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    8 Replies Latest reply on Jul 19, 2009 9:39 PM by gary_banker

    Financing for a established funeral home

    knightnurse Newbie
      Hi,
      I have the opportunity to purchase a pair of funeral homes (one is the only one in a rather booming town) owned by a shirt-tail relative. It is a very going concern doingI about 180 funeral a year. I have yet to actually meet with the owner but am guessing the price will be somewhere between 1.5 and 2 million. If I sell everything I own I might be able to come up with about 600,000. I have excellent credit (795). Is there any chance of me pulling this off? What is the best route to go to get a loan if he will not carry it?

      Thanks
        • Re: Financing for a established funeral home
          LUCKIEST Guide
          Financing for a funeral home, Welcome

          Start with a Business Plan , then visit SCORE. SCORE is FREE

          Good luck
          • Re: Financing for a established funeral home
            Dr.King Newbie
            Hi knightnurse,
            My family own two funeral homes and I am a licensed Funeral Director in Georgia. If you can raise 600k plus the credit score you have it should not be a problem. Try the SBA website for the low doc loans or 7A loans. The Score counselors through SBA can help. If you get 180 calls per year that is very good if they are paying in full.

            Dr. King
            • Re: Financing for a established funeral home
              onpurpose Adventurer
              Hi Knightnurse,

              Because a relative owns the funeral homes, ask if they are willing to finance a portion of it. You may have $1.0+ in financing available there. Put down $500k and leave yourself some working capital if you can. Another option is for them to keep 25% equity, provide seller financing, and take a big part of your cash.

              Do you have business experience, especially with running a business? Are current employees willing to stay? Are some key people getting close to retirement? What potential does the business have for growth so you could pay off loans quickly and buy out the remaining equity stake.

              Another option is to find a funeral home director in another part of the state or country who might stake you a portion of the downpayment for a minority interest and first right of purchase (if you can't make a go of it). This plus your equity could qualify you for bank / SBA financing.

              I have a client who consults with around 50 independent funeral home directors around the country. He's been in the business for 30 years. I'm happy to connect you if you wishe. Drop me an email through my profile.

              Be On-Purpose!

              Kevin
                • Re: Financing for a established funeral home
                  knightnurse Newbie
                  The funeral home also comes with a large cemetary that is about 10yrs old. They also have their own crematory at the main facility which services other funeral homes in the area. I worked in a funeral home all through high school and part of college but went on to other vocations but it has always been my first love as a business. My father owned and operated a funeral home for several years and would work with me in this business. The current owners are willing to stay for as long as needed to help me in learning the management of the business. I don't know yet but I'm pretty sure they are willing to carry part of the purchase price. I have found sites on the internet that specialize in funeral business financing. Once I have the specifics I was thining of contacting one of these (NewBridge, Vineyard).
                • Re: Financing for a established funeral home
                  Dr.King Newbie
                  I hope this don't post twice I seem to be having problems getting these replys to post. Anyway my family owns two funeral homes and I am a license Funeral Director in Charge of one of them. If you can raise 600k you should be able to ge a SBA loan. Check with the SCORE counselors throught SBA as advised in the first reply.

                  Dr. King
                  • Re: Financing for a established funeral home
                    wilfin Adventurer
                    I agree with everything posted in response to your inquiry. If you need additional help please
                    contact me. Info on my company and contact info is on my profile. Thanks.
                    • Re: Financing for a established funeral home
                      phanio Pioneer
                      Hvae you talked to your local bank? Ask about their programs as well as SBA programs. If you can raise that amount for a down payment and have experience in the industry - you seem like an ideal canidate for a simple fixed term loan.

                      Business Money Today
                      • Re: Financing for a established funeral home
                        gary_banker Newbie
                        Knightnurse,

                        My name is Gary and I have been in the lending field for 15 years. I have some great lenders that might be able to help you get the funding that you need. Email me with your contact info at gary_banker@yahoo.com and i will get in contact with you to see if i can help you.

                         

                        Gary