Funeral Home Loans

Funeral Home Loans

Usually ranked among the most difficult business finance situations for borrowers are businesses requiring specialized commercial real estate. Difficult challenges for acquisitions and business refinancing are increasingly common for funeral home mortgages.
Borrowers should anticipate that the few active local and regional banks will probably offer short term commercial financing instead of a long term funeral home business loan. The maximum percentage of value for business financing is a key finance term that can differ from one lender to another. Particularly with business loan terms for length of loan and percentage of value, it is critical for borrowers to avoid unrealistic commercial mortgage terms for funeral home refinancing or acquisition.

The fact that fewer business lenders are currently willing to offer competitive small business finance terms is a further complication for a difficult funeral home business loan. There are fewer regional and local banks offering funeral home financing compared to a few months ago. This is also true for other specialized commercial property loan situations such as golf course mortgages.

There are some serious potential problems found with funeral home mortgage loans that are not usually apparent in other commercial mortgages. When the primary goal is business refinancing for funeral home financing, it is likely to be more complicated than the original business financing for purchase. The commercial property loan valuation is usually much less than the overall business valuation for a funeral home business loan. The problem with this disparity is that many business lenders will provide a business loan that includes only the commercial mortgage loan value, and this will produce significantly reduced business financing.

For this specialized business loan category, availability of adequate lenders has shrunk. Prudent choice of a lender will be a prime factor in securing a viable funeral home mortgage. While it is not an easy task, business owners must insist on a lender with the ability to successfully complete the complex business loan process and simultaneously avoid key commercial mortgage obstacles.

For funeral home financing, there should be reasonable commercial financing fees during the early stages of the business loan process. There are a number of business lenders that have chosen to take advantage of the shortage of commercial loan choices for building, purchasing and refinancing a funeral home. Charging initial excessive fees of $30,000 and higher is a common tactic by some questionable lenders.

The use of a small business finance consulting expert should be conducive to a better understanding of difficulties to anticipate in a complex commercial loan situation. Preliminary business consulting should be considered in any serious efforts to avoid serious problems and obtain better terms since funeral home business loans are among the most complicated business financing situations.