Training funeral directors to proclaim “We are a funeral home, not a bank” is not the solution to get paid for goods and services. Access to credit for an increasing number of consumers is becoming difficult and funeral homes are not equipped or offering funeral loans. Unfortunately, traditional lenders like banks are not offering funeral loans especially to those who are credit challenged.
The Washington Times reports that the majority, or 56 percent, of consumers have subprime credit scores (below 640), according to a report released (January 2016) by the Corporation for Enterprise Development (CFED), a nonprofit that advocates for policy changes to help low- and moderate-income households. As a result, these consumers are often locked out of the lending markets. And if they are borrowing, chances are they’re missing out on the lowest rates being offered to consumers with stronger credit. “Bad credit” doesn’t always mean that the consumer does not pay their debts. Credit is a touchy balancing act: a few missed or untimely payments (slow pay) combined with a high debt to low income ratio and the consumer will find themselves in a quick negative credit score spiral.
Yet, family members of the before-mentioned 56 percent are dying and seeking ways to pay for funeral expenses; they can pay, but not borrow money to pay. With a body in building, what do you do? I have outlined steps previously in posts Funeral Director Training: Secure Payment Before Contract Signed. and Funeral Director Training: “We ain’t got much money.” Training funeral directors in advance to understand the parameters of your firm’s policy and the tools/services available for them to create a sensible solution for payment is easily accomplished.
Denying the truth doesn’t change the facts. The truth is funeral home owners are not training staff to create solutions for consumers are struggling financially or providing the tools necessary. These facts manifest themselves with discounts of goods and services along with accounts receivable hampering the cash flow of the business. Solutions are available; take a step in the right direction by contacting me. To initiate improvement of your financial strength and take charge. Funeral Pay Plan is the only funeral industry company with funeral home leadership and the experience to change your facts. We have some big news on the horizon which will add to our strength as the at need solutions leaders for cash flow in the funeral industry, stay tuned!
From the Command Post, Cheer’s Y’all! #thefuneralcommander