Sources of Funeral Home Financing
Funeral home lending is a specialty market. Fewer banks cover the funeral home industry than other small-business markets. This has been true for the funeral industry for many years. This means other sources of funeral home financing must be found.
Direct lenders are the safest route to go when seeking financing for a funeral home acquisition or a funeral home refinancing. Direct lenders do not normally charge up-front fees for reviewing a transaction. Direct lenders do not require you to sign a financing agreement with them to pursue a loan. Direct lenders may charge an application fee for submitting your loan for approval and they may ask you for a good-faith deposit once the loan is approved to cover any out of pocket expenses for third party reports such as a business appraisal, commercial real estate appraisal and an environmental inspection of the commercial property. Typically, the monies you pay into a direct lender during the approval process will go directly toward your down payment when the loan closes. Please verify this fact when dealing with any lender.
In this confusing market it’s easy to see why borrowers want to be well-educated about obtaining a loan and often seek the services of a reputable intermediary.