Financing for Funeral Home Businesses

Financing for funeral home businesses are easy to get approval for when the funeral home business knows the right source to contact and when the financing being sought is for growth of the funeral home business.  Funeral home business loans can be obtained for a variety reasons but they mainly fall into three specific categories.

Funeral Home Financing – Refinance

funeral home 3Funeral home financing for the refinance of an existing loan is very popular with many funeral home businesses that have not yet taken advantage of the current low market rates available today.  While rate and term refinancing of funeral home loans is common, many are taking advantage of an improving economy and higher business valuations to pull cash out with a funeral home business loan.

The cash out refinance gives funeral home businesses the ability to make repairs, upgrade facilities, buy more efficient and modern equipment and may even provide the down payment to buy out a partner or make additional acquisitions of other funeral home businesses.

Funeral Home Financing – Acquisition

Another category of funeral home financing is  acquisition financing.  Funeral home acquisitions and consolidations are happening rapidly as older operators seek to retire and a new, younger breed of service providers enter the market.

Smaller funeral home businesses can find a fast tract to growth by utilizing funeral home loans geared towards funeral home businesses that are poised for growth using an acquisition strategy.

Funeral Home Financing – Construction

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The final general category for funeral home financing is funeral home loans made for the sole purpose of constructing new facilities or adding onto existing funeral home facilities.  These loans are slightly more complex because of the added documentation required.

Funeral home financing for construction will require the funeral home business to be more involved in the process by providing drawings, surveys, permits and additional proforma data showing that the new construction or expansion of the existing funeral home facility is a worthwhile and profitable venture.

Financing for Funeral Home Businesses with Fast Closings

Regardless of the category or type of funeral home financing that needed, in order to close fast the funeral home business making application should have a solid plan in place and approach the financing as they would any other business venture.  It is critical to move swiftly to provide documents to the underwriter and to ask questions when you don’t think you have the correct answers.

Many lenders are reluctant to provide funeral home financing because they don’t see the funeral home industry as ‘sexy’ or desirable.  However, for those lenders that understand the funeral home business model, the business is seen as a necessary service that gives dignity in both life and death.  Additionally, the industry is filled with respectable and quality professionals who run clean and profitable businesses.

At Dividend America we understand and admire the small business professionals in this industry and we are honored to serve funeral home businesses with the financing that helps them provide much needed services.  For those funeral home businesses looking for growth capital, refinancing, acquisition or construction financing Dividend America Commercial Lending is a great place to start.

To learn more about funeral home financing and loans for funeral home businesses contact us by email at or call Michael Gross, President, Dividend America Commercial Lending at 404-819-4511.  Apply online for Funeral home financing.