So you want to get into the funeral business. An undeniably profitable industry as it is something that every community will always need, it is a unique business to get into.
When you are looking to buy a funeral home, it is important to consider what finances you will need to secure it. A great way of ensuring that you have the funds is by acquiring a funeral home loan. However, this is not something that you need to take lightly. You don’t want to get yourself into debt after all. To make the process seem a little less daunting, here’s a brief list of some of the steps you can take to secure a funeral home loan. It is not a complete list by any means, so ensure that you do your research before applying for one and know everything that comes with the loan.
Finding a Loan
The first step in the process is to find a bank that will lend you the money. Extensively research online and check out the interest rates that each of the loans has, the term of the loan and any other fees they may incur along the way. Buying a funeral home is a complex process, so make sure you hire a funeral home loan specialist that knows their stuff. An example of a reliable, trustworthy and experienced specialist is Matt Manske at BSF. They will not only help you acquire a loan but also help with the buying process – advising you along every step of the process.
Check Your Finances
Secondly, ensure that you have your finances in order. Lenders will want to check that you have a good credit rating, that you have previously paid all your bills on time and to make sure that you have the money to pay the loan back. They will also look at the purchase price and see if you have the ability to finance the purchase. At the end of the day you will have to invest some of your own capital into the purchase of the funeral home – according to BSF, lenders “expect you to provide some of the capital, typically a down payment of 20%. The down payment reduces the bank’s risk and it shows the bank that you are confident enough in the business to invest your own capital”.
The Type of Person You Are
Thirdly, it’s not all about the finances. To secure a funeral home loan the lenders will also look at your character. Running a business isn’t for everyone. So they will want to ensure that you have the drive to run one and a positive attitude that will help to make your business successful in the long run – as well as being able to survive its first year of trading. The lenders will take into account two things – the businesses worth and the worth of the real estate, through determining your cash flow they will determine how much money they will lend you.