Many funeral homes and cemeteries have heard of funeral funding. However, some of these facilities are hesitant to use these services mainly due to a lack of knowledge of the benefits and increased cash flow that can be obtained by using a funeral financing company. They may fear that it will have a negative impact on their available resources. Unfortunately, much of the information that is available about funeral finance companies is either incorrect or a twisted version of the truth. Uncovering the advantages of funeral funding will help you make the right decision for your business.

The Fees Affect Your Bottom Line

One of the biggest concerns funeral homes and cemeteries have is the impact of any fees the funeral financing company may have on a company’s bottom line. This can be a valid concern; however, most funeral finance companies do not charge large fees for their services. If you calculate the cost of the fees versus the cost of handling your accounts receivables on your own, including hiring someone to manage this area of your business, you will discover that the fees may actually have a positive impact on your cash flow, resulting in more money from each transaction. In many cases, these fees may also be charged to the families instead, increasing your profits even further.

Only Struggling Facilities Need Funeral Financing

While struggling funeral homes and cemeteries are more likely to benefit from these services, they are certainly not the only ones who can use funeral funding. This type of service has a history of making funeral-related businesses more stable, as well as creating a steady flow of income to help with paying bills. It also benefits families by allowing them the option to upgrade any services that would otherwise be unattainable due to the cost and unavailability of funds. With these services, customers will be able to access any life insurance money in a timely manner without having to wait for the payment process to be completed.

Insurance Assignments Come with a High Risk

Some funeral homes and cemeteries refuse to handle insurance assignments because they feel there is a high risk of not being reimbursed for their services. Overall, this risk is quite small, but if a funeral facility uses a funeral finance company to handle their insurance assignments, this risk is reduced even further. The funeral funding company works directly with insurance companies, allowing funeral homes and other facilities to provide resources for families right away instead of waiting for the insurance payments. Funeral financing is a relatively low-risk operation and requires little to no work on the part of the facility.

Hiring a funeral funding company may seem like a risk that can affect your financial outcome. This is often not the case. As long as you do your research before choosing a company, you will find much of the negative information you have heard about funeral financing is not true. Instead, this can be an effective way of improving your cash flow and reducing the amount of work for your business.

If you are interested in working with a funeral funding company to improve your cash flow and better serve your clients, contact us for more information. Mortuary Financial Services has been financing funerals for more than 30 years.