When you file your taxes, the IRS will give you a refund to compensate for any taxes you overpaid during the year. However, you don’t instantaneously receive that money — you have to wait until the IRS sends it.

If you’d rather get your refund cash now, you can get a tax advance loan (also known as a refund advance loan). This is a short-term loan you can take against a portion of your estimated tax refund, and it’s typically offered by your tax preparation service right after you file.

How does a tax advance loan work?

Usually, you can expect the process to be the following:

1. To get a tax advance loan, you’ll need to file your taxes with the preparer that provides the loan.

2. The tax preparer will review and submit your application to the tax bank that they are partnered with. The tax bank will review your tax return and they may look at your income and credit. Because your tax refund secures these loans, you usually will get approved — but it’s not guaranteed.

3. If you’re approved, you will often get the funds deposited on the same day.

4. The loan amount, as well as any additional charges, will be deducted from your tax refund. The tax bank will deposit the remainder of your tax refund to your account (which will be the checking account you’ve provided).

5. If your tax refund ends up being smaller (for example: you have an offset or tax debt) you may end up owing a balance. Ask your us about the potential terms of repaying it.