Business funding for funeral homes
Funeral homes carry year-round fixed costs, licensed staff, a vehicle fleet, a facility that must stay presentable and compliant, against call volume that varies month to month and is not something any business can plan around. Many services are paid through an insurance assignment or a preneed trust, which can take weeks to a few months to actually pay out even though the service and the costs happen immediately.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Replacing or maintaining hearses, limousines and family cars
- Facility upkeep, renovation or expansion, including embalming-room or chapel work
- Bridging the gap between the service date and an insurance-assignment or trust payout
- Cremation or embalming equipment
- Working capital through a lower-call-volume stretch
What usually fits
Products that usually fit
- Equipment financing for vehicles and cremation or embalming equipment.
- Line of credit for timing gaps on insurance assignments and trust payouts.
- Term loan for facility renovation or expansion.
- Working capital for a defined short-term gap.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A funeral home finances $70,000 for a replacement hearse and family car over 5 years at an illustrative 7-16% a year. Payments come to about $1,386–$1,702 per month, or $83,165–$102,136 in total.
A home waiting on $45,000 across several insurance-assignment and trust payouts due within 60-90 days can draw the same amount on a line of credit at an illustrative 9-22% a year; carrying it 2 months costs roughly $1,163-$1,650 in interest, far less than letting payroll or supplier payments slip while waiting.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly deposits, including the mix of insurance-assignment, preneed trust and at-need cash payments
- Typical time from service date to insurance or trust payout
- Age and condition of the vehicle fleet
- Licensing and any state or provincial funeral-board compliance items
- Owner credit and time in business
Honestly
Who this is not for
- Financing against the value of a specific preneed trust or insurance policy (that is a different, specialized arrangement, not general business financing)
- A home with no deposit history yet
- Carrying an expensive daily-debit product through what is really a multi-month insurance-payout wait
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Funeral homes funding questions
How does an insurance assignment affect getting funding?
Lenders look at your typical deposit pattern, including how much of it is insurance-assignment and trust money and how long it usually takes to arrive. Consistent timing, even if it is 60-90 days, is something they can work with.
Can I finance a new hearse or family car?
Yes, usually through equipment financing, sized to the vehicle's price, new or used depending on the lender.
Does seasonal or month-to-month call volume affect approval?
Lenders who work with funeral homes expect call volume to vary and look at a full year of deposits rather than one slow month.
Can financing be secured against a preneed trust?
No, not through the general business financing we refer. Preneed trusts are regulated separately and are not used as loan collateral in the products in our network.
Guides
Guides for funeral homes
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Where we work: all US states · all Canadian provinces
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