Among the most difficult small business finance situations for commercial borrowers are businesses which require specialized commercial real estate. Substantial challenges for commercial refinancing and acquisitions are typical for funeral home business loans.

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 percentage of value for the commercial financing is a critical finance issue that can vary significantly. 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.

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 commercial 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. This disparity can result in reduced business financing because many lenders will offer a commercial loan that includes only the commercial property loan value. The use of a small business finance consulting expert should be favorable to a better understanding of difficulties to anticipate in a complex commercial loan situation.

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