution of which is being delayed in the probate system. It is not unusual for estates to be in probate for a year or even up to three years, sometimes causing duress to those beneficiaries waiting for cash distributions. With the assistance of an Inheritance Purchasing Company, a portion of the future inheritance can be pledged to secure an immediate cash advance.
Inheritance Advances are little known by many Cash Flow Consultants and represent an excellent area for marketing with little or minimal competition. Additionally, commission payouts here can be substantial since the discounts can be considerable. For institutions, this is an area of high investment risk since estate values and circumstances can change rapidly. A distribution from an estate, for example, can be challenged by an ex-spouse, liened by the IRS, or many be attacked in many other ways. Estates containing investment securities can suffer greatly in stock market declines.
Inheritance advances will be approved by the estate’s attorney so networking with attorneys whose practice involves “Family Law” is important. These are professionals that can send a great deal of business your way when the cash needs of beneficiaries are critical. You should learn how to provide a sample of an inheritance advance using your financial calculator. We have posted an example of that calculation in the calculator training area.
A Good Niche and Business Model
Focusing a business solely on inheritance advances offers several distinct advantages that can position a company for substantial growth and success in a niche market. First and foremost, inheritance advances cater to a unique and often underserved clientele who are in immediate need of funds due to the probate process. This financial product provides beneficiaries with quick access to their inheritance, helping them to cover urgent expenses, pay off debts, or invest in opportunities without waiting for the often lengthy and cumbersome probate process to conclude. By specializing in inheritance advances, a business can build a reputation as a trusted and reliable partner for beneficiaries facing financial uncertainty, thereby fostering strong client relationships and generating repeat business through referrals.
Another significant benefit of focusing exclusively on inheritance advances is the opportunity to develop deep expertise and streamlined processes tailored specifically to this market. Specialization allows the business to hone its risk assessment strategies, develop efficient processing systems, and offer competitive terms that can attract more clients. Additionally, this focused approach enables the company to stay abreast of legal and regulatory changes related to probate and inheritance laws, ensuring compliance and minimizing risks. By dedicating resources and expertise to this specific financial service, a business can differentiate itself from competitors, achieve higher customer satisfaction, and ultimately, enjoy a more stable and profitable operation.
Furthermore, the inheritance advance market tends to be less volatile compared to other financial services, such as payday loans or merchant cash advances. Inheritances are typically secured by estate assets, reducing the risk of defaults and providing a more predictable revenue stream. This stability allows businesses to plan for long-term growth and expansion with greater confidence. Additionally, the emotional and financial relief provided to beneficiaries can create positive client experiences and testimonials, which can be powerful marketing tools to attract new clients. By focusing on inheritance advances, a business can build a strong brand identity centered around empathy, reliability, and financial empowerment, setting the stage for sustained success in a specialized market.
Marketing for Inheritance Advances
As with most Cash Flow product areas, most of your leads for inheritance advances will come form your networking efforts and Facebook / LinkedIn relationships. You can get a little more “proactive” in this area. Here’s how.
- Research the probate files at the Clerk of the Court.
- Read the obituaries. Family members of recently deceased can be excellent prospects since they have just entered the probate system.
- Place classified ads under the category of “Money to Lend” or similar. Title your ad with “Cash to Heirs“, “Cash for Inheritances” or something similar
Make certain you align yourself with an institutional participant in the inheritance advance area early on. Many will share excellent marketing tips to assist you in producing in this area of opportunity.
