In our last blog post, we discussed how funeral funding can help with accounts receivable issues, including costly mistakes and the benefits of faster funding. This industry offers funeral homes other benefits as well. The use of funeral finance for business will increase in the future due to a variety of factors, indicating a cost effective future for the industry.

Baby Boomer Decline

The number of baby boomers is beginning to decline as years go by. These individuals are aging, and in time, their families will need to pay for their funerals. This will lead to a drastic increase in the number of funerals, as well as the amount of money funeral homes will need to maintain cash flow and provide families with end of life arrangements. Funeral funding can help a funeral home generate the flow of cash they need to pay their vendors, allowing a family to plan for their loved one before the insurance company pays out the policy.

Expanding Funeral Homes

In the past, many funeral homes were small, family-owned businesses that served a specific local community. Today, funeral homes are often larger businesses. Some homes serve multiple states. This leads to a greater need for available funds. Funeral finance companies can provide a steady flow of cash, instead of requiring funeral homes to wait for insurance companies to complete any paperwork and appropriate funds.

Financial Protection

When funeral homes handle insurance assignments in house, they put the company at a financial risk. If the funeral home allows families to plan and hold funerals before payment is received, there is a liability that their costs will not be reimbursed. However, when these funeral homes work with a funeral finance company, they can eliminate the risk and transfer much of the responsibility to the funeral funding company. Choosing a non-recourse funding company will ensure the funeral home is not responsible if the insurance company does not pay.

Funeral funding was not always a popular option. Many funeral homes felt these services were only necessary for those that were struggling. However, the use of a funeral financing company can offer many advantages. As the baby boomers age, the demand for funeral homes and end of life arrangements will continue to grow. Funeral homes will require better financial protection to ensure they can stay in business.

If you are interested in learning more about funeral funding, contact us. We can help you understand the benefits of this type of service for your financial future.