Financing

Financing a Funeral Home Business – Overview

Banks walk a tightrope.

On the one hand, they want to make loans. They’re job is to lend money that pays them interest. They’re measured on how much they loan and how much interest they make.

On the other hand they have to manage their risk. This makes them reluctant to sell you a loan.

Why? Because they’re not sure your funeral home can service the debt or that you’re willing to invest your own assets. They don’t know if you’ve got the entrepreneurial passion and the collaborative working style to successfully make the transition from funeral director to business owner.

Before you go see a lender, you’ll need to form a clear understanding of the financial strength of the business you are buying. In particular, you’ll need to understand how much cash the business produces each month and how much of that cash is available to service your debt. This value will largely determine how much you can borrow.

And once you know how much to borrow, it’s time to prepare a package and to shop your business to lenders.

Borrowing the amount and on terms you can manage is vital to the success of your funeral home business. A business consultant with experience in the funeral industry and with financing transactions is a valuable asset to have on your side. A good consultant knows what lenders are looking for and knows how to package your application with the best probability of success.

When searching for a consultant to work with, look for someone that has a passion for their work, that knows the funeral industry, and that can identify and solve problems quickly and creatively.

If you have any questions, please feel free to e-mail Matt directly from the following link: