The advantage of a holder in due course over a simple holder of an instrument is that the holder in due course can:
1) Transfer the instrument to others, thus using it as a substitute for money.
2) Collect on the instrument even if it has been forged.
3) Collect punitive damages from a party who wrongly does not pay a negotiable instrument.
4) Collect on the instrument if the maker or drawer asserts a personal defense.
5) Endorse the instrument "without recourse" thus limiting his liability.