funeral home lending

5 Pitfalls to Avoid with Traditional Lenders

By Ian Seekins, Director of Funeral Home Lending

Have you ever had one of those days when nothing seems to go your way?

Last month, I decided it was time to take down my Christmas lights. Usually, this is a quick and easy task – much faster than putting them up.

But not this year.

Every time I tugged the strand, one of the bulbs got stuck. I had to pull out my ladder, climb up, and remove it by hand. This cycle repeated over and over, turning a simple 30-minute job into a frustrating two-hour ordeal.

Although the worst-case scenario for me was merely losing time, many funeral homes face a far more frustrating ordeal when securing a loan. When working with the wrong lender, every step forward can lead to two steps back, and these funeral homes end up sacrificing a lot more than just their time.

Some lenders may lack knowledge about your funeral home’s business model. Others may not understand your cash flow or may even value your business inaccurately.

However, if you can avoid these 5 common pitfalls, you can ensure a successful lending experience that helps you achieve your goals!

1. Lenders who lack knowledge about funeral home lending

Your funeral home is unique, and you need a lender who understands your business. Unfortunately, most lending companies don’t always have a deep understanding of funeral home operations and your business requirements.

That means you would have to spend a lot of time explaining how your business works, which could draw out the process.

You deserve a partner who understands how your funeral home operates and knows the true value of your business. That way, you’ll increase your odds of getting a loan for the full amount of funding you need without having to educate your lender about the nature of your business over and over again.

2. Lenders who don’t seem trustworthy

First impressions are everything, and when it comes to choosing a lender, trust your gut and ask these questions:

– Does the lender ask good questions, trying to understand your business?

– Are their representatives friendly?

– Do they respond to your questions quickly?

– Do they have satisfied clients?

You want to find a lender who’s trustworthy, is interested in your business, and has a track record of helping funeral homes with the same goals as you.

3. Lenders with slow and complicated approval processes

Sometimes, you need funding quickly – whether it’s for an emergency repair or a time-sensitive opportunity. However, some lenders are known for their long and complicated approval processes, putting your goals at risk.

You shouldn’t have to be put on hold because of inefficient processes filled with red tape. You need a lending partner who can help you get the funding you need as fast as possible. And that comes from working with a lender who knows your business.

A partner who knows your funeral home’s financial needs can make the lending process faster and easier, with less paperwork, shorter wait times, and no extra fees.

4. Lenders who require large down payments

Imagine nearly completing your loan process and finding out your lender will fund just a portion of the loan you need. Talk about frustrating!

Even if your loan is nearly fully funded, you may not have enough cash available for the down payment to finalize the loan – forcing you back to square one.

Instead of putting your goals on hold while you save for a large down payment, find a lender who understands what your funeral home is capable of and requires little to no down payment for your loan. Because if you’re requesting a loan worth millions of dollars, funding 10-15% of that loan might feel feel like another obstacle.

5. Lenders that don’t provide long-term support

The greatest pitfall of working with a lender is the risk of not having long-term support to achieve your goals. Even if you secure a loan from a traditional lender quickly with favorable terms, they might not offer personalized support and a strategy to help your business continue to grow. This could leave you with questions and uncertainty on how to proceed with your next goal.

You deserve a lender who is committed to your success and willing to do whatever it takes to help you. Partnering with a lender who understands your business means more than just financial support; it means you get a trusted partner and advisor who can offer you the best loan option and help you create a plan.

It may even lead to a lasting partnership for years to come.

Choose a funeral home lending partner who knows and values your business.

Your funeral home deserves more than a one-size-fits-all loan. You need a lender who understands your business, values your goals, and is ready to support you every step of the way.

That’s where Funeral Directors Life (FDL) comes in.

FDL was created by funeral directors for funeral directors. With more than 20 years of experience in funeral home lending, we understand your business’s unique needs and lend exclusively to funeral businesses. Our goal is to make the lending process faster, easier, and more beneficial for you while eliminating any pitfalls that get between you and your dreams.

With our competitive program, you can:

Stay confident in your payment with a 5-year fixed rate.

Save money with no loan origination or prepayment penalties.

Secure your future with no out-of-pocket refinancing costs.

And more!

Because we work exclusively with funeral homes, your success is always our top priority. Learn how our experience, expertise, and heart for service will guide you toward a great lending experience.

Click here or fill out the form below to get started!


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