Business Loans for Funeral Homes

• Get financing for your funeral home business.
• Streamlined process for funeral businesses in search of capital.

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Funeral Home Loan Options

Operating a funeral home business is harder than ever before. With the increasing cost of goods and services, it can be difficult to keep your head above water – let alone make a profit. The big banks aren’t always willing to help small businesses like yours, but we are.

At Advancepoint Capital, we understand that funeral directors have unique financing needs, and we’re here to help, as we have extensive experience in providing financing to funeral homes. We offer a variety of funeral home loan products, including working capital loans, funeral equipment financing, and merchant cash advances. We also offer lines of credit, which can give you the flexibility to cover unexpected expenses or take advantage of opportunities as they come up.

No matter what your needs are, we can tailor the right loan solution to fit your financing needs. We understand that time is of the essence when you’re running a funeral home, so we make the process as quick and easy as possible to find the right business financing. Contact one of our success team members for more details on how we can solve your unique needs and confidently guide you through the process.

Get Started Today

Get Started Today

AdvancePoint Capital makes the loan application process a simple, straightforward experience.

What are Business Loans for Funeral Homes?

If you operate a funeral business chance are you are going to need capital at some point or another. Whether is be for working capital, purchasing equipment, or a business expansion, business loans are the source of capital for many of these needs. The business funding products in the market vary greatly with different features terms and rates. The most common are business term loans, lines of credit, equipment financing and SBA loans, but there are many more to chose from depending on your need.

How does Business Loans for Funeral Homes Work?

At Advancepoint Capital, we understand that funeral directors have unique financing needs, and we’re here to help, as we have extensive experience in providing financing to funeral homes. We offer a variety of funeral home loan products, including working capital loans, funeral equipment financing, and merchant cash advances. We also offer lines of credit, which can give you the flexibility to cover unexpected expenses or take advantage of opportunities as they come up.

No matter what your needs are, we can tailor the right loan solution to fit your financing needs. We understand that time is of the essence when you’re running a funeral home, so we make the process as quick and easy as possible to find the right business financing. Contact one of our success team members for more details on how we can solve your unique needs and confidently guide you through the process.

Business Loans for Funeral Homes

Long-Term Business Loans

Long-Term Funeral Home Business Loans

Long-term loans are great for business expansion or renovation of a funeral home business because costs are high for the project and the funeral home will need years to repay to get affordable payments based on current revenues.

Short-Term Business Loan

Short-Term Funeral Home Small Business Loans

A short-term business loan may be a great option for an existing funeral home that may have credit, debt, or other financial impairments to traditional business loans.

Business Line of Credit

Business Line of Credit for Funeral Homes

A line of credit, once in place, is a great option when you need to draw money on demand without going through the approval process of applying for a business loan.

SBA Loan

Small Business Administration [SBA] Loans for Funeral Homes

SBA loans come with attractive rates and terms and are considered conventional financing. The SBA loan process will take time as they have higher standard requirements than other business financing options. The SBA loan review includes extensive paperwork and takes into consideration business debt, unlike some other options. If you have a qualified small business it's worth the process and waiting to get the right loan.

Merchant Cash Advance

Merchant Cash Advance

Merchant cash advances are not loans, but an advance of future receivables of the funeral home. Unlike loans, the advance is repaid by a set portion of future credit card processing so it affords the flexibility to sales that a small business loan payment does not.

Business Credit Cards

Business Credit Cards for Funeral Home Owners

Every funeral home business should have a business card as a backup to unforeseen purchases or expenses. With credit cards, you only pay interest on an outstanding balance. A great addition to your financing toolbox and expand your options.

What is an SBA 7(a) Loan for a Funeral Home?

The most popular type of SBA loan is called the SBA 7 (a). This loan is the work horse of the SBA product line in that it can be used for working capital, renovating a funeral home, refinancing the funeral home, or purchasing a new building to name a few uses.

How Does SBA 7(a) Financing Work for Funeral Homes?

The SBA 7 (a) has fixed rates and terms and is a term loan and not a line of credit. The SBA sets the guidelines and provides a guarantee up to 75% to SBA approved lenders who originate and service the loans.

Highlights:

  • Loan Amounts- up to $5,000,000
  • Maturity- 5 to 10 years, (with real estate up to 25 years)
  • Interest Rates-Less than 7 years: $0-$25,000 prime + 4.25%, $25,000-$500,000 prime plus 3.25 , Over $500,000 Prime + 2.25; More than 7 years term: $0-$25,000 prime + 4.75%, $25,000-$500,000 prime plus 3.75 , Over $500,000 Prime + 2.75

What are the advantages of an SBA 7(a) loan for a funeral home?

  • Construction- The ability to raise capital for construction and renovations.
  • Purchase equipment- The ability to purchase costly larger pieces of equipment and machinery.
  • Working Capital- Various daily business operational needs.
  • Acquire a new building- SBA 7(a) loan can be used to purchase a commercial property.
  • Business Acquisition- SBA allows borrowers to get financing with as little as 5% down, with up to 90% financing allowed, and a 5% seller note.

How to apply for an SBA 7(a) Business Loan for a Funeral Home

The application process is significant, after all it is the federal government who facilitates the SBA loans. The following information is needed to apply.

  • Application- Comprehensive and detailed application that covers both business and personal information about the business owner(s) of the funeral home.
  • Personal Financial Statement-SBA has a personal financial statement form 413
  • Business and Personal Tax Returns- 2 to 3 years will be required
  • Business Financial statements- Profit & loss, balance sheet, accts receivable/accts payable
  • Business Bank Statements-requires 6 to 12 months, sometimes more upon request
  • Business Debt Schedule- A list of all debts the business currently has.
  • Other Business related documents upon request

For more information, visit advancepoint's SBA loan page.

Why Do You Need a Funeral Home Business Loan?

Why Do You Need a Funeral Home Business Loan?

There are a number of reasons you might need a funeral home business loan to operate a successfully run funeral home. Perhaps you need to purchase new equipment, or you want to expand your funeral home facility. Maybe you need to take advantage of an opportunity that’s come up to purchase another funeral home, or you need to cover unexpected expenses. Whatever the reason, we can help find the financing.

Working Capital

A working capital loan can give you the funds you need to cover day-to-day expenses a funeral home may contend with, such as payroll, inventory, new equipment, or marketing. This type of loan is especially helpful if you’re experiencing a slow period or you have seasonal fluctuations in your small business.

Business Needs

There are a number of other reasons you might need loans for your funeral home business. Perhaps you want to repave your funeral home parking lot, or you need to make renovations to your funeral home. Maybe you want to add new services, or you need to purchase a fleet of vehicles. Whatever your needs are, we can help you find the right funeral home loans.

Inventory

If you need to purchase inventory, we can help. We offer inventory funeral home financing, which is a type of loan that allows you to finance the purchase of an inventory of caskets for your funeral home. This can be helpful if you need to make a large purchase, or if you want to take advantage of a sale on products.

Infrastructure Improvements

Improving and modernizing your existing commercial real estate is a great way to attract new business and grow your funeral home. We offer a variety of loans for funeral home infrastructure improvements, such as equipment loans, lines of credit, and merchant cash advances.

Marketing/Advertising

Advertising for a funeral home can be expensive, but it’s a necessary part of doing business. If you need to increase your marketing budget, we can help find the financing. We offer loans for marketing and advertising, which can give you the purchasing power you need to reach a wider audience.

Pros' and Con's for Financing your Funeral Business

Always consider the benefits and the downsides to any business financing. Business financing can make all the difference in the world, but you must weigh the risk with a proper profit & loss breakdown to make sure you can afford the payments.

Pro's

  • Raises capital for important needs without depleting cash reserves
  • Flexibility to expand the business through financing
  • Builds credit for the funeral business

Con's

  • Increase debt on the balance sheet
  • Interest costs & Fees
  • Financial risk- debt payments could become counter productive to the funeral homes success.

Apply For Your Advancepoint Loan Today!

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Qualifying for a Funeral Home Business Loan

Funeral home loan starts with a conversation with a business finance specialist to go over your needs and basic qualifications. If a potential business funding product is suggested, you will need to fill out an application with all pertinent information about the business and business owners. You will then also submit the necessary documentation along with the application for review and consideration. Once underwriting reviews they will issue an approval or denial. The business finance specialist will go over offers terms and conditions for you to consider. If acceptance of an offer, an agreement will be issued for signature and final stipulations requested for funding.

The following are a few factors involved in qualifying for a funeral home loan such as -

How Old is Your Funeral Home?

The age of your funeral home will be a factor in the type of funeral loan you qualify for. If you're a new funeral home that may lead to other loans than an older and more proven funeral home which could qualify for a traditional bank loan or SBA loan. If you are a new funeral home you may need to seek financing from a private lender.

What is Your Cash Flow Like?

Your funeral home’s cash flow will be a determining factor in the type of loan you qualify for. If your funeral home has strong and consistent cash flow, you'll have an easier time qualifying for a loan. If your funeral home’s cash flow is weak or unpredictable, you may need to consider financing through alternative lending options.

Do You Have Any Business Debt?

If you have existing funeral home financing, it may need to be paid off by refinancing before you can qualify for a funeral home loan. SBA loans are typically not available to funeral homes with overextended debt, but funeral home owners can get other types of conventional financing even if they need some extra help with the lending process.

How to apply for a Business Loan for my Funeral Business

  • Education and Research- The application process starts with educating your self to what products, rates, terms are available in the business funding market place. This will include investigating business loan originators such as banks, credit unions, approved SBA lenders, business loan brokers, online business lenders, merchant cash advance providers and others.
  • Selecting a Business Loan Originator- Consider the reputation, product offers, rates and terms of various originator's and chose which ones best fit your needs and qualifications.
  • The Initial interview - Always discuss with various business loan originators your qualifications, needs and product availability to determine who and what to apply for.
  • Take Application - Apply with the originator(s) of choice and product offerings as well. The application will require both business and personal information of the business. Supporting documentation will also be requested as part of the application based on qualifications and products as part of the pre-qualification process.
  • Receive Offer(s) - All offers should be delivered in the form of a term sheet and disclosures breaking down product, features, terms and conditions.
  • Shop, Compare and Save - If you want to get the best product and terms you need to compare and shop your offers. Leave no stone unturned to get the best deal.
  • Select Offer - Once you have done your homework, you can select the offer that best suits you. Expect to have to sign an agreement and providing closing conditions before you receive final approval to fund.
  • Business Funding - After underwriting has cleared all conditions and verifications, as well as set up repayment process, your funeral home is then funded within 24 hours!

Frequently Asked Questions