Many people don’t make financial plans for their funeral and burial expenses, and the death of a loved one often leaves surviving family members facing significant costs. Being an informed consumer before the point of need prevents undue stress.
Barely one-third of Americans plan for their funeral arrangements. Death is undoubtedly a difficult consideration during life. Still, when the inevitable occurs, and the deceased has no end-of-life directives or financial safety net, surviving loved ones must confront more than grief; they must contend with anxiety, decisions, and expenses they may not be prepared to face.
That’s where point-of-sale financing for funeral homes enters the picture. A POS partnership with LendingUSA allows funeral homes to introduce financing as an option to customers looking for ways to defer upfront funeral costs.
Consumer Demand for POS Financing Climbs
Consumer demand for and use of POS financing have grown dramatically in recent years. This demand is fueled by several factors: the pandemic-altered economy, the convenience of evolving technology and increased adoption by merchants.
Financial technology agencies have led the charge in connecting consumers with POS financing. A recent report found that fintech POS providers have diverted billions of dollars from banks, and POS financing is expanding faster than any other type of unsecured lending, including personal loans and credit cards.
Although the age gap is narrowing, point-of-sale loans are especially popular with younger consumers. A 2021 study found that nearly 80% of all POS financing applicants were between the ages of 18 and 50, with 32% of applicants between 18 and 30. The same study found that consumers cited the ability to spread payments for costly products or services — such as funerals — over time as the top reason for seeking POS financing.
POS Financing: Flexibility, Value for Funeral Homes and Families
Point-of-sale financing benefits funeral homes and families alike.
The application process is swift and straightforward, and an eminent fintech like LendingUSA can approve a broad range of credit scores that can capture business for funeral homes and provide families the financial capacity to give their loved ones the send-offs they deserve. The availability of POS financing streamlines the funeral decision-making process and reduces stress on customers, who may otherwise be dreading the sudden financial burden.
When a loved one dies, surviving family members often turn to a home equity line of credit or credit cards to fund funeral and burial fees. But these approaches can prove frustrating, time-consuming, and ultimately more costly than at-need financing.
LendingUSA offers consumers flexible, monthly payment plans with no prepayment penalties and no interest on principal if the funeral loan is repaid within six months of the disbursement date*. Funeral homes are paid directly within days of financing approval.
LendingUSA also accommodates a broad spectrum of consumer credit and loan amounts. Unlike conventional lenders, LendingUSA through its partners can approve loans for a range of credit profiles, and funeral loan amounts can currently range from $1,000 to $25,000.
FastScreen™ Accelerates Funeral Financing Pre-Qualification
The funeral financing pre-qualification process recently received a boost from the addition of FastScreen to LendingUSA’s POS platform for funeral homes.
With FastScreen, a funeral home can confidentially prescreen a customer before engaging in a conversation about expenses and payment. With only an applicant’s name and address, FastScreen delivers a prescreen decision within seconds.
If the customer is pre-qualified for a funeral loan, the funeral home can discuss costs knowing that financing is likely an option. If the customer is not pre-qualified, the funeral home can steer the conversation toward other payment alternatives.
FastScreen relies on a soft credit check, so there is no impact on customers’ credit scores. The feature offers peace of mind to both funeral homes and their customers; funeral homes don’t have to address financing with customers if they know it’s not a viable choice. The feature offers peace of mind to funeral homes as they don’t have to address financing with families if they know it’s not a viable choice.
Submissions of pre-qualified applicants from FastScreen can result in a pre-approval rate greater than 90 percent, a significant jump over the pre-approval rate that funeral homes experience on average through LendingUSA.
LendingUSA further enhanced the POS financing benefits to its funeral home partners by eliminating the 6-7% merchant discount rate and delivering a 101% payout on all funded funeral loans**.
Partner with a Leader in Funeral Financing
LendingUSA knows that the last thing a family wants to think about after a loved one’s death is how to pay for funeral expenses. We also understand that the cost and payment discussion is anxiety-filled for both funeral homes and families, especially when money is an issue.
That’s why our FastScreen-backed POS system is designed with the needs of funeral providers and families in mind. Point-of-sale financing helps funeral homes quickly, comfortably and conveniently help more families in their greatest time of need.
LendingUSA’s commitment to its funeral home partners and their customers is evidenced in part by endorsements from 12 state funeral directors associations. LendingUSA is also the only POS financing service endorsed by the National Funeral Directors Association (NFDA).
To learn more about LendingUSA’s POS financing for funeral homes, call us today at 800-994-6177 or connect with us online to schedule a free demo. Existing LendingUSA funeral home partners who wish to utilize FastScreen should also contact us to enable the feature.
**Earn 1% of the amount financed of every point-of-sale funeral loan that funds directly to your business. Payouts are subject to loan cancellations and/or refunds. 1% Earning Program is subject to change or discontinuation without notice.