Acquisition, Expansion, Refinancing & Equipment Loans for the Funeral Industry
The question comes about nearly every day in every business. Where do I get money to grow my business? Given the nature of the funeral industry and the manner in which funeral homes operate, the traditional source of funds, such as your local bank may not be the answer.
There are a number of specialty institutions that lend on a regular basis to the death care industry. These lenders understand the business; typically are not concerned with your assets and typically lend on a cash flow basis.
Speaking of cash flow, I am aware of a new "At-need" financing program that is being developed in the industry that will help with cash flow. As a business owner this should be your main focus, getting more cash in the door fast. Businesses often lose site of the fact, it's not how much money you bill out but how much money you collect. In my experience, it is just as hard to collect money as it is to create new business. Think about the time you spend chasing down the people that owe you money and often the result is non-payment � which also multiples the loss when you consider your time and effort.
To better understand how to get a loan for your business you need to understand the criteria lenders consider. Credit history, assets, experience and cash flow of your current operations are all taken into account with a traditional lender such as a bank. If everything is not in line your chances of getting a loan from a bank are not very good. However, if you consider a lender who knows and understands the funeral industry, your chances of getting a loan are much higher. I am aware of a few of these specialty institutions that offer free valuations on your funeral business and free cash flow analysis to see how likely you are to receive a loan based on your current operation. Loans are available for acquisition, expansion, refinancing and equipment purchases (including vehicles).
There are financing programs available in the industry for equipment that fund the purchase of new equipment within 48 hours. All you have to do is fill out an application and show you have been in business for two or more years. You will typically automatically be approved for purchases up to $75,000! Wow, what a change from the past.
With the advent of the internet and availability of financial data the turnaround time for loans has been cut drastically and you can receive money fast, real fast. So depending on your needs and the current state of your business or the business you want to acquire, a specialty lending institution may be your best option.
Before walking into your bank and asking for a loan for your funeral home I suggest doing some research with specialty lenders. Get a free valuation and cash flow analysis. Typically, you will find the information you gain will better educate you in determining the best option for getting a loan and in most cases it will not be with your local bank.
For more information contact:
President of Recall Media Group, LLC (www.RecallMediaGroup.com) owners of FuneralHomes.com